FOLLOWING weeks of spelling a broad selection of fascinating words, 15-year-old girl of Starville School, Abuja has emerged winner of the 2020 MTN mPulse Spelling Bee. The competition which commenced in October 2020 witnessed participation from over 16,000 children aged 9-15 across the country.
Snow George emerged winner at a keenly contested finale recently in the final round, she beat Ansel Ifelaja of MasterHill College with the correct spelling of the word “Doraphobia.”
Snow George received a two-million-naira scholarship, a laptop, smartphone and mPulse goody bag. “I am thankful to God, my teachers and parents for coaching me through this building process. It was challenging as I had to learn new words daily. I am truly grateful to MTN for providing me with the platform to showcase something I enjoy,” she said about her experience.
Ansel Ifelaja of MasterHills College Lagos, the first-runner up, was awarded a 1 million Naira scholarship, a smartphone and goody bag, while the second-runner up, Elvis Ekwelem of Graceland International school, Port Harcourt was presented with a N750,000 scholarship, a smartphone and goody bag. In addition, Starville School Abuja (which Snow attends), received laptops and routers, and were provided with internet access for 90 days; teachers of the top three contestants were awarded cash prizes; and all other 17 participants in the grand finale went home with cash and other fantastic prizes.
The prizes were awarded during the Spelling Bee finale by Anthony Obi, Acting Chief Marketing Officer, MTN Nigeria who marveled at the dedication and capabilities demonstrated by the young wordsmiths and reaffirmed MTN’s commitment to youth empowerment saying; “we are thrilled by the level of competition in our first-ever virtual spelling bee; and extend our hearty congratulations to the winners, and thanks to everyone who participated in this event.”
“Through the mPulse proposition, our goal is to enable a world of possibilities in the most innovative ways for the young ones in our country.”
The mPulse Spelling Bee is one of many initiatives planned by MTN, for young students across Nigeria. Spelling bees encourage language comprehension and help students build their vocabulary, while developing study techniques and self-confidence through friendly competition.
Book Title: Nigeria: Democracy Without Development, How to Fix it Author: Omano Edigheji, PhD. Publishers: A’Lime Media Limited and Zeezi Oasis Year of Publication: 2020 Number of Pages: 196 Reviewer: Hussaini Abdu, PhD.
GLOBALLY, democracy has been under significant critical interrogation – both in the advanced and new democracies. The interrogations are informed by increasing right-wing populism, inequality and poverty, slow economic growth and shrinking civic space. No time has democracy been this interrogated since the end of the Second World War.
While the left and Africanist criticism of liberal democracy have been consistent, we have in the last 10 years seen increasing concerns about the failures of democracy even among liberal scholars. The conversation has shifted from liberal triumphalism of the Fukuyama’s End of History to a more interrogative view of democracy even among liberal scholars: See for instance, How Democracy Die – Steven Levitsky and Daniel Ziblatt, 2018; People vs Democracy: Why our Freedom is in Danger and How to save it – Yascha Mounk, 2018; The Road to Unfreedom: Russia, Europe and America – Timothy Snyder 2018; Us Vs Them: The Failure of Globalism – Ian Bremmer, 2018; Edge of Chaos: Why Democracy is Failing to Deliver Economic Growth and How to Fix it – Dambisa Moyo, 2018; Anti-Pluralism: The Populist Threat to Liberal democracy – Willaim A. Galston, 2018. Thomas Carothers and Andrew O’Donohue’s Democracies Divided: The Global Challenge of Political Polarisation, 2019.
There are however, attempts to bolster liberal democracy despite its growing recession – the most recent effort in Africa is in; Democracy Works: Rewiring Politics to Africa’s Advantage by Greg Mills, Olusegun Obasanjo, Jeffrey Herbst and Tendai Biti, 2019.
Dr. Edigheji has through his new book, Nigeria: Democracy without Development, How to Fix It joined this global conversation albeit from a different perspective. It is a welcome addition to this genre of literature, though looking at the situation from Nigerian and indeed African perspectives. Democracies are failing globally, but the peculiarities of Nigeria are worth examining. Our democracy is often assessed from its normative values – human rights, rule of law, electoral processes, separation of power and civic space. Also, because we are a federation – the level of power devolution and restructuring have been common issues of concern. Without undermining the values of these important elements of democracy, the author took a different approach to the democracy discourse.
Using institutional and development lenses, the book addresses the important problematique of the paradoxical relationship between democracy and development in Nigeria. It examines what the author considered the root causes of democratic failures in Nigeria and argues that Nigeria lacks the internal organisational structure and ideological orientation to promote inclusive sustainable development. While recognising the importance of the normative values of democracy including rule of law and civil liberties, the author argued, passionately that they are not sufficient conditions for human development, which should be the essence of democracy. Therefore, democracy is failing in Nigeria because it has continually dashed the hope and developmental aspirations of the people. In the words of the author, the twenty years of democracy in Nigeria has been “marked by increased poverty, inequality, unemployment, underemployment, insecurity, ethno-religious divisions, increased corruption and continued dependence on oil as a major source of government revenue and foreign exchange.”
The failure of democracy to guarantee positive development outcomes is attributed to poor political leadership and weak institutions driven by the absence of developmental elites and state capture through non-merit-based recruitment of both political leaders and civil servants. Fixing these development challenges will therefore require responding to the challenges of weak leadership and weak institutions.
Structure of the Book
The book is structured into five chapters, excluding the preface, which introduces the book, and the postscript where the author shared his dream for Nigeria. Chapter one examines the trajectory of Nigerian democracy – particularly the historical interphase between democracy and military authoritarian rule and the associated struggles that resulted in the 4th Republic. The author uses his insider experiences to debunk what he called a “sectionalisation” of the narratives of the struggle, arguing that it was a national struggle. The second chapter examines the development challenges of democracy in Nigeria. Extensively using secondary statistics of different sources, the chapter specifically examines the different themes of exclusionary social outcomes including unemployment and underemployment, poverty, inequality, food insecurity, high maternal mortality and stunted growth amongst children and low investment in education. The chapter concludes that successive administration in the democratic dispensation has not only failed to transform the structure of the economy but also contributed to fostering a non-inclusive economic outcome (pp. 42).
The third chapter focuses on the political leadership and the lack of development nationalism and what the author called “valueless politics.” The author bemoaned the “rent-seeking” and predatory character of the political elite and attributed the socio-economic crisis of Nigeria to the absence of both a coalition of developmental elites and broad developmentalist coalition in the groups that have been in power since 1999 (pp. 47). This lack of clear development commitments is associated with an observed lack of “clear cut ideology” by the two dominant parties that have been in power since 1999. Therefore, electoral politics is not based on party manifestos, but rather on “meaningless sloganeering”. Politics in the country is thus believed to be devoid of loyalty, honesty, integrity, ideology, principles and intellectualism. To buttress these points, the author examined some of the negative attributes of the system – including godfatherism, lack of internal party democracy, corruption, ethno-religious divisions and mobilisation. Others include neglect of the health sector, poor governance and lack of comprehensive development vision and conflict and insecurity that pervade the country. Chapter four analyses the institutional deficits of Nigerian democracy. Using the examples of South-east Asia and Nordic countries, the author observed that the state institutions have become a structural liability to democracy. The years of corruption, quota system and lack of merit in public service recruitment and leadership recruitment has perverted the system, increased the cost of governance, corruption and undermined job-security and professionalism.
As a result of these anomalies and decay, the system is unable to attract its best and brightest. The author specifically emphasised the value of institutions to development. He observed that democratic developmentalism is largely driven by technocratic public policy and requires a bureaucracy that is competent, professional, disciplined and efficient.
In the last chapter, the author provides strong recommendations on how to build a shared prosperous future through a democratic developmental state. Some of the key recommendations include diversifying the economy through industrialisation and manufacturing, building the political, technical and organisational capacities of the state and enhancing bureaucratic efficiency.
Comments
Dr. Omano Edidheji through this book has made an important contribution to our conversation on democracy and development in Nigeria. The book has not only brought a refreshing perspective to examining the challenges of democracy in Nigeria, but has also daringly addressed some of the silent issues that often get lost in our ever-contentious national discourses. The book is an important shift from normative democracy and federalist contentions to more structural, institutional and development concerns. While the normative issues of elections, civic space and rule of law remain germane to any conversation on democracy, their essence is predicated on how much value they add to the lives of the people. The striking point of this book is the attempt to boldly call out the ruling class for the escalating crisis of democracy and the need for a reorientation toward developmental nationalism. For a country that has been badly divided through years of divisive politics, where nationalism has become an anathema under the weight of globalism and internecine contentions, this is quite a timely call.
Nevertheless, I have three concerns with Dr. Edigheji’s thesis:
Firstly, while I agree with the author substantially on the need for development-oriented ideology, I am not sure it is correct to say our political class or political parties lack ideology. What we lack is an alternative ideology that is nationalist and developmentalist, something different from what they share; If we take ideology to mean “the “production of ideas, of conceptions, of consciousness,” – all that “men say, imagine, conceive,” and include such things as “politics, laws, morality, religion, metaphysics.” The author has in several sections of the book alluded to the ruling class’ unbridled commitment to neoliberal economic and political doctrine. These doctrines operate at the level of ideology and shape the character of the state and society.
It is in this context that I wonder what the author thinks about some elaborate provisions in Chapter Two of the Nigerian 1999 Constitution. The Constitution provides that the state shall direct its policy towards ensuring the promotion of a planned and balanced economic development; that the material resources of the nation are harnessed and distributed as best as possible to serve the common good; that the economic system is not operated in such a manner as to permit the concentration of wealth or the means of production and exchange in the hands of few individuals or a group; and that suitable and adequate shelter, suitable and adequate food, a reasonable national minimum living wage, old age care and pensions, and unemployment, sick benefits and welfare of the disabled are provided for all citizens.
Section 17 (1) of the Constitution also provides that “the State social order is founded on ideals of Freedom, Equality and Justice”. In furtherance of this, section 17 (2) provides that every citizen shall have equality of rights, obligations and opportunities before the law; the sanctity of the human person shall be recognised and human dignity shall be maintained and enhanced; governmental actions shall be humane; exploitation of human or natural resources in any form whatsoever for reasons, other than the good of the community, shall be prevented; and the independence, impartiality and integrity of courts of law, and easy accessibility thereto shall be secured and maintained. These provisions are easily dismissed as not justiciable – but could it be an important anchor for our quest for an inclusive and just society?
Secondly, while I share the author’s concern about the inefficiency or the crisis of the Nigerian public service, I don’t share the view that it is caused by the zoning or federal character. It is also not historically correct to argue that the immediate post-independent civil service was not representational. The Quota system or federal character principle doesn’t undermine merit in any way, corruption and patronage system do. It is not possible to manage a diverse society like Nigeria without a form of association. It is particularly so in this age of identity politics. In my opinion, consociation is a strength, not a weakness, what we need to address is the abuses associated with the process.
Thirdly, Sustainable and Developmental Democracy relies on 3 pillars – strong state, inclusive economy and strong civil society. The author extensively discussed only two of these pillars and failed to address the third. The civil society remains an important institution of democracy. Its strengths and weaknesses could be an important determinant of the direction of democracy and even the development paradigm. The challenges of Nigerian democracy and development is therefore to some extent a function of the nature and character of the civil society.
Nevertheless, this is an important piece of work for a strata of Nigerians – politicians, academics, policymakers, journalists, civil society organizations and students. It is a lucidly-written piece of work, passionately presented and neatly produced. The intersperse of history and quantitative data makes this work compelling for all students of the Nigerian political economy. I enjoyed reading every bit of it and I hope you all enjoy it too.
Book title: A Circle Never Broken Author: Onwanyi Ulegede Year of Publication: 2018 Number of Pages: 70 pages (43 poems) Reviewer: Hope Enyi-Idani Publishers: Chapuga
POETRY, like other forms of literature, is written to share ideas, express emotions and tell stories through imagery, metaphor and generally dense language. In poetry, words are strung together with great skill to make otherwise ordinary images and ideas seem novel and interesting. The importance of aesthetics in achieving the heightened expression referred to here in poetry cannot be overstated. The worry is that some poets, in the process of paying attention to aesthetics, lose sight of their duty as poets to make impassioned and sustained effort to bring about social or political change in the society. A good poem is a poem that gives attention to artistry and at the same time has a pertinent message for the reader. This review of Ulegede’s A CIRCLE NEVER BROKEN assesses the poems in the collection to see how the poet has balanced her handling of aesthetics as well as themes.
The first striking thing about Ulegede’s collection of poetry is the use of imagery. Imagery is simply defined as the use of words to create images. This technique is said to be the livewire of poetry as it helps to arouse intense feelings in the readers or listeners.. Ulegede has used imagery to evoke a sensory experience in the reader. Using highly descriptive language, she plays with the readers’ senses, providing them with experiences that appeal to their senses of sight, sound, smell and taste.
From the very first poem “Uphill”, the poet’s vivid description of the hill could just make you visualise the hill, absorbing the beauty of nature. This is evident in lines 4-5 o the poem:
Fresh green leaves caressed by nature
Pure water springing from the rock.
These two lines appeal to the senses of touch and sight. One can almost feel the light touch of a caring hand – the hand of nature – caressing the leaves. This also evokes the image of a lover caressing the beloved. The sight of pure water springing from a rock can also be easily imagined by the reader.
The use of imagery is also evident in the poem “Out comes the sun” on page 20. The use of imagery to convey the feeling of being caged and helpless is particularly noticeable in the following lines of the poem:
Hedged like a caged mouse
Trapped in invisible chains
Hurting, digging deep, tears.
These lines no doubt create the atmosphere of oppression and the feeling of empathy which the poet clearly intends to achieve in the poem. In “Anxiety” on page 28 , stanza 1 of the poem is another good example of the use of imagery by Ulegede. It reads:
She sits alms clasped between her tighs
Blood rushing through her veins
Strong, palpable thumps in her chest.
These poems and many more have the touch of imagery which has made this collection quite engaging for the reader.
Another notable poetic device that has added beauty to this collection of poetry and also aided the writer to easily convey meaning is symbolism. The poem “Mama’s Counsel” is clearly symbolic of the wisdom that comes with age and experiences while “Leer” on page 33 is symbolic of the deception that is associated with Nigerian politicians. “Superstar” on page 35 is a symbol of the rise and fall of heroes, which is typical of Nigerian politicians who want to remain in power because of the fear of what awaits them when they are no longer in power. The title poem “A circle never broken” (page 51) is symbolic of the Nigerian dilemma of running in circles as a result of our failure to learn from our mistakes. This is evident on page 52.
Substituting oil for water
Renounce and denounce representatives
Who drop their constituencies under table skirting?
To remember them at elections
With salt in milk tins and a glass of beer for each man
A psyche and a circle never broken (Lines 25 – 32).
Ulegede has also employed sound devices like onomatopoeia, alliteration, assonance and repetition in most of the poems to convey meaning This is seen in the poem “The rock” on page 15 where onomatopoeia is employed thus to show the futile struggle by the masses to wriggle free of the stranglehold of the corrupt leaders thus:
Whimpering, howling and squealing
Like a puppy kicked in the ribs (Lines 1 – 2)
The sound of these words is suggestive of their meaning and this helps to heighten the emotions they convey.
In “Mother love” on page 25, the use of both alliteration and onomatopoeia is evident in the following lines:
At birth, we purr and mew
We babble and cuddle
Pleasantly, we meddle and mess
Toddling; we scuffle and ruffle (Lines 1 – 5)
This poem is so enjoyable because of these devices. Though motherhood is tough; the musical poem has pleasantly presented the rigors of motherhood like a child’s play.
Having analysed to some extent, the aesthetic value of Ulegede’s poetry, we now look at her use of poetry as a means to create meaningful change in society. This inclination of the poet is seen in her choice of theme. Every single poem in the collection has something tangible to convey. The collection is a blend of so many themes. For instance the opening poems reflect on the theme of striving and determination. This theme is reflected in “ On my own”, “Winning spot”, “Bold face” and “The rock”.
On the other hand, a poet is more than simply an author; he is a visionary who has the ability to reveal the world’s hidden truth which most people do not see. This fact is reflected in the way the poet writes about Africa and Nigeria with themes like political deceit as evident in the poem “Leer” on page 33; the theme of oppression as seen in “Let the cat out of the bag “ (page 34), “ Who are you” on page 37, “Youth Arise” on page 55 and the title poem “ A circle never broken” which is a reflection of the unending circle of corruption and wickedness in the nation Nigeria. There are also poems in te collection that focus on love, marriage, motherhood and friendship.
It has been observed that poetry can be used to appeal to people psychologically, and that it also has therapeutic benefits.For example, Billigton and Robinson wrote on the use of poems in reading groups for women prisoners, which created strong personal resonance for the group (Billington and Robinson, 2013: 20). An example of such a poem in Ulegede’s collection poem is “Home sweet home,” a hilarious poem, though bordering on a serious issue.
In this collection of poetry, A CIRCLE NEVER BROKEN, the poet has dutifully written on themes that will serve as a tool for change to the society. However, in trying to portray meaning, the poet does not lose sight of aesthetics as is evident in her generous employment of poetic devices.
Title: What’s Up Message. From ‘Best Dad” to Dearest daughter Author: Chika Abanobi Reviewer: Yetunde Oladeinde No of Pages: 118
THE book starts by examining the secret worries of a dotting dad. This is also aptly captured in the dedication this way: “ To a father growing old, nothing is dearer than a daughter. It is a journey exploring a father’s fears and tears, unexpressed love, as well as his care and protection. This experiences gets deeper as the girl moves towards teenage years, the adventure , panic as well as gradual withdrawal from her father.
In the foreword written by Mr Mike Awoyinfa, seasoned Journalist he summarises the book thus;
“The small book you hold in your hand , the first of three part series focuses, in part on the fond memories that some world famous women have with their dads. It dwells among other things, on lessons that could be drawn from their experiences to enhance ones relationship with one’s daughters, if you are a man, or, with your dad, if you are a girl, as the case may be.
Some of the personalities featured include Nollywood Actresses like Bimbo Ademoye, Omoni Oboli, Belinda Effah, Uche Jombo as well as International figures like Malala Yousafazai, Chimamanda Ngozi Adiche, Hilary Clinton and Michelle Obama.
It is in ten chapters or parts as the author chooses to segment and spice with quotes depicting the experiences of girls who saw their dads as their heroes, the listening here who gave them proper directions and guidance at the right time.
As you explore the message and the perspective of the author on the issues raised, you also discover that for sorry of these girls, no man appear to meet the standards laid down by their dads while growing up.
Daddy’s Girl, you would say, that was great, great to know that you have a dad that compares to no other. A great father figure, your superhero and everything. Men who did much more than just paying Bill’s, they were always there to spend quality time creating fond memories.
The Centre for Black and African Arts and Civilization (CBAAC), a Pan – African Centre and a parastatal of the Federal Ministry of Culture and Information, last week in a public lecture reminded AU Leaders of its cultural role and mandate to eradicate Covid-19 and ensure the youths enjoy cultural freedom for a greater tomorrow. Edozie Udeze reports
WHEN the Centre for Black and African Arts and Civilization (CBAAC) was established soon after FESTAC ’77, the total intention was for the centre to safeguard African cultural relics and heritages on behalf of all blacks in the world. Over the years this mandate has been kept alive through cultural programmes, lectures, symposia, conferences, both at home and across continents, to ensure that African cultural affairs and values are kept in the front burner. Part of the responsibility of CBAAC is also to serve as a Pan – African cultural centre meant to encourage even blacks in the Diaspora to think home and seek plausible ways to reconnect with mother Africa.
Last week, CBAAC also came alive at the Nigerian Institute of International Affairs, (NIIA) Victoria Island, Lagos. It was when one of its lecture series took place. The title was: Global African Solidarity and Cooperation in the aftermath of a Pandemic: Covid-19 in perspective. The theme sought to evaluate the cultural roles and efforts made by African Leaders under the aegis of African Union (AU) to mitigate the worrisome effects of Covid-19. The atmosphere in the hall was conducive, inviting. Guests sat with rapt attention, observing Covid-19 official protocols, while waiting to savour the aura of the moment. It was indeed colourful and alluring as cultural displays by dancers took hold of the guests.
But the Director General of CBAAC, Oluwabunmi Ayobami Amao, a seasoned accountant did not fail to seize the opportunity to reassure guests that the centre is still alive to its statutory mandate to celebrate, organize and promote African numerous, tangible and intangible, cultural nuances, values and norms.
A celebrated culture Amazon herself, she said: “The annual public lecture series is one of the centre’s programmes instituted and consolidated for over two decades by my predecessors and devoted to discussions on issues of common concerns for Africans, both on the continent and in the Diaspora. This, indeed, is part of the mandate of CBAAC as a pan – African cultural centre envisaged by its founding fathers…”
With this statement, the hall went agog as the guest lecturer, Comrade Laoye Sanda took over the dais to regal visitors with different stages of the Covid-19 pandemic and its cultural remedies by the continent of Africa. This is an issue that has been troubling the world. When corona virus started earlier in the year some pundits had predicted that Africa and its millions of peoples would be the worst for it. However that pontification has come to naught as at today. But how have African Leaders, AU, African peoples themselves managed to keep afloat? This is the puzzle that has left the world more confused and uncomfortable than ever before even as the pandemic ravages Europe, America and other continents.
Sanda, a veteran of the struggle, said: “this topic is quite appropriate in terms of the great and numerous negative impacts of the Covid-19 throughout the world and the frantic efforts being made all over to find effective drugs and injections with due medicare and individual personal hygiene habits to overcome the damaging effects in the short and long term…”
“Therefore, this paper has made a broad survey of the African Union Aims and objectives, organizational mechanisms currently in use and programmes priorities and appropriateness to cope with the Covid-19 pandemic. There is also the need to be more innovative, proactive and more, in new policies to sustain the whole destiny of the African peoples”.
While Sanda marshaled out the level of love and cultural concerns shown by Africans to one another, he received resounding responses from the audience. Peopled mainly by culture technocrats, students and academics, the hall was filled to near capacity. The students who came from different parts of Lagos State were full of gratitude to CBAAC for the rare moment to learn more about Africans in time of Covid-19 pandemic.
Sanda went on: “Indeed the series of cooporation between African States as prepared by AU Secretariat Comission with regards to programmes, projects and issues pursued within and outside…”, shows clearly how effective or otherwise this has been. “It is clear that AU has been very successful in addressing the needs of the African political class. But it is yet to make a significant difference in the lives of many ordinary Africans”.
In his reckoning, Sanda observed: “The AU has, however, been less successful in connecting its activities and programmes to many ordinary Africans by providing common public goods and services valued by commoners in Africa. They have failed somewhat to give voice to the majority of young peoples in Africa. They have also failed to promote intra-Africa trade, good governance and financial independence of the African continent as well as struggled to address the expressed material needs and quotidian concerns of ordinary African”.
But how can this short coming be ameliorated as the second phase of Covid-19 rears its head? Sanda again said: “the first is that government must ensure that all the new funds and promises of money on the pandemic are properly invested in a value for money approach”.
•A cross section of participants at the lecture. Photo: Edozie Udeze
A Political Scientist and academic, Sanda is quite at home with statistics, political records and more. He said further “It is also a time to think through the value chain of the health industry, the economic opportunities including jobs, enhanced income, taxation and general value added to the economy that will arise from improved investments and service delivery in the sector”.
Above all, he maintained that attention should be redirected towards the eradication of terrorism, ensuring that gender and the female child have advantage. AU Leaders have to equally work hard to avoid more wars, brain drain, incessant debts, poverty and more troubling issues that have become bedfellows to Africans.
In their discussions, Mrs. Akinsiku Olubukola, Lawyer, and Dr. Olusola Sokefun, academic, threw more light on the problem areas of the African continent. The general concern is that all hands must be on deck to make the continent and its peoples beneficiaries of the abundant resources nature has bestowed on Africa.
The lecture was attended by topnotch culture technocrats, culture advocates, students and stakeholders. It was spiced with cultural displays and dances by Island Theatre Villa, Lagos. The dance performances further accentuated the euphoria to keep culture ever poignant in African affairs.
Come December 31, 2020 insurance companies in Nigeria are expected to have raised at least half of their paid up share capital as directed by the National Insurance Commission (NAICOM). Assistant Editor Nduka Chiejina looks at the issues surrounding the proposed increase in paid up share capital/recapitalisation of insurance companies
THE recapitalisation of insurance companies in Nigeria is once again on the front burner of industry debate. The reason is not farfetched: stark realities have made a fresh injection of capital rather inevitable.
It is no longer news that the National Insurance Commission (NAICOM) has given insurance firms in the country one more year to recapitalise.
It became imperative for NAICOM to set a new deadline for the recapitalisation process, considering how the Coronavirus pandemic has disrupted the activities of most companies, including the insurers.
According to NAICOM, “the incidences of Covid-19 pandemic have made it difficult to proceed with the Dec. 31, 2020 recapitalisation deadline.”
The principal objective of the reform is to have bigger and stronger players in the industry with enhanced capacity to reach and cover the majority of the Nigerian populace.
In the meantime, insurance companies are expected to meet at least half of the capital requirements by the end of 2020. The final deadline for full recapitalisation is now September 2021.
This is the third time an extension has been granted since the recapitalisation programme was first announced in May 2019. Initially, NAICOM had extended it from June 30th, 2020 to December 31st, 2020.
Rules of engagement
The recapitalisation programme requires life insurance firms to meet a minimum paid-up capital of N8 billion, up from N2 billion; general insurance companies are expected to increase their paid-up capital to N10 billion from the earlier N3 billion.
Composite insurance (those that operate both general and life insurance) have been asked to recapitalise to the tune of N18 billion as against the pervious amount of N5 billion, while reinsurance businesses are now required to have a minimum capital of N20 billion from N10 billion that obtained in the past.
Pressure
Since the order to recapitalise was given, plans have been afoot by insurance companies to merge while some big ones are trying to acquire smaller ones. Interestingly, the NAICOM is under pressure to manage the situation well.
Some insurance companies are trying to circumvent the process by presenting their assets in lieu of cash as required by the paid-up share capital requirements.
While the big insurance companies and the newly registered ones have already met the capital requirements some smaller ones that are yet to meet the recapitalisation target are pushing against it: because of the impact Covid-19 has had on their businesses and their inability to raise the needed capital.
The House of Representatives recently passed a resolution demanding that the NAICOM suspend its planned December 31, 2020 mandatory deadline for the first phase of 50%– 60% of the minimum paid-up share capital for insurance and reinsurance companies.
According to the House of Representatives, “the suspension is expected to last for six months from January – June 2021 and is necessary to give the insurance operators soft landing, as well as cushion the effects of Covid-19 and other unforeseen circumstances they might have suffered.”
Some shareholders too have risen up against the planned recapitalisation and have gone to court. The suit was instituted by the Incorporated Trustees of Standard Shareholders Association of Nigeria and Mr Godwin Anono. They are asking the court to halt any further steps by NAICOM towards implementing the directive for the companies to recapitalise, pending the hearing and determination of the main suit.
It is true that Covid-19 adversely impacted the insurance industry but before Covid-19 it was a well-known fact that insurance companies would be asked to recapitalise since it become obvious that some of them were having difficulties settling claims.
Claims settlement is at the core of insurance business. The trust deficiency that the insurance industry suffers today is due to the long-held belief that insurers do not like to settle claims or downright refuse to settle claims.
To build trust in the industry, NAICOM is pushing for the recapitalisation of insurance companies so that claims settlement will be carried out without much acrimony thus encouraging the public to have trust in the insurance industry.
To make things easier for the insurance companies, NAICOM has split the recapitalisation process into two phases with the first phase terminating on the 31st of December 2020 and the second and final phase to terminate on the 30th of September 2021.
Under the recapitalisation guideline, insurance companies must meet 50% of the new minimum capital requirements while reinsurance providers are required to meet up to 60% of the new minimum capital requirement.
Under the revised guideline, Life insurance underwriters are to have a minimum capital of N4billion by 31 December 2020 and have fully paid-up capital of N8billion by 30 September 2021. General insurers are expected to meet a minimum paid-up capital of N5billion by 31 December 2020 and N10billion by 30 September 2021 respectively.
For Composite insurance underwriters they are expected to have a minimum of N9billion in paid up capital by 31 December 2020 and N18billion by 30 September 2021 while reinsurers have been told to have N12billion in minimum paid up capital by 31 December 2020 and N20billion by 30 September 2021.
Why recapitalise
According to the Corporate Finance Institute, “recapitalisation is a type of corporate restructuring that aims to change a company’s capital structure. Usually, companies perform recapitalisation to make their capital structure more stable or optimal.
Recapitalisation essentially involves exchanging one type of financing for another – debt for equity, or equity for debt. One example is when a company issues debt to buy back its equity shares.”
Recapitalisation are usually required to reduce financial burden; to prevent hostile takeover and for reorganisation during bankruptcy.
Ekerete Olawoye Gam-Ikon is a management consultant with specialisation in Strategy and Insurance. He recently highlighted why the current recapitalisation drive should be encouraged.
According to him, “policyholders reveal that most individuals are having horrifying experiences with many insurers involved in unsettled claims face-off. Since ‘bad news spreads faster’, the efforts of the more responsive insurers to claims continue to be eroded by the poor actions of others.”
He noted that “amongst policy makers and public office holders, insurance does not enjoy necessary level of confidence to make it an item on the agendas of meetings.”
Ekerete Olawoye Gam-Ikon added that “alternative (Non-oil) sources of revenue, social investment, job creation and most recently, financial inclusion are the points of discussion amongst local and international analysts of our national economy yet with little or no mention of insurance despite the role they all know insurance can play in those areas.”
“A transparent handling of the recapitalisation process will, in my view, reveal the genuine gaps that exist in the insurance industry and attract other economic actors with solutions.”
Ekerete Olawoye Gam-Ikon argued that “as investors at home and abroad analyse the opportunities Nigeria offers, the most critical concern continues to be managing the increasing risks. While technology has addressed most in rather predictive and preventive manner, we are yet unable to respond well when the unexpected occurs.”
This is why the Federal Government of Nigeria through NAICOM decided to increase the minimum share capital of insurance companies. Therefore, a transparent process where interested investors can visit your website or through your social media accounts know the status becomes imperative.
Most insurance operators believe that “the decision to extend the deadline is reasonable under current circumstances. The coronavirus pandemic has ravaged global economic and financial systems thus making it more difficult for an already unattractive insurance sector to raise much-needed capital.”
“We note that several players have initiated the process of raising the needed funds from their existing shareholder base via the right issues. However, we highlight that some of the players currently have a negative book value of equity and are trading below their par values. Hence, raising equity capital does not appear feasible. That said, we expect to see a flurry of mergers and acquisitions in the industry once conditions become more favorable,” they said.
George Etomi and Partners describe recapitalisation as “one of the strategies companies use to improve their financial stability. A company may achieve this by adding more debt, more equity, or both to its capital. The decision to recapitalise may be taken by the company voluntarily, but sometimes a company undertakes compulsory recapitalisation in compliance with a regulatory directive.”
“In the latter sense, recapitalisation has proven to be a useful tool in the hands of the Nigerian government for sectoral reformation to sustain adequate economic growth and development. To meet compulsory recapitalisation requirements, companies have had to raise additional funds or gone through mergers and acquisitions,” the company added.
Impact of the circular on the sector
George Etomi and Partners argued that “despite the underwhelming performance of the sector so far, we see the introduction of the new minimum capital requirement as a welcome development and expect it to help improve the insurance sector just as similar laws in the banking industry in 2005 helped shape the future and development of the Nigerian banking industry.”
Nigeria’s insurance sector the company said “is still one of the most underdeveloped compared to its peers. With a population estimated at 200 million people, a growing middle class and increased life expectancy rate for Nigerians (55.2 years average for men and women in 2018 from 54.5 years in 2017), the potential for growth in the sector is significant.”
However, at 0.3%, Nigeria has the lowest insurance penetration level amongst notable African countries. Currently, South Africa is at 14.7%, Kenya at 2.8%, Angola at 0.8% and Egypt at 0.6%. Similarly, the sector’s insurance density is still one of the lowest when compared to its peers.
George Etomi and Partners believe that “not all insurance companies will be able to meet the June 30, 2020 deadline as mandated by NAICOM and this will invariably lead to the mergers and/or acquisitions of insurance companies for compliance purposes. This in effect will result in further consolidation of the insurance industry.”
While receiving the licence issued to Heirs General Insurance, the chairman Tony Elumelu said the new insurance company will develop products.
According to him, “that is one of the things we will bring to the sector. We understand market research, we understand what consumers want, we know how to reach them and surpass their expectations and there is always room for improvement especially with technology.”
•Thomas, Commissioner for Insurance
Conclusion
It is true that the insurance industry was badly affected by Covid-19, however before the coronavirus pandemic struck, the insurance industry had been suffering from existential threats which can only be addressed through recapitalisation. These include: obscurity – out of the 57 Insurance companies and two reinsurance companies in Nigeria, less than half advertise their products. Fraudulent small players –fringe insurance players with little or nothing to lose swindle innocent policyholders thus giving the industry a bad name and reputation. Low premium, poor assets– because many insurance companies receive premiums below market value, they are unable to invest in quality assets that will help them generate income and weak product development. One issue that kept on recuring during the licensing of new insurance companies in November 2020 was lack of innovative insurance products that will attract policyholders to the industry.
Mr. Sunday Thomas, the Commissioner for Insurance repeatedly told the newly licensed insurance and reinsurance companies to develop innovative products. Over the years, insurance operators have remained stuck in time and failed or refused to design innovative new product unlike their counterparts in South Africa.
With recapitalisation of the industry and more capital to play around with, the management of insurance companies can now in campaigns or adverts, force small fraudulent insurance companies to either emerge and be reckoned with or be acquired by bigger credible players and recruitment of smart innovative staff to help drive market value premium for better asset acquisition.
If successfully executed, the planned recapitalisation will result in the ability of companies to underwrite bigger risks e.g., in oil and gas, improve settlement of claims and sensitise the public through continuous marketing on the need to buy more insurance policies.
DR. Olufemi Ogunlowo, CEO, Strategic Outsourcing Ltd, Lagos has been conferred with fellow of the Association of Outsourcing Professionals of Nigeria (AOPN).
He was inducted at the just concluded 2020 investiture of the Association, along with seven other distinguished professional members and corporate bodies, at an event presided over by its National President, Dr. Obiora Madu.
According to the Governing Council of the Outsourcing Professionals of Nigeria duly nominated, ratified and formally approved Dr. Olufemi Olukayode Ogunlowo’s Investiture as a very worthy fellow of the Body stemming from his Personal and The Corporate contributions over time since 2006, especially with a staff strength of 16,000 to date to his credit so far.
In his keynote address at the event, the guest speaker, Mr. Femi Boyede, an export development expert/professional based in Canada who spoke on the theme, ‘Redesigning Service Delivery Portfolio for the New Norm,’ admonished the entire outsourcing professionals, including the newly inducted fellows on the need to be efficient.
Boyede also impressed on Senator Dr. Gbolahan Dada, among others to revitalise the legislative mechanism to enact the enduring regulatory legislation to further enhance its professional stability and excellence to the greatest advancement of the members the body and the nation at large.
Others conferred with the honour include: Senator Dr. Prince Gbolahan Dada CEO, Lington and Bernie Consulting Ltd, Mazi Sony Allison, Founder/Executive Chairman, GMC Logistics Ltd, Roselyne Onalaja, Managing Director Stresert, Mr. Taiwo Ajibola, CEO MDS Logistics and Mr. Kofi Sagoe, Managing Director, VT Leasing Ltd.
IBOM Icon Hotel and Golf Resort, one of Nigeria’s leading hospitality brands is assuring guests of an unforgettable experience at the Hotel during this festive season. The hotel which recently had its management handed over to the Icon Hotel Group will from December 24 to January 1, 2021 entertain guests to a lineup of special activities.
This includes a whole day of Christmas buffet with mouthwatering cuisines comprising local and continental dishes, special carol night featuring cake cutting, Family Picnics at the Resort, Excursions with Packed Lunch, Live Band Performance, Fun Activities for kids as well as various outdoor sports such as metro walks, acrobatics, golfing, bike riding, swimming etc.
Ibom Icon Hotel & Golf Resort is located in the safe environment of Uyo, Akwa Ibom State with excellent infrastructure, sitting on 147 hectares of well-maintained landscape amidst pristine palm-tree forest and rivers, one feels immediately relaxed and invigorated. The hotel offers excellent accommodation in 163 rooms and suites on 5-star level, with restaurants and bars.
Speaking about the hotel’s offerings, Managing Director Icon Hotels and Resorts Nigeria, Adetope Kayode has assured guests and visitors alike of an awesome and exciting experience at the hotel, noting that this was part of the new management’s commitment to provide top-notch services to all guests at the onset of its assumption as the hotel’s new managers.
Kayode also said that customers can also experience the hotel’s exquisite cuisines and exceptional drinks serving at the Ibom Icon Pavilion at Uyo Christmas village. He encouraged visitors coming into the state for leisure and looking forward to spending the Christmas holidays with their loved ones to come share their joy and happiness with some excitement at the Ibom Icon Hotel and Golf Resort.
DESPITE the horrors and economic woes experienced in all sectors and economies of the world due to Covid-19 pandemic, academic dons have expressed that it created opportunities and inovations.
According to the Founder and President, Zurich Elite Business School (ZEBS), Prof Adonis-Emmanouil Fragkakis, every crisis can be used as an opportunity for change, and innovations.
He noted that the use of new technologies and the strategic mindset to do things differently than competition is the only way to overcome current challenges.
“For me, COVID-19 in as much as it has fractured global economies and affected many business leaders, it also provided an opportunity for business leaders to consider more innovative ways to sustain their businesses. The trouble would be when business leaders don’t learn from the COVID-19 experience and continue like nothing happened. At the ZEBS Real World Skills MBA, we hope to instill this ethic and culture in our students.
“Business Schools around the world have been mainly focusing on knowledge being transferred to the students through theoretical concepts. No direct interlink with real corporate life has existed, and accordingly, students have been prepared in a totally wrong way about the challenges they would face later on in the real-world as entrepreneurs. Africa has to learn from the failures of the atheistic societies and systems of the Western world that were driven by shareholder value concepts and greed, focusing only on short-term financial goals and not taking ethical and sustainable aspects at all into account,” Fragkakis stressed.
Also speaking to The Nation, Dr Akanimo Odon, Africa Director Zurich Elite Business School pointed out that it is important to always question your existing business models and never feel secured about what might happen tomorrow, saying that tomorrow could come with big surprises.
According to him, “The more you train your employees to live with a competitive advantage culture and continuous questioning of existing business models, the better you will be prepared for future challenges and the less these, next-day-surprises” will impact your business.
Odon said, “This is where we see our contribution to African leadership and entrepreneurship. We work with this differentiation mindset, train students using practical techniques, equip our students with state-of-the-art practical real-world knowledge about management and emerging technologies, which will lead to new business models and create innovations in Nigeria and other African countries. We have also developed the unique ZEBS African Entrepreneurship Fellowship, a first of its kind startup training dedicated to our students and designed to help Nigerian and African entrepreneurs to maximise their chances of success through mentor-ship, providing access to industry experts and seed capital.
“We equip African managers and entrepreneurs with real-world skills and we train them with exactly the same job-training business modules, we have been using for almost two decades to train managers and consultants working for big companies such as US Tech Giants, Swiss Financial Institutions, German premium segment automobile manufacturers, Swiss and German pharmaceutical manufacturers, energy leaders and many more.”
