Category: CEO

Commissioner for Insurance/Chief Executive, National Insurance Commission (NAICOM), Mr. Thomas Olorundare Sunday is an advocate of insurance consumer protection. He is on a campaign to ensure that Nigerians have access to more comprehensive insurance options, and insurance firms should provide discounts and incentives for risk mitigation and home-hardening programmes. He provides an insight into the campaign and other issues in this interview with reporters in Lagos. DANIEL ESSIET was there.

What are the factors affecting the insurance industry?

One of the major issues that, I believe, insurance is facing is the public not understanding what it is and, therefore, creating room for misconception. And, again, when you don’t have the details of how it happens or how it operates, the tendency is for individuals to give it his interpretation. That is what we have suffered most as an industry. But, of course, you know that insurance is the backbone of every business. I think the first presence of insurance in Nigeria was 1892 through the National Insurance Company (NIC). It was introduced by the colonial masters to protect their trade. That was the whole essence. Royal Exchange Assurance Agency established the first insurance company in 1921.

The first Nigerian company, I think, came in 1958 with the establishment of African Insurance Company Limited. This was just before the law was put in place to protect the policyholders. This was in 1961.

Of course, the law itself didn’t come into effect until much later around 1964. But, what you can call the contemporary insurance regulatory law actually came into effect in 1976 when the Insurance Act was enacted and signed into law.

But the terms of institutional establishment, what we have as the regulatory body started, I think, in 1991 when the Financial Supervisory Board was established. It was pulled out of the Ministry of Finance. It used to be in the Ministry of Trade, then later Ministry of Finance. It was a department in the Ministry of Finance.

But, when a committee was put in place to look at how best insurance should be regulated, then the industry on its own volition asked the government that they were ready to contribute towards the funding of the regulation. And, of course, the response of the government, then, was to set up the National Insurance Supervisory Board, which was supposed to administer the fund to be created. That was the origin of the one percent insurance levy, which was set aside to administer insurance regulation.

Can you speak on the level of claims settlement in the industry?

After the EndSARS protest, I was made to understand that the majority of the sufferers who had insurance cover were adequately rewarded. We’re talking of about  N20 billion in claims. The more claims that are settled, the more relevant insurance becomes to the life of the people. As a commission we encourage claims settlement.  We want to be big in dealing with companies with respect to claim settlement. When claims are paid promptly, what it means is that we are becoming relevant in the lives of individuals and also in the industries. That’s what it is.

How has the commission responded to capacity challenges?

We know that we have a regulatory responsibility. One answer to this is to get our people well-equipped. So, from time to time, we try to retool the staff so that they are alive to their responsibilities. Apart from that, a lot of initiatives have also been put in place. We’re trying as much as possible to create a conducive environment for operators to carry out their businesses. We know that insurance is a knowledge based sector and industry. There are certain professions that are scared globally in the insurance industry. Of course, we have our  share. So many developments have made it more compelling for operators to have actuaries in their organisations. For example, the IFRS 17 make this more compelling for you to carry out work that involves deploying the capital adequacy ratio. However, you’ll need accurate knowledge to do that effectively. Apart from that, we know that valuation or changing fair value have become more significant in the portfolio of the industry. There are now requirements. This has made it more compelling and more significant in the portfolio of the industry before the 2004 Act. But with Pension Reform Act 2004, as amended by the 2014 Act, it has become more critical. To a large extent, insurance has been the beneficiary of the provisions of that act. Because of that, pensions has become quite significant for us with respect to life operations, and in totality, it has become very significant in the portfolio of insurance practice in Nigeria with respect to the life business annuity.  It accounts for not less than 60 per cent when it comes to the total portfolio. And that is quite significant to us. Since it is a very volatile business that requires daily monitoring, and it is in the business space of actuaries to be able to do that.  And that is why we are saying, as a commission, if you are going to practise or continue to sell annuity business, you must have an in house actuary  or you must make plan to get one because it requires a consulting constantly.

What else have you accomplished in terms of building human capital?

We have continued to finance education in some financial institutions.There is no geo-political zone that have not benefited from our assistance to tertiary institutions. We support and sponsor insurance initiatives, either by infrastructure, or by building office space. We’ve sponsored some four Institute chairs for training by sending them abroad. We have continued to contribute to the College of Insurance and Financial Management. Of course, some of you must have heard that a building was named after the Commission. The project was subswtantially funded by the Commission, as part of our statutory responsibility. We support the West African Insurance Institute in Gambia and also the Chartered Insurance Institute of insurance issues of Nigeria.This is in a bid to make sure that insurance education is promoted at all levels. We are happy with the job that they are doing at all these levels. In addition to that, we have continued to enjoy partnership from multilateral institutions.

The International Finance Corporation (IFC) and African Re combined have assisted or supported us to create a kind of a human capital development approach to be able to deal with the challenges brought about by the climate change in developing appropriate products.Training is ongoing. As a responsible regulatory body, we have a mandate to create an atmosphere that is conducive for the operators – an atmosphere that will enable the public to benefit from the insurance offers that are put on the table.That’s why we are there.Therefore, when I came into the office in 2019, we had to pursue an agenda of comfort for the staff. Looking at the emoluments, we are trying to come close to what the other regulators are doing. Before now we were far away, but I think we’re reasonably close. We’re not there yet, but we are reasonably close.

On compulsory insurance, what mechanisms have been implemented to further increase market penetration?

We’ve done a lot in terms of sensitisation. We realise that as a government institution, we may not be able to do so much sitting in Abuja, or in Lagos. We need the instrumentality of the states to enforce some of compulsory insurance. What do I mean by this? I’m talking about the motor insurance Third Party policy, building under construction, public buildings, professional indemnity.

All these are compulsory insurance. We know that if we don’t partner other regulatory bodies, and states, it might be difficult for us to maximise the benefit of enforcement. We have visited Ekiti, Kaduna and Katsina states.  In all of these, we have been trying to preach the gospel of insurance to a larger sense and it’s good. It’s been quite rewarding.

Of course, we have larger goal, emphasising and bringing to the fore the issue of financial inclusion. We understand the structure of our population, predominantly in terms of the income parity; there are more of people at the lower end of the pyramid. And, therefore, we have encouraged our operators to develop products that will financially include micro insurance, for example. Our responsibility is to licence institutions and give them authority to go there and sell the same thing.  We have done also for ethical products. I’m talking about the Takaful products. We have licensed some institutions. We realised that we needed more looking at the size of Nigeria.This is the biggest economy in Africa. We realised that we need to probably spread ourselves a bit wider and that is why two years ago, we licensed five additional companies. Until then, the last reinsurance company that was licensed before then was about two years ago.

Let us talk about the assets and premium level in the industry.

In 2018, when I was Acting Commissioner, I think we were doing about N500 billion. Last year, the market recorded about N730 billion. I’m still not satisfied with that, because my target really, before I finished my first term, is N1 trillion in premium. Of course, the assets also moved from about a little above N1.3 trillion in 2018 to about N2.5 trillion in 2022. I’m talking about the total assets, it moved about N1.3 trillion in 2018 to about N2.5 trillion in 2022.

We should begin to move higher in terms of premium volume. We are pursuing some initiatives vigorously. I will also say that our methodology is also changing. Globally, the world has moved towards best supervision practices. We started that last year. If you want to trade majorly as a motor, third party insurance company, you can continue to trade within your level of capitalisation. But if you want to trade as an oil and gas insurer, where the sector is characterised by highly volatile businesses; you also must provide the needed capital to run at that level.That is where we’re going. So, one cap fits all will no longer be the case and, by the grace of God before I finish my tenure, it will be operational.

In fact, this year, we will we be closing on that. We have enjoyed partnership with some of the multilateral institutions. FSD Africa has been quite instrumental and supportive in our quest to evolve a risk-based capital regime.

Also, we did a recruitment, I think,  in 2020.The young guys that came into the Commission, as a result of this, have been making their mark. I can actually tell you that they are the future of the commission. They have been doing very well in their different departments.

The founder and CEO of Personal Transport Nigeria, Temi Olukoya has addressed the notion that the brand is meant for kids as it appears it deals solely on toys.

According to Olukoya,l: “Personal Transport Nigeria is not all about kids but adults as well. It’s more described as leisure rides for kids and Adults. As we also sell big machines like beach quad bikes, electric scooters and electric bikes.”

“The mission behind Personal Transport Nigeria is in the name itself. The big idea was to have a business that won’t limit me, to trade in anything that has to do with personal transportation . I see Personal Transport having stores across the nation. Currently, we are in Lagos and Abuja. Our goal is to set the pace. We constantly source for uncommon products and capitalize on them before they becomes common,”

Olukoya stated that she began the business in 2015, registering it as Personal Transport Sales and Services.

Apart from its physical presence in Lagos and Abuja, Personal Transport Nigeria, is a brand that has become hugely successful on social media, as @personaltransport_ng with well over a100 thousand followers.

The Chief Executive Officer submitted that the business has been smooth in spite of myriad of challenges crippling the business environment.

“The business is quite a smooth one and the challenges we usually have are the same challenges most business in Nigeria face. These include epileptic power supply, unstable dollar rate, logistics company delays and unreasonable import duties,” she stated.

Temi Olukoya stated that one of the reasons the business is smooth is as a result of little or no competition in the business. She said when she started out, very few people were into the business, and her focus was on products that were not common and unique.

” I started with importation of hoverboards and when the trend started fading and bad reviews abroad started affecting the sales I was quick to diversify into other products. I started importing kids’ cars , Quad bikes and scooters with my profits from hoverboards. Kids’ cars were another new innovative products that took the business to a higher level because I capitalized on a non competitive products as at then. My client base became so large and by 2017 I moved to a bigger store in Lekki phase 1, Lagos, a more strategic location which even made my client base larger,” she said

Prateek Suri is the Chairman and Founder of Maser, a manufacturer of smart TVs and a thought leader in technology, retail, and AI. His expertise is sort after by leading think tanks and institutions across the world. Suri delightfully discusses the global tech layoffs in an interview. Excerpts:  

Morningstar said that more than 67, 000 global tech-sector employees have lost jobs in 2023. What is your take on this?

Layoffs are tough decisions and very painful, any way you look at it. But we are seeing inflation, supply-chain problems, and geopolitical turmoil depressing revenue growth for tech companies. This isn’t changing in the short term. I think that’s the reason why the CEOs have resorted to reducing headcount—with massive layoffs even beyond technology into the financial space—to bolster their balance sheets. 

Some of these companies are going to be streamlining their products and portfolios and very importantly concentrating investments on the areas where they can clearly have the most positive impact. IBM and Intel, both missed their cash target, Intel revenue is said to be down by 20%. Yet IBM could be hiring for client-facing research and development. It isn’t all doom. It is hoped that as tech companies become more trimmed and smarter, they would be able to take on the fierce competition showing up everywhere. 

With these global tech layoffs, where do you see the technology industry headed? 

These are chaotic times for the technology sector and the global economy. There is an ongoing global and local reset in how the foundations of the global economy work. Fear of a downturn is making companies become cautious in hiring. 

As a matter of fact, this offers global tech companies the opportunity to rebalance their organizations, push for further investment in key priority areas and so grow their margins. This rebalancing will include talent shift options and restructuring. With gains in operational efficiencies and reduced operating costs, they can better align their workforce with current business needs, and finally, they would be prepared for astronomical growth in the years ahead.  

In all, I see a boon for startups, talents, and innovations.

You mentioned a boon for startups, talents, and innovations. How does this tech layoff impact innovation and talent boon for startups and small businesses?

This is the best time to launch your startup idea after a layoff! 

Venture capitalists are targeting laid-off tech workers with early-stage funding rounds that could create the next generation of entrepreneurs and unicorns. Take, for instance, Google, it is a global house of massive talents in engineering and product innovations. Google’s parent company, Alphabet, cuts will affect recruiting, engineering, and product teams. 

At last, top talents can confidently move in the direction of their dreams and ambitions. Small businesses can access talents including startups. 

Recently, San Francisco-based Day One Ventures launched an initiative in November to capitalize on this, by funding startups founded by people who had been laid off from their tech jobs. It received over 1000 applications, mostly from former Meta, Stripe and Twitter workers, according to Reuters and The Australian Financial Review. We should keep our gaze on this.

Some shareholders and hedge funds still think the tech CEOs aren’t doing enough to balance their sheets. After these massive layoffs, is this argument still valid? 

Some investors are worried that global tech companies are too chubby and still have more fats to chop off. I think these shareholders want them to be financially efficient. 

I think these shareholders want a shift. they see an urgent need for corrections, especially looking at the underperformance of the tech stocks and the need to shutter down promising tech bets. Remember, Alphabet has been down by 26% in the last 12 months. 

If you were to advise those affected by these layoffs, what would you advise them to do now? 

I would advise them to look within themselves and team up with their former teams to explore opportunities that could help them make a difference in the world.

The super-talented engineers and product experts have been poached already. It could be a time to start building oneself and the startup dream. Or to learn new skills. 

As this tech layoff rages on, what areas do you think these talents should focus their entrepreneurial energy on? 

The world is moving into a sustainable future. Our best talents should be focused on addressing climate change. As the layoffs impact engineering and product teams, they could team up to address difficulties in neurosciences, cyber security, data privacy, and very much on stuff like food, energy access, and aging.  It is time again to reconstruct the foundations of the global economic systems. This doesn’t exclude political innovations so we can build a prosperous future for all.

Associates and friends have described business Mogul Nwaogwugwu Francis Udochukwu aka Vintage Interiors as born philanthropist.

One of them, Francis Ibe, said Nwaogwugwu cannot stop his philanthropic lifestyle for few ungrateful persons, while eulogising him.

“He has done a lot for people but you find some who do not even appreciate while others feel he is not doing enough.

“We have encouraged him as his friends not to give up on people because there were times he wanted to stop but since we’re practicing Christians and our parents taught us to always do good, we urged him to keep the flag flying.

“We’re humans and when people do not appreciate your little efforts, you can tell how you feel about it, irrespective of your faith,” Ibe stated. .

“When you see those characters, you have to ignore them and understand that there are others that genuinely need to be touched.

“Philanthropy is in Nwaogwugwu’s blood. He’ll continue to do it in service to mankind and to the Glory of God, who provides the resources,” another business associate said.

The MD/CEO of Karabow Group and Wisdom Smart City, Mr Wisdom Kwati, has bagged the national business award in recognition of his effort and commitment to leveraging new technologies, smart thinking and optimisation of the existing buildings to accelerate sustainable development in his community.

It came barely days after bagging the award of most respected real estate CEO in Nigeria by Business Executive Nigeria in December.  

Kwati was bestowed with the award with other developers who have created a mark in the building industry at the maiden edition of the Annual Recognition of real estate developers in Nigeria.

According to a statement, the event held in Lagos and attracted most influential players in the building industry, politicians, and several personalities in the business space.

Read Also: Wisdom Kwati awarded Nigeria’s most respected CEO in real estate

Kwati said:  “I  am delighted and humbled by this recognition. The year 2022 has been a fantastic one for Wisdom Kwati Smart City, to receive further national recognition, after being awarded Most Respected Real Estate CEO in Nigeria, is a great feeling. 

“I am overwhelmed and humbled by this recognition, and I appreciate my team, customers and stakeholders for their trust in Wisdom Kwati Smart City which has helped us get this far.”

He added: “When one is recognized by his contribution to his community, the world announces you. we are just starting I have always aimed for excellence through persistence, hard work and doggedness. 

“The best is yet to come and as a firm we are poised for another year of growth, with new real estate projects.

“Our mantra is to deliver value to our stakeholders, as a team we are committed to providing best-in-class service to our new and existing residents, through scale, innovation and collaboration”.

Wisdom Kwati Smart City, a subdivision of Karabow Group was founded in 2020 in Abuja, Nigeria, by a renowned software engineer, Mr Wisdom Kwati, who is passionate about building a sustainable society that drives urban development through the integration of Information and Communication Technology (ICT) solutions to real estate developments across the continent. 

CEO of Sujimoto Construction Limited Dr Sijibomi Ogundele has congratulated Mrs. Ajoritsedere Josephine Awosika on  her 70th birthday. He described  her as a woman of integrity, diligence and his mentor.

In a statement, Ogundele extolled the virtues of the Access bank Chairman. 

He said: ‘’A fundamental secret behind every successful person, especially those whose beginnings were rooted below the upper-middle class, is to have a mentor. The idea is not just to have any mentor but one who speaks on your behalf, defends you even in your absence and puts forth your name in the boardroom of life. While you have everything it takes to become a successful person – which is the currency of capacity, you must never downplay the ultimate need – the currency of association. 

Read Also: Honorary degree for Sujimoto boss

“Mummy, you have spent  seven decades on earth and counting and it is very impressive that you are always remembered for being a woman of integrity and diligence. I always long for moments with you as even in friendly conversations, you are always giving vital lessons for corporate growth and your constant reminder that young entrepreneurs are the future of the next generation, and how integrity should be the foundation we must always stand on.

“I love how you emphasise that to become like the Dangotes, the Adenugas, and the Awosikas, we must have a strong level of integrity, make sure that quality is the backbone of whatever we are doing and we must take relationships and building bridges as part of our essential ingredients. 

“I also consider myself a son to you and a brother to Dr. Tola Awosika, and this is why today, I join the entire nation as we celebrate a gift to our nation – the Chairwoman of Access Bank Plc, the Chairlady for eradication of polio in Nigeria, former Permanent Secretary in the ministries of Internal Affairs, Power and Science and Technology, my mother, mentor and friend.

“Thank you so much for all you do and may the Almighty fulfill your desires and give you long life in good health.

“To the Chairman of all Chairmen, Dr. Ajoritsedere Josephine Awosika Happy 70th birthday!”

A renowned technology entrepreneur and philanthropist, Dozy Mmobuosi, has unveiled the Dozy Mmobuosi Leadership Centre (DMLC), housed in Oxford, United Kingdom.

It will welcome its first African leaders in February 2023, with the aim of developing their skills to help them transform their private and public sector services.

The cohort will experience a world class month-long in-person programme.

The selected participants will be immersed in a learning, coaching and collaborative programme with support from world leading institutions such as the University of Oxford and leading personnel from the world of business and government.

Each year, the innovative programme will develop the skills of over 35 outstanding leaders from Africa.

The centre will also be used throughout the year as a meeting point for world leaders, researchers, and for high level events.

Participants will undergo rigorous coaching in key areas including future technologies, artificial intelligence, robotics, leadership; entrepreneurship; capital raise and finance in order to enhance their knowledge understanding on how they can embrace these tools to transform the societies and industries in which they serve.

The DMLC, will be supported by Rt. Hon. Mark Simmonds as its Chair. Simmonds previously served as the Parliamentary Under Secretary of State at the Foreign and Commonwealth Office, Minister for Africa the Caribbean, international energy and climate change from September 2012 to August 2014.

Simmonds has also Chaired the UN Security Council on two occasions.

Simmonds said: “The Dozy Mmobuosi Leadership Centre is a transformational and innovative mission to provide African entrepreneurs and sectoral leaders with access to high level motivation and mentoring of next generation leaders.

“The Centre will provide the foundation to drive impact and nurture future leaders in global society.’’

He added: ‘’The programme based near Oxford will enable these outstanding Africans to develop and enhance skills in leadership, governance, motivation, finance, technology and innovation.

“It will provide access to some of the world’s most inspirational leaders, ensuring enhanced human capital of young Africans to help their businesses grow and to accelerate Africa’s economic and social development.’’

The founder of DMLC, Dozy Mmobuosi said: “The role and timely launch of this Leadership Centre has never been more important. The climate in which we find ourselves is one of unprecedented uncertainty for the developing world and Africa in particular.

“The DMLF will play a key role in developing high quality accountable leadership in Africa and will seek address the most complex and difficult of societal issues.

“Mark has already demonstrated his passion for Africa and good governance and will no doubt be a great asset to the Leadership Centre whilst also listening closely to others to help build a clear vision for the future of the organisation.’’

Business expert and car dealer Ambassador Lilian Nwankwo has been honoured by Car Dealers Association on her distinctive service.

The award was conferred on Nwankwo for her promptness in service delivery and feedback from clients.

The event, which took place in Ikeja, Lagos attracted top CEO, business moguls and owners who were also honoured.

Expressing her joy, Nwankwo said she was delighted to be honoured by colleagues, for her steadfastness and commitment to service.

“I’ve done so much in helping people, and sometimes, going out of my way, so awards like this, will spur me to do more,” Lilian said.

The CEO of TMT Travels and ToursIfeanyi Onwukwubri has commended clients who patronised the firm in 2022.

Onwukwubri appreciated them on his social media page, thanking all sincere clients who found their brand worth of patronage.

He said: “There are lots of travelling agencies, so, people can go to anywhere they want, as long as service is being rendered to them.

“When you have a client come to your company, you have to treat such person right, because without the client, you won’t be in business, he said.

“For clients to be choosing our agency, it shows how far we have put in our commitment and service delivery.

“No one walks into our company, and will not have a good testimony, because, we understand what Clients’ satisfaction is.

“I am saying thank you to all our clients, who stood by us, we cherish them and wish them a better year in 2023,” Onwukwubri stated.