The Nation Newspaper

Category: Business

  • Brokers to partner agents on micro insurance

    Insurance brokers initially opposed to the revival of the agency system introduced by the National Insurance Commission (NAICOM) are ready to work with the agents.

    A source, who asked not to be named, said brokers were working out ways to partner agents to harness the enormous micro-insurance opportunities at the grassroots.

    NAICOM introduced the agency system to expand the insurance market and to bring its services and benefits nearer to a greater percentage of the population.

    A source at the Nigerian Council of Registered Insurance Brokers (NCRIB) said some brokers were looking at how they could partner, or synergise with some agents. He added that the brokers were looking at how they ccould integrate the agents under their brand to reach the grassroots.

    Worried by the untapped micro-insurance opportunities, put at over N60 billion, NAICOM said it was working on a draft guideline for the entrenchment and development of the business.

    Commissioner for Insurance Fola Daniel said the draft guideline on micro-insurance was being exposed to the industry, experts and other stakeholders for their input and contributions. He said, thereafter, the final draft would be drawn and released to the market.

    He said the commission intended to collaborate with other regulatory agencies in achieving the plan.

    He said: “To underscore our commitment to the development of micro-insurance, the commission has conducted a nationwide diagnostic study on micro-insurance in collaboration with GIZ, a German agency for sustainable development, Access to Insurance Initiative (AII) and local consultants.

    “We have also put in place a draft guideline for micro-insurance business. The draft is being exposed to the industry, experts and other stakeholders for their inputs and contributions before the final draft will be drawn and subsequently released to the market,” he said.

    Daniel noted that the initiative is part of the commission’s drive to open up and develop the insurance market at the grassroots, and, by extension, increase the sector’s contribution to the Gross Domestic Product (GDP).

     

  • Sterling Bank promo produces more millionaires

    Sterling Bank promo produces more millionaires

    Sterling Bank at the weekend gave out cash prize of N2 million to four of its savings customers in the third monthly draw of the bank’s ongoing Savers’ Promo held in Lagos.

    The four customers won N500, 000 each, while 10 others won Home theatres and refrigerators.

    Those who won N500,000 from the four regions of the country are Babalola Sunday Lamidi from Lagos, Nwaogbu Jack Okechukwu from Yola, Sulaimon Abioye from Warri and Mr and Mrs Emmanuel Eze, a couple, operating a joint account at an Ibadan branch.

    Speaking at the draw held in Lagos, the Group Head, Liability Products and Bancassurance, John Akingbade said the promo is designed to excite and encourage the bank’s loyal customers. The draw , he said, brought to 42, the number of winners in the promo so far with 15 customers wining home theatres, 15 winning refrigerators and 12 winning N500,000 each.

    He noted that since the promo began two months ago, customers have been calling and sending text messages to the bank staff, appreciating the rewards and pledging their continued loyalty to the lender.

    According to him, the bank had embarked on the promo to drive a savings culture among the unbanked within the population, as such would further help achieve the Central Bank of Nigeria (CBN) policy on financial inclusion and cash-less policy.

    Akingbade said the bank would continue to delight its customers by delivering quality service to them at all times. He said the bank has several products that would fit into the personal needs of the customer and enable them participate in the promo.

    The Sterling Plus, he said is one of such products designed for customers who need savings account but would like to lodge cheques and dividend warrants into the account. The account, he said, also has an attractive interest rate as well as other benefits.

    He explained that customers are expected to open new account with minimum initial opening balance of N5,000 and maintain a minimum deposit of N100,000; N50,000 or N25,000 for at least three months during the promo period.

    This qualifies them to win the star prize of Sport Utility Vehicle(SUV), second prize of N1 million and third prize of N500,000 respectively.

  • Six questions to ask before you change your career

    So, if you are feeling stuck and starting to dread going to work every day, a career change would seem to be the answer. You can also get a career change through employment agencies. You can dream of doing something better or more important and probably making more money too. But are things really that much better on the other side of the hill?

    You need to ask yourself some crucial questions, answer them truthfully, and only then do a self evaluation of where you are now and what you can improve with a career change. So, is it time for a change?

    These are the six key questions you should be asking yourself:

     

    Why do I want to change careers?

     

    Try to be very clear about why you want to leave your present job so that you are able to avoid whatever is the root of your discomfort in a future job. The most common reasons people quote are that they:

    • Feel bored and frustrated, from being in the same job too long;

    • Have lost interest in the work and its importance;

    • Feel undervalued or not important to the organisation;

    • Believe they are being underpaid for the work they do;

    • Dislike changes made after reorganisation and restructuring;

    • Are making no progress, lack any future prospects;

    • Feel as if they are in ‘dead men’s shoes’;

    • Don’t get on with their colleagues or managers;

    • Simply need a new challenge or fresh start.

     

    Do I really want to change my career?

     

    Is it really your career that you want to change or is it something else associated with your job? Your boss for instance? What would improve your day to day satisfaction with your work? If it isn’t your career as such, but just something to do with your job then a career change may not be the answer, when what you need is to continue your career, but with some changed conditions.

    Perhaps you could satisfy your desire for career change by:

    • Changing to another job in the same sector but with a different employer;

    • Moving from the private to the public sector where the career remains but the principles/values may be different;

    • Negotiating with your employer for a fairer salary package;

    • Applying career management principles to seek some agreed changes with your present employer.

    The notion of career change throws up all sorts of ideas about doing something completely different so what does your ideal role look like? Are you able to describe it in terms of the level of responsibility you want; the amount of influence; strategic input; work structure; internal/ external contact; reward and recognition; status; pace and pressure that make for a satisfying and challenging job role?

    What about location, permanent or contract; work / life balance. How do family, school or spouse career issues affect you? What organisational culture suits you best?

    When you’ve defined your ideal role with as many dimensions as possible, you’ll always have something to compare new opportunities against. This type of benchmarking helps you avoid the rushed and possibly regrettable later decision being made.

    So, you can only decide on your career options when you’ve thought about:

    • Exactly what you want;

    • What you really enjoy doing;

    • What you’re good at and want to continue doing;

    • What’s important to you;

    • And how all this affects those close to you.

    • To give you my personal example:

    What transferable skills do I have?

     

    You should spend some time to analyse your skills gained through every job, course or leisure activity you have been involved with. These are the transferable skills that are potentially of interest to most employers. With the following list of key skills, try to record examples from your work experience, college or other academic studies and don’t forget to include aspects of your social or home life.

    a) Functional: Analyse your skills which you use to deal with the world around you e.g. people, data, things, ideas.

    b) Personal: Analyse the skills that you use to manage yourself.

    c) Technical: Analyse the skills that you use and develop for aspects of your job. I recommend that you read this section carefully because you will need to be able to write a persuasive career change cover letter to accompany your CV or Resume when you are ready to start applying for new jobs in your chosen career.

    d) For improving all areas of your life, you may need to think about your own Personal Development needs as well.

     

    How do I want to use my existing skills?

     

    You may not need to go for a complete career change where you do something different. Because most other roles or jobs overlap in their skills requirements, you can almost certainly use the knowledge, skills and capabilities that you already have. Network with other people to find out if there are opportunities in your own line of work: personal contacts, past colleagues, customers or suppliers or members of a professional group you belong to. Nowadays, networking is a skill in itself and one of the most productive ways to find a new career or job.

    If you decide to go ahead with a career change, please make sure you go for something that you really are interested in, otherwise the same scenario will set in again and you will be back where you started from. Learn how to adapt your CV for a career change.

     

    Can I change career at my time of life?

     

    Of course you can!

    A career change is possible at any time of life if you have the desire and motivation to do it. A midlife career change may be just the right thing for you. Now, if you are over 50 and looking for a new job, you may well mistakenly think that everybody is against you or that there are no suitable jobs for older workers like you. I have thrown some light on what older workers, people like you who are over 50, can actually do to help themselves get back to work – even if you took early retirement.

    As you get older, new passions are often ignited and could be the basis for a new career. So, if it is time for a change read my latest article to help you decide how you can transform your dreams.

     

    What do I need to change my career?

     

    There are no secrets to winning a new job, but if you don’t follow an ACTION PLAN that WORKS, you may find it much harder to get the job you want. As a Career Coach and Job Search Expert I have developed a career counselling plan that thousands of men and women just like you have used and it has been proved to work!

    • You need to know what job you actually want;

    • You need to know how to find jobs; including the hidden and unadvertised jobs;

    • You need to know what skills are most in demand;

    • You need a first class CV or Resume;

    • You need customised cover letters;

    • You need to practise your job winning interview answers; and

    • You need to be determined.

     

  • NCRIB admits 32

    The Nigerian Council of Registered Insurance Brokers (NCRIB) has inducted 32 brokers into its fold, buoying its membership to 492.

    Its President, Mrs Laide Osijo, urged the new intakes to brace for the unfolding global and regulatory challenges confronting professionals in the finacial services sector.

    Mrs Osijo urged them to ensure that they operate within laid-down ethical and professional standards prescribed by the council, as well as other regulatory bodies to which they subscribe.

    “You are coming in at a time when insurance business and operators in Nigeria are being challenged by several factors, notably, public image and global regulatory prescriptions. You must strive to play above board.”

    She commiserated with families who lost their loved ones and valuables in the flood ravaging some parts of the country.

    She advised the government to evolve concerted and proactive disaster management strategies aimed at combating similar calamities in the future, as well as educating Nigerians on the need to avoid building their residences in flood-prone areas. She stressed the need for them to eschew habits that could make the society vulnerable to such disasters.

    Mrs Osijo said the industry could bring succour and mitigate losses that may result from such calamities, both at the individual and government levels when fully embraced.

    In a lecture on ethics and professionalism, the Deputy President, Ayodapo Shoderu, urged the inductees to be ingenious in developing products that meet the desires of the public.

    Shoderu said despite the social functions of insurance, operators must constantly bear in mind the need to entrench the practice in the minds of the public to reduce the image and acceptance problems confronting the industry.

     

  • 10 firms jostle for control of bond market

    10 firms jostle for control of bond market

    Three out of the 10 stockbroking firms that applied for the office of a government broker that would handle the retail end of the bond market have been shortlisted, The Nation has learnt.

    Out of this, one firm will be picked after the conclusion of the long exercise to get the best company for bond retail transaction.

    It was gathered that the shortlisted companies were found to have impeccable records by the Debt Management Office (DMO).

    The source said there was no lobbying among the companies that are jostling to conduct retail transactions in the bond market, adding that followed certain rules prescribed by DMO.

    The Director, Market Development Department, DMO, Mrs. Patience Oniha, said at the weekend that the body is in a process of appointing a government broker for the retail market. She, however, did not speak on whether firms have been shortlisted for the job.

    Oniha said applicants for the job would be interviewed to enable the DMO achieve its objectives of making retail market active and further deepening the market.

    She said the issues of deepening the market was paramount to the debt management office, adding that body has lined out different options to deepening the market. She said the appointment of a government broker is one of such options.

    She said all hands are on deck to select a competent and highly professional broker to handle the sales of bonds to retailers and further help in deepening the market.

    She said: “ We came out with advertisement on the issue few weeks ago. We stated the requirements that the firm that would manage the retail section of the market.

    Already, we have the primary market dealers (PMD) that trade at the auction and the secondary market. To encourage retail investors , we are in the process of appointing government broker that would handle the such operations in the bond market. All applicants for the jobs shall be interviewed to ensure that the best is picked to achieve success in the area of strengthening the retail market.”

    Oniha said efforts are going on the issue of sovereign guarantee for the critical sector of the economy, arguing that the scheme has various levels or stages.

    Also, the Managing Director, BGL Securities, Mr Sunday Adebola said primary dealers makers are dealing on bond on wholesales basis. Adebola said the development has prevent retail investors from participating at the secondary market.

    “By returning bond trading to the Nigerian Stock Exchange(NSE) platform, the retail investors would be able to participate in the bond market, and the landscape of fixed-income securities market will change positively.” he added.

  • RenCap: Banks not supporting agric

    Balance sheets of banks are not being deployed to support the real sector of the economy, especially agriculture, Renaissance Capital (RenCap), has said.

    The investment and research firm, said agriculture is among the least contributors to the banks’balance sheet, while major contributors to the industry loan book are the manufacturing, telecoms and general commerce sectors. The report highlighted that agriculture accounts for only one to five per cent of credit, yet it accounts for 40 per cent of Nigeria’s Gross Domestic Product (GDP).

    The report tagged: ‘Nigerian banks – Loan books under the spotlight’, said the lesnders’ balance sheets bear little resemblance to the real economy.

    It said concentration risk remains high, although there are material differences between the banks. “We measure concentration as the weighting of the top four sectors in the total loan book. On this score, Zenith Bank has the lowest concentration, while Access Bank has the highest,” it said.

    RenCap said non-performing loans (NPL) ratios have fallen significantly post the Asset Management Corporation of Nigeria (AMCON) clean-up in 2010 and 2011. As a result, the firm raised fears that the current trend of below-average impairment charges could persist throughout 2013.

    This, it said, will boost earnings and returns considerably above their long-term averages in the short run, adding that the impairment charges may begin to normalise in 2014.

    RenCap, however, placed buy on Zenith Bank, GTBank while it highlighted that in tier 1 banks, Access Bank has been a recent laggard in terms of stock performance, but still placed a buy rating on the rating. Within the tier two banks, Skye Bank was picked as a preferred stock, and also got a buy rating.

     

     

     

     

     

  • ‘No fund to payN1.44b teachers outstanding allowances’

    The Federal Government has no funds to pay teachers’ N1.44billion outstanding allowances owed them for the 2011 Millennium Development Goals (MDGs) training programme.

    The Minister of State for Education, Chief Nyesom Wike, stated this in Abuja at a meeting between the leadership of Nigeria Union of Teachers (NUT) and National Teachers Institute (NTI).

    He said the meeting was part of efforts to resolve the dispute between the two groups.

    NTI in 2011 trained 125,000 teachers under the 2011 Federal Government MDGs teachers’ training.

    The NUT leadership accused the institute of paying each trainee only N2,500 as stipend for fare and accommodation for the six-day training instead of the approved N14,000 per participant.

    The National President of NUT, Mr Michael Olukoya, had accused NTI of shortchanging the teachers of about N11,500 each, which was the balance of the N14, 000 per teacher.

    However, Wike said he had written to the Ministry of Finance for the balance.

    “The reply I got indicated that Federal Ministry of Finance has no fund now to pay the outstanding balance.

    “I just want to make it clear that the funds were not withheld by NTI as teachers have alleged, but I advised NTI not to repeat similar mistake by getting involved in a programme without adequate cash-backing,” he said.

    Wike appealed to the teachers for understanding and urged them to participate in this year’s programme. He said efforts would be made to pay the debt.

    The minister also said he had also written to President Goodluck Jonathan on the issue as directed by the Ministry of Finance because last year’s budget had been mopped up.

    He noted that budgeting had been one of the problems in Nigeria due to the slow release of funds.

    “I want to assure all teachers that this year, training will be based on the available resources,” the minister said.

    Olukoya said unless the arrears were paid, teachers would boycott this year’s training.

    He said the mandate of the NUT National Executive Council was clear that the N11,500 balance owed each teacher must be paid for teachers to participate in the programme.

     

  • UBA staff donate to flood victims

    UBA staff donate to flood victims

    Staff of United Bank for Africa (UBA) Plc have provided relief materials and other items to flood displaced persons in Delta State.

    In a statement, the donors said they were moved by the plight of victims of the recent flood in parts of Delta State and decided to support them.

    Specifically, UBA staff at Ughelli mobilised funds through voluntary contributions and bought relief materials for displaced persons at the Oharisi Primary School camp caused by the recent floods in the state.

    At the Oharisi Primary School Camp for Flood Displaced Persons where the exercise took place, the Regional Bank Head, Mid-West, David Isiavwe, conveyed the sympathy and message of hope from the management of the bank.

    He noted that management and staff decided to visit the camp as part of being socially responsible and offering a helping hand to the affected communities.

    “The UBA team took a tour of the camp visiting the various skill-acquisition centers that are training the youths and women on hair-dressing, tailoring, bead-making and other vocational trades. Items presented include, several bags of rice, garri, toiletries and ram,” it said.

    While thanking the Bank for the visit, the Camp Coordinator noted with delight and much appreciation that UBA was the first of all financial institutions in Nigeria to visit and give support to the flood victims.

  • Deloitte opens academy to support IFRS

    Deloitte opens academy to support IFRS

    Akintola Williams Deloitte has launched one of its most important projects to support its role in International Financial Reporting Standards (IFRS) with the unveiling of Deloitte IFRS Academy in Lagos.

    In a statement, the firm said the office would help trainees to appropriately apply IFRS to their various functions.

    Deloitte IFRS Leader and head of faculty, Uwadiae Oduware, said the academy will continue to run until IFRS is fully implemented in Nigeria. The Academy is the platform for finance professionals and graduates, executives and organisations in need of IFRS training and offers a blend of theory and practices to enable participants apply the standards, as well as the underlying concepts and principles.

    “Our approach to IFRS learning is interactive and is based on skills transfer. In drafting the training curriculum, we recognized that learning needs will vary based on individual’s role, knowledge level, experience and industry. We therefore designed four distinct programmes to meet the learning needs of various classes of people as follows,” Oduware said.

  • ‘Nigeria needs to develop local production capacity’

    ‘Nigeria needs to develop local production capacity’

    Founder and Managing Director, The Capital Markets Academy, Mr Delme Thompson, is a financial expert. A former head of training at the London Stock Exchange (LSE), he has worked with top executives of various stock exchanges, regulators, government bodies and several FTSE 100 and global corporations across the world in designing and implementing major changes in the financial market and the economy. In this interview with Taofik Salako, Thompson speaks on the role of market makers, the place of efficient regulators and the need to lay a very solid foundation for the Nigerian financial market and the economy.

     

     

    What’s your first impression about Nigeria?

    Interesting! There are challenges and it’s not like any other country. But there are a lot of people here interested in learning and training, so we have like-minded people. But careful, gradual steps now will yield results in the months and years to come. It’s important we don’t rush in with a big initiative; it’s important we understand what the market wants and get all these together to build a solid foundation to be able to go forward.

    I have interacted with people from different backgrounds. The interest is high and that’s really great. It’s been really great; we have been talking about the Nigerian market and how things work around the world, not just the London or New York market. We have been looking generally at the principles – these are how things work. Why don’t you look at it from these perspectives? It’s been an interesting experience.

    Given your experience with other emerging markets, what do you think Nigeria needs to unlock the potential of its market?

    From what I have seen over the past few days, about the people, the processes and things going on, Nigeria is Nigeria. It’s not like any other country and it shouldn’t be treated like any other country. But there are similarities in terms of when you look at the sectors, the population of the whole business community; the ones who benefit most have always been the ones most willing to engage the process and they are willing to engage in conversation with people who are driving the change whether it’s the securities regulator, the central bank, the advisory community, the stockbrokers and others. The ones who benefit are the ones who make themselves available. You cannot sit on the sideline and expect growth; it comes with the responsibility to participate.

    From my experience, getting the right skills is very important to the growth cycle. Training goes first. You have to start educating and growing skills of the people. That comes down to the responsibility of the management to know what skills are required and what you need to acquire these skills, whether internally or externally. It’s the responsibility of the owners of the companies to ensure their staff are equipped just as it is the responsibility of the parents to guide their children. So, knowledge and skills come first, there is no good in having good roads when people don’t know how to drive.

    If you look at initiative such as market making, it provides liquidity for the market. The market making initiative in the Nigerian market has started well, the volume is still small but it’s going to grow. But initiatives like market making will work if people understand what market making is and have the confidence in the process. It all comes down to confidence. To increase volume you need confidence- confidence in the market making itself, confidence in the companies, confidence in the market operators; that’s one key element.

    How do you see the introduction of derivatives and other hybrid instruments?

    I think the key is about understanding the market itself. Sometimes you can be ahead of the game. You really have to be sure about the timing and understanding that there will be demand for these products in the marketplace. If we provide this initiative, how are people going to use it? What will stop people from using it? But what will facilitate acceptance is understanding. Whatever you are doing, it’s important to get the audience to understand it very well using all available means of communication. Then, there has to be proper regulations in place.

    For an emerging market such as Nigeria’s, which one is preferable, government-owned or private-owned stock exchanges?

    My experience generally is that if a stock exchange is privately owned, you see more of commercial mindset; where things are done based on business needs, business requirements. Quite often, things are quicker and clearer. You know what they stand for, there are clear strategies led by goal-driven people and they achieve what they are going for. I see some of these in Nigeria. I see clear strategies; a lot of efforts going on. I think if the Nigerian economy has a bright future, the stock exchange will be a central part of it.

    Looking at the economy, what do you think are needed to firmly place it as a leading emerging economy?

    I think you are on the way there. There are tremendous foreign interests in Nigeria. But I think the key is to create the middle class in Nigeria. Foreign investments help in growing the economy but there are also things that must backflow into local investments by creating opportunities for Nigerian businesses to engage with international businesses and create real jobs in Nigeria. By this, you are sowing seeds, you are using this year’s harvest to plant next year’s, we need to find balance between international money coming in to generate profits in Nigeria and what will create jobs and investments in Nigeria. We need to find that balance between international and local trades and have money plough back into the Nigerian economy. You will notice that you will have more people engage in such process, it won’t be a drive for profit repatriation, you are certainly engaging a lot of local people in the growth.

    It’s all about getting a model that ensures Nigeria’s wealth is ploughed back from years to years, for generations to come. Then, there is the need to develop the ability to produce in Nigeria; take your own raw materials and produce your own goods. Not just exporting cotton to import textiles but turning cotton into textiles. If we have the production base in Nigeria, that will help transform the economy.

    Talking about your own firm, what are your short, medium to long-term objectives in Nigeria?

    It’s always educating going to a country for first time. That enables you to fine-tune your plan. We are very proud of what we are offering as a firm, but we haven’t proved ourselves to Nigeria yet. So, the early engagement is about getting to answer a lot of questions that may be in the minds of the people- can we trust you? Are you here for the long term? Our plan is to work very discreetly, very carefully with the financial and business communities to identify things that the financial and business communities will like to see in Nigeria; to work with them to identify training needs and then build around these. Our plan is to produce training catalogue that will be made available to the Nigerian business communities so that people can choose which offerings they want and how they want these delivered to them.

    Ultimately, I will want to see a training academy, a world-class centre of excellence, established in Lagos. But the first thing is; we have to make sure our understanding of the Nigerian market is correct. We have to get credible feedback from the Nigerian community that what we have is actually what they are interested in. That will assure us that we have the right product. I will need to make sure little by little we build trust. I have lived all my life in London, taking the decision to come and invest in Nigeria is not what we made lightly; it’s not been an easy decision. There are sure to be bumps on the way, but we believe this is within the vision of our company, which was set up to help people change things for better. It’s not going to be easy, we know that from the onset, so we have to make sure we get things right.

    Several people are worried about the dominance of foreign portfolios, which account for nearly three-quarters of trades in the Nigerian market. How do we balance this to achieve stable and steady market growth?

    As I mentioned earlier, if you generate more internal wealth, there will emerge a viable middle class. Then, you can encourage the people to invest in their own market. But people are not going to invest unless they trust the market structures-the regulators, the companies, the brokers. If all the basic things are in place, they will invest. They also have to see the benefits. So, it’s all about creating the disposable incomes and also about educating people on how things work. Why should I invest my money in the capital market? You must show people why they need to invest in the market. Companies need to go out there and reaffirm their credentials, how their businesses work, their books and their strategies.

    What advice do you have for the securities regulators?

    The stock exchange is a market; it’s a market where people come to buy and sell shares of companies. It’s pretty much like the high-street market where people come to buy and sell a number of things. In building a great stock exchange, it’s really key to keep that simplistic summary in mind. So, if it’s a place where people come to trade, what will make them to come and do trades? Having the right control, keeping a safe environment, being transparent and efficient and getting all the right things in place. Given all these, people will come. Efficient regulation is key. Nobody is going to talk about regulator when things are going well, when everybody is happy. But when things go wrong, the first reaction is usually about where the regulator was when things were going this way. Regulations help to protect orderly market to ensure that individuals and companies behave themselves. Often times, when things go wrong, the first reaction may be bring in more rules. Yes, you may need more rules but it may also be that the rules are fine but you need more enforcement or you need better understanding of them by the regulator or within the community or both. I think it’s important people understands their roles and also that the community understand what they are doing.

    In Nigeria, we have more retail investors investing directly in the market rather than through collective investment schemes like mutual funds. But in most advanced and emerging markets, you see mutual funds playing bigger roles. How do you see this?

    For me, I am not for or against that. I think both form key parts. They are all key market participants. Again, it comes down to understanding and education. If you want people to invest through mutual funds, you have to show them the benefits in them; people have got to show their credentials and returns. Just the same if you want more retail investors to participate in the market. You need both to build a strong market.