The Nation Newspaper

Category: Special Report

  • We have policy against job loss, says Anchor

    We have policy against job loss, says Anchor

    Job loss in recent time has become a major risk for employees and this has resulted to their fear of the unknown, thereby reducing their productivity.

    But employees can now heave a sigh of relief, allay frustration and still able to meet their financial responsibilities should the job, eventually go as Anchor Insurance has developed a product called Anchor Loss of Employment Income Insurance Scheme.

    This policy will pay pre-determined income for a given period to any policyholder who loses his/her job, having paid the required premium while payment of premium has been structured  monthly, quarterly, bi-annual and yearly for convenience; hence employee can choose which one is suitable according to his disposable income.

    Any employee on this scheme who suffers job loss  will be indemnified for 24 months. This will enable the employee meet his financial obligations while actively searching for another job. Being the first insurance company to bring the product to Nigeria, our objective, among others, is to help the economy reduce the social ills and criminalities in our society which result from the job losses, the firm said, noting: “An idle hand is the devil’s workshop”.

    On the part of the employee, the product will help to protect financial loss, prevent frustration and psychological breakdown and among many other things, regains employee decency after job loss.

    The company has encouraged employee to take up this policy without delay as it is the only surest safety net, shock absorber that can cushion for the harsh effect of a sudden loss of job.

    Anchor Insurance remains focused to its vision: “To be the most innovative and preferred General Business Insurance Provider in Nigeria”.

    Living this vision was consolidated with the launch of its innovative retail product “Anchor Loss of Employment Income Scheme (AnchorLoEIS’’. AnchorLoEIS is the newest and latest solution to protect employment income, a safety net, shock absorber or cushion for the harsh effect of a sudden loss of job.

    One of the products displayed during the Awareness Campaign was the Auto Easy Policy, which is the company’s brand name of the Compulsory third Party Motor Insurance Policy.

    There are lots of fake insurance certificates being generated by touts and this is to the ignorance of the policy holders who falls prey, hence the campaign was meant to sensitise the public on how they can get genuine insurance policy and authenticate their certificate of insurance.

    This authentication is provided for on the platform of the Nigeria Insurance Industry database (NIID) of the Nigeria Insurance Association (NIA). To check the genuineness of your Vehicle Insurance certificate, go to www.askniid.org.

    Other products displayed ares Anchor Fire Insurance Protection Policy, Occupiers Liability Insurance, Professional Liability Insurance, Public and Product Liability Insurance, Personal Accident Insurance and a few others.

    The company was established and licensed in October 1989 and started operations in November of the same year. It was established by the Government of Akwa Ibom State in the South of Nigeria as a state-owned Insurance Company underwriting General Business (Non-Life) and Special Risks classes of Insurance with its registered office at 7/13 Aka Road, Uyo, Akwa Ibom State.

    The company attained the status of a composite insurance company in 1992 when it added life/pension class of insurance to its business portfolio. The regulatory body for insurance business in Nigeria; National InsuranceCommission (NAICOM) re-registered Anchor Insurance Company Limited in the status of a composite insurance company under the Registration Number RIC-072 in 1998.

    In 2007, the share capital of the company increased to N3 billion in line with regulatory directives. Following the regulatory-induced recapitalisation and consolidation, the shareholders fund of the company was raised to over N3 billion, which placed the company, among the recapitalised insurance companies in Nigeria.

    As at December 2016, the shareholders fund of the company stands at over N4.7 billion from the approved 2016 annual report and financial statement. The Management is made of a crop of seasoned and professional insurance practitioners with diverse experience in reinsurance, underwriting, banking and finance, loss adjusting, accounting, marketing, legal and auditing expert; this has seen the company grows in leaps and bounds.

    A vibrant Non-Life insurance underwriting firm with the total Assets of over N5.7 billion, Anchor Insurance has been fulfilling its obligations to its numerous clients through prompt settlement of claims. Between 2014 and 2017, the company paid over N1.8 billion in settlement of claims across different insurance policies ranging from fire, motor vehicle, oil & gas, Aviation to flood damage, theft, group personal accident, defaults on performance bonds and motor accidents.

  • Showcasing leading insurance firms

    Showcasing leading insurance firms

    There is poor perception of the insurance sector by the public. Despite efforts made by practitioners to change the image of the industry, most Nigerians still don’t have confidence in the sector. Many people do not know the benefits of insurance or where the closest insurance company is located. In this Special Publication on the insurance sector, The Nation showcases some insurance firms that can be trusted based on their financial results, prompt claims payment, good customer service and tailor-made products suitable for corporate organisations, households and individuals. Omobola Tolu-Kusimo reports.

    Many Nigerians do not have confidence in insurance policies and the reason is not far-fetched. Once upon a time, insurers either failed to pay claims promptly or renege on their contract with their clients.

    For the corporate entities, aside from the issue of trust, the sector didn’t have enough skills and capacity to carry their risks. Hence, some resorted to seeking insurance cover outside the country, while others did not bother to insure their businesses or assets.

    True, the sector was faced with issues of trust among the populace. It also had the problems of low level of appreciation of insurance and infiltration by quacks. This led to apathy towards insurance. Out of the population of 180 million, only 1.5 million Nigerians have one form of insurance or the other. Of the few users of insurance, some still have the highest level of dissatisfaction with the providers of financial services. The overall result of low patronage is the sector’s low contribution to the Gross Domestic Product (GDP) at less than 0.48 per cent.

    But the story has changed as insurance practitioners have been working hard to redeem the image of the sector. They now take claims payment serious, simplify the claims process for insured and pay promptly. They have also worked to improve their services and offer tailor-made products.

    Amid the hardship of recession in 2016, insurers helped restore businesses and protect families of insured Nigerians through payment of claims for losses worth N119.5 billion.

    This was shown in a report by the Nigeria Insurers Association (NIA) made available to reporters in Lagos.

    The amount was paid by 58 insurance companies that are members of the association. They comprise 15 specialist life insurance companies, 29 non-life insurance companies, 15 composite insurance companies and two reinsurance companies.

    A breakdown of the report shows that the 29 insurance companies offering non-life business paid N57.7 billion claims in the year under review, while the life business companies paid N61.87 billion.It also showed that the claims paid by the non-life companies increased from N54.65 billion in 2015 to N57.7 billion in 2016, representing an increase of 5.69 per cent while the claims for life companies increased from 50.5 per cent in 2015 to N61.8 billion in 2016, representing an increase of 15.84 per cent.

    Meanwhile, the non-life and life companies recorded about N315.97 billion insurance premium income in 2016.

    NIA Chairman, Eddie Efekoha stated in the report that the economy was confirmed to have slipped into recession for the first time in over two decades.

    According to him, this reflected economic shocks, inconsistent economic policies, and worsening security problems across the country, particularly the Northeast and renewed attacks on oil installations in the Niger Delta regions.

    The year, he said, was very challenging for the sector as it battled with low patronage, fragmented payment from major schemes, including government, as the slide in crude oil price resulted in downturn in earnings.

    He said other factors that the sector contended with include high inflation rate culminating in increased expenses, unfavourable foreign exchange spell leading to high reinsurance premium paid and claims settled on relevant portfolios.

    The regulatory body, the National Insurance Commission (NAICOM), in another report, said the sector lost N90 billion worth of insurance policies between 2016 and third quarter of last year as a result of recession, but the insurers still paid claims to insured Nigerians.

    According to NAICOM, the sector recorded a Gross Written Premium of N325 billion in 2016, but the figure declined to N235 billion by the third quarter of last year.

    Commissioner for Insurance, Mohammed Kari said the sector’s contribution to Gross Domestic Product (GDP), which defines insurance penetration level, stands at 0.48 per cent.

     

     The leading insurance firms

    In a Summary Report on Insurance Companies 2016 Financial Result, NAICOM said the performance of insurance companies was analysed based on various indices to determine the ones that made impressive outing in the year under review.

    The Nation brings to you some of the companies with good performance, prompt claims payment, good customer service and tailor-made products suitable for corporate organisations, households and individuals.

    Leadway Assurance Co. Limited, AIICO Insurance Plc, NEM Insurance Plc, FBN Life Insurance Limited, Consolidated Hallmark Insurance Plc (CHI), Wapic Insurance Plc, Law Union and Rock Insurance Plc, and Anchor Insurance Plc, impressed in their performance.

    In the report, the Life Business Statistics shows that the sector’s total Gross Premium Income (GPI) was N124.56 billion while gross claims paid stood at N67.2 billion.

    Leadway Assurance Company Limited led the pack with N31.58 billion, a GPI representing 25 per cent market share followed by AIICO Insurance with N22.17 billion representing 17.75 per cent.

    FBN Life also came in the top-performing companies with a N9.91 billion, representing 7.95 per cent.

    The statistics further shows that the Life companies paid huge claims. AIICO led the subsector with payment of N11.47 billion, FBN Life paid N2.06 billion and Wapic N0.66 billion

    The General Business Statistics shows that the GPI for the same period under review was N201.55 billion. Leadway Assurance had N21.54 billion, representing 10.69 per cent, NEM Insurance N10.62, representing 5.27 per cent, AIICO got N7.33 billion, representing 3.64 per cent, CHI had N5.71 billion, representing 2.83 per cent, Wapic had N5.21 billion, representing 2.59 per cent, Law Union had N3.96 representing 1.96 per cent and Anchor N1.96 billion, representing 0.97 per cent.

    The Non-Life companies also paid claims. Leadway paid N13.56 billion, AIICO Insurance N4.44 billion, NEM N4.13 billion, Consolidated Hallmark paid N1.76 billion, Law Union paid N1.45 billion and Wapic 0.07 billion.

     

    ‘Insured Nigerians should demand claims from insurers’

    The Executive Director, Leadway Assurance Co. Limited, Ms. Adetola Adegbayi, has urged insured Nigerians to demand their  claims from their insurers whenever an insured risk occurs.

    Adegbayi, who stated this during a chat,  noted that most Nigerians who purchased insurance policies were ignorant on when and how to make claims, adding that instead of going to their insurers to make claims, they bear the financial burden themselves.

    She said as a result of the fact that some insured don’t make claims, some overambitious  operators have cashed on this loopholes to rate-cut policies to unreasonable price, with the assumption that the insured will not demand for compensation.

    Because of the low rate they demand on their policies, she said, they, in most cases, outbid their competitors for businesses because their rates are lower and consumers always want to go for policies with lower rates.

    In the event of claims, she said, these overzealous underwriters do default, since the premium charged is not the actual value of the products.

    To this end, Adegbayi stressed that rate-cutting could be fought by Nigerians, if they begin to request for claims on their insurance policies, adding that when this happens, underwriters would sit up and charge the normal rates that could sustain them when claims arise.

    Explaining that an insurance company would be heavily sanctioned, if it defaulted in claims obligations, she charged Nigerians to report defaulting underwriting firms to law-enforcement agents, promising that necessary steps would be taken to pay claims to the aggrieved insured.

    She said policy prizing was becoming lower and the lower the policy, the riskier the business becomes, adding: “But for the mass market products, as the volume increases, the price reduces.’’

     

    Recipients of large insurance claims

    Insurance is an arrangement for protecting a person or entity from loss or risk. The aim is to restore the insured to his or her previous state only, not for profit or gain. The insurance contract should always be a contract of indemnity only and nothing more.

    According to the NIA 2016 Digest report, various insured organisations and individuals suffered losses in life and businesses, but were restored to their previous state.

    For instance, under the category of Motor Claims, AIICO Insurance paid Unity Bank/Ekiti Kete Mass Transit N17.72 million for five accidents, Dangote Cement Works-Ibese N4.15million for accident, Total Nigeria Plc N5.73million for Accident and Third Party Vehicle.

    AIICO also paid one Mr Asuquo N3.59 million for a Fire Incident, Animashaun Integrated Services N3.64 million for Accident, Christy Ndidiamaka N6.07 million for Theft, Rem-Bam Nigeria Limited N41.99 million for Accident and Theft.

    Julius Berger Nigeria Plc had an accidental damage and was paid N12.22 million by Law Union and Rock Insurance Plc. In addition, NEM Insurance Plc paid N21.80 million to Lanre Shittu Motors Nigeria Limited for Accident.

    Besides, NEM Insurance paid MP Infrastructure Limited N7.8 million for Accident, A.Y. Hussaini & Sons N6.17 million for Accident, Valentina Abuta N6.64 million for Theft, Isigwe Uzoagu N6.16 million for Accident and Ehido Nigeria Limited N5.23 million for Accident

    Under the individual life claims, FBN Life paid a family N18 million benefit for the death of one Mr. Mohammed.

    For the Group Life, FBN Life now FBNInsurance paid Prime Services FZE N4.16 million for death claims, Honeywell Flour Mills N11.43 million, Friesland Campina Wampco N10.51 million, Seplat Petroluem N4.034 million, Petroleum Technology Development Fund and Seplat Petroluem N4.27 million.

    Also under Fire Claims category, Law Union & Rock paid N4.04 million for Explosion, Harrow Park Mini Golf Course N4.5 million for Flood and Livesstock Feeds N4.84 million for Fire Incident.

     

  • Leadway presents low premium products for Nigerians’ daily need

    Leadway presents low premium products for Nigerians’ daily need

    The future of insurance industry lies in the retail market embedded in the grassroots. Despite the huge population the country is blessed with, low insurance penetration remains a major issue. The industry has been targeting the upper class, but the market now resides in the middle and the lower classes.

    This is why Leadway Assurance Co. Ltd designed tailor made and innovative products that can meet the daily needs of Nigerians. The company believes that this will go a long way in deepening insurance penetration. our visibility through effective use of technology.

      

    Our Products

    Hospital Cash: It is designed to provide daily financial benefits for hospitalisation arising from accidental injuries or illness of persons below the ages of 65 years. This plan can be accessed for as low as N500 premium per month.

    Home-Flexa: As the name implies, it’s a flexible insurance products that covers personal accident, property loss, property damage, private health plan and family benefit. This product is quite affordable especially for the low-income earners and with a monthly payment of N1, 074.00,  you can claim up to N220,000 benefits within the policy period.

    Motor insurance (Leadway Auto Plan): This is a motor plan which offers coverage against loss or damage to vehicles as well as damage to third party vehicles, properties and injury or death as a result of an accident involving the insured vehicle(s). There are different plans, which includes Silver, Gold and Platinum covers.

    Leadway BOSS (L-BOSS): This is a  product that protects small and medium-size business against various risks like material damage to business, burglary, employee medical expenses in one single plan; for a premium as low as N92,750 depending on the plan chosen. Nonetheless, flexible premium is allowed i.e. it can be paid annually, semi-annually, quarterly or monthly.

    L-Happy: This product protects all your assets including your household members against the risks of fire, theft, personal accident, medical expense etc. on your assets such as; Household building and/or contents, Motor, Personal Accident and Legal Occupier’s liability. It comes in Basic, Bronze, Silver, Gold and Platinum Plan covers with annual limit coverage up to N55 million. Premium can be paid annually, semi-annually, quarterly or monthly basis.

     

    Brief history of Leadway Incorporation

    Leadway Assurance Company Limited was incorporated as a limited liability company in 1970 and started business operation in 1971.  The company’s business operation started  in Kaduna from where it spread to other parts of the federation.  At present, Leadway has over 24 Branch Offices with Kaduna serving as the Registered Office and Lagos, the Corporate Office.

     

    The Founder

    The Founder, Sir (Dr.) Hassan Olusola Odukale’s vision was to build an insurance company that will serve the interest of insureds; responding to losses promptly and able to compete with other international insurers.  This vision was driven by a team that included some of its past chairman Alhaji Hassan Hadejia (immediate Past Chairman) Alhaji Mohammed Faruku and Pastor Jaiyeola Oni (former General Manager).

    Sir (Dr) Hassan O. Odukale insurance business started as an agency representing the interests of Royal Exchange Assurance Nigeria in the northern part of Nigeria. It later transformed to Gaskiya Insurance Brokers before it was re-registered as Leadway Assurance Company Limited.  During this time, Sir Odukale knew little or nothing about the sector. However, by dint of hard work, confidence and honesty Sir Odukale and his partners were able to build a business that has successfully outlived them. The highly honoured insurance practitioner passed on in 1999.  He was a Fellow of Chartered Insurance Institute of Nigeria (1995) and a Paul Harris Fellow.

     

    Business Operations

    At the beginning, the company had to survive on the goodwill of many companies including Northern Nigerian Development Company (NNDC), which gave it rent relief and Bank of the North. The Founder, Sir. Odukale also mortgaged his house to raise the N50,000 statutory deposit to Central Bank of Nigeria, (CBN).

    One of the major factors that kept Leadway afloat over the years was that Sir Odukale and his successors strategically, shifted the focus of the business from traditional motor and life business to achieve stability and phenomenon growth in other allied insurance businesses, even though motor and Life insurance still constitute a big chunk of its business.

    In late seventies the company started operating in Lagos market. The big break from a traditional retail underwriting business to the big corporate underwriter came in the eighties when it started working with brokers. The big break for Leadway was in 1982, when a Broker gave the company the opportunity to participate in the underwriting of some marine insurance businesses. However, one of these policies resulted in a claim of about $1 million.  To the surprise of industry watchers, the claim was promptly paid up. The success of this claim opened a new vista of opportunities for Leadway and drastically changed its business operations as it was able to penetrate into corporate organisations and the lucrative Lagos market.

    Leadership Change

    In 1994, there was a changed in the mantle of Leadership.  Mr. Oye Hassan- Odukale, became the MD/CEO and in less than 10 years, the company was repositioned to an enviable height through the discovery of other sources of investments outside the insurance sector. These includes investment in quoted government bonds, public and private companies.

     

    Financial

    Following the wise investment strategies, the company has always witnessed a steady growth.  For instance, the Net Premium Written grew from  N2.4 billion in 2003 to N3.3 billion in 2004, N3.9 billion (2005) and N4.9 billion in 2006.  Likewise, Profits after Tax over the same period moved from N306 million to N520 million in 2006. The Assets Base also witnessed a tremendous growth. From the N5.9 billion mark in 2003 to N16.4 billion in 2006. The company in the 2016 financial year paid N23.06 billion claims to Nigerians.

     

    Recapitalisation

    The company’s recapitalisation exercise did not impose any major threat to the company.  As at 31st December 2006, the company’s Shareholders’ funds was N9.4 billion.  This amount was internally generated through shareholders. The company’s attraction as a good investment was not limited to Nigerians, as International Finance Corporation (IFC) is currently an institutional investor ($13.2 million) in the company. As at 31st December 2012, shareholders fund stands at N11.7billion.

  • Insurance is evolving, says NEM MD

    Insurance is evolving, says NEM MD

    The Managing Director of NEM, Tope Smart, speaks on the comapany, the industry and the economy. Excerpts:

    The negative perception of the insurance industry by Nigerians seems to persist. Is there any reason they should change their mind?

    Yes, there is every reason Nigerians should change their mindset about insurance. The sector has come of age, even though we are still evolving. The major challenge we have now is low awareness and because of the past image of the industry, people are a bit sentimental. In those days, companies were not paying claims, people were not responsive and we had to go through hell before we got your claims paid. These were the kind of things that happened in the past and it had affected the people. As I said earlier, insurance companies have come of age. You can do transactions with insurance companies and get your claims paid. The service delivery has greatly improved, and, so I think, people should have the habit of creating confidence in the insurance sector that we have today.

    NEM seems to be growing rapidly going by your financial results and your headquarters edifice. How did you get to where you are, despite the challenges in the sector?

    We have been able to achieve a lot, including putting up our edifice on Ikorodu Road, Obanikoro, Lagos. It is part of promoting the image of the industry. I recall that when I was in the university after the completion of my study of insurance, people used to look down on insurance. One of the things I said to myself was, as I join the insurance industry, I should be able to make a mark and change the poor perception of the public against the industry so that people can have respect for insurance practitioners and this is exactly what we have done at NEM. A number of people, including management of top banks, have come here. Some people who have been abroad and who saw the way insurance is doing there, came here and were wooed. They said insurance companies here can now be compared to those in abroad. For us, we are trying to prove a point that the industry has come to stay and is a force to reckon with in the economy.

    So, how genuine are insurers in claims payment?

    Yes, we are for real. We are willing and ready to pay claims. When a client has a legitimate claim, he or she, group or corporate organisations, will get the claims paid seamlessly without going facing any rudiments. But if a client has legitimate a claim and an  insurance company refuses to pay, you can report such a company to the regulator and they would ensure that you get your claim.

    Why should people insure?

    Insurance is the bedrock of any economy. It is very important for people to secure their assets so that in the unlikely event that you suffer one loss or the other, insurance will put you back in the position you were before the loss. Insurance companies are supposed to restore you to that position you were so that it is a seamless effort. It is very important for industries, companies and individuals. For instance, someone who has bought a car for N2 million and he insures it, the company will make sure that his standard does not fall below the level he was before the loss occurred. So, this is why I encourage everybody to protect his/her assets by buying an insurance product. By doing so, they are securing their future.

    At NEM, we have various products that you can use to secure your future. NEM is one of leading companies in the industry  because it has revolutionised insurance practice in Nigeria. NEM is the best in terms of service delivery, relationship and in all other parameter or indices.

  • You can trust AIICO, MD assures

    You can trust AIICO, MD assures

    AIICO Insurance assures  that if you are in search of an insurance firm that you can trust, it will serve you and ensure that you are not disheartened.

    Managing Director, AIICO Insurance, Edwin Igbiti, stated this in a chat.

    He said the company aims to be the leading provider of financial services that cater to both individual customers and organisations.

    ‘’Our expertise in the industry is a testament of our commitment to great service and a culture that thrives on innovation and passion,’ Igbiti said.

    “Over the years, we have remained dedicated to developing our people, strengthening our operational efficiency, and building trusting relationships with our clients and partners.

    “We aspire to create consistent value for our customers and stakeholders and will continue to improve on key indices such as prompt claims payment, proactive risk management and competitive pricing”, he added.

     

    Our Testimonials

    Income investment plan: AIICO’s Benefits team was notified of a death claim on an investment policy two days after the insured commenced his policy. We provided the family with all the details and documentation; thereby, ensuring smooth payment shortly after.

    The benefactor expressed appreciation and surprise at our prompt service and payment, which lessened the financial burden for the burial.

    Fire & burglary policy: AIICO’s Property Claims team was notified of a fire incident at an insured’s factory. An adjuster was immediately assigned to inspect the site, ascertain the extent of damage, and determine the time required to repair the damage.

    AlICO acted promptly in line with the terms and conditions of the policy. The insured was indemnified and the factory was able to resume production.

    Aiico auto policy: Auto Claims team received a claim report about an accident, which led to the total damage of the back bumper of our insured’s car.

    The claims team worked with the insured for necessary documentation. Our technical experience and knowledge allowed us negotiate with the relevant parties, and we returned the fixed car after a short while. This, in turn, meant lower claims costs for our clients.

     

    OUR STORY

    AIICO started operations in Nigeria in 1963 as an agency of American Life Insurance Company (ALICO) —a subsidiary of American International Group (AIG) at that time.

    The company was incorporated, registered and licensed in Nigeria as American Life Insurance Company Limited as a wholly owned subsidiary of ALICO/AIG in 1970 to offer Life and Pension products and Insurance services.

    It was later renamed American International Insurance Company Limited (AIICO) upon the acquisition of a 60 per cent stake by the Federal Government, and later listed on the Nigeria Stock Exchange (NSE) in 1990, after which both shareholders divested.

    Following the consolidation of the insurance industry in 2007, the company acquired NFI Insurance Plc. and Lamda Insurance Company Limited (both cumulatively accounting for less than 30 per cent of AI ICO’s pre-acquisition gross premiums). The company, subsequently, recertified as both General Insurance and Life Assurance Company, taking advantage of its legacy, brand, franchise and strong retail distribution network to grow a leading General Insurance business.

    To take advantage of the opportunities presented by the Pension Reform Act of 2004, AIICO Pension Managers Limited (APML) was incorporated in February 2005 and licensed in April 2006 as a Pension Fund Administrator (PFA) by the National Pension Commission (PenCom), and commenced operations in May 2006. AIICO also owns valuable financial and strategic assets including a controlling stake in AIICO Multishield Limited and a 19 per cent stake in Healthcare International Limited, both Healthcare Management Organisations (HMOs), and AIICO Capital Limited, an asset management wholly-owned subsdiary.

  • Wapic redefines insurance business with service excellence

    Wapic redefines insurance business with service excellence

    With its rich history of impressive rating by A.M. Best, the world’s leading issuer of financial-strength ratings which measures insurance companies’ ability to pay claims, Wapic Insurance’s standing as a solid player in the insurance sector is incontrovertibly affirmed.

    However, the series of industry defining innovations emerging from the staple of the leading West African multi-line insurance company has made pigeon-holing the firm into the frame of its acclaimed solid financial power somewhat difficult. This is attributable to the rub-off effect of the company’s highly successful transformation programme on the insurance industry, which has refined service quality, brought innovation to product offerings and increased stakeholders’ confidence in the sector.

    In the last three years, Wapic Insurance has demonstrated that service is as important as financial ability to fulfill obligations to customers.

    In a recent chat, its Managing Director, Mrs. Adeyinka Adekoya, defined what the company is about, saying: “Wapic insurance is about service and providing options to customers.”

    Adekoya disclosed: “Claims turnaround time in the company does not exceed 48 hours upon execution of a discharge voucher because of its efficient claims management process. She also revealed that “through its wheel of innovation, Wapic Insurance has offered insurance customers in Nigeria options through its bouquet of exciting products developed to meet their needs.

    “Customers subscribe to the services of insurance firms because they do not want to experience any hiatus between when an incident occurs and when claims are paid. This means that they want immediate restoration, which is actually what we offer at Wapic Insurance,” hinted Mrs Adekoya.

    The company’s claims payment record corroborates this statement and signals Wapic Insurance’s uncommon understanding of the insurance market in Nigeria. In 2016 and 2017, total claims paid by the company were N2.8billion and N3.2billion. Similarly, gross written premium within the same periods surged by 13 per cent and 23 per cent to N8billion and N9.8billion.

    While these indicate the company’s ability to fulfill its obligations when due, the deeper insight gleaned from its recent financial report reveal that Wapic Insurance met these obligations at an impressive rate of 100 per cent. Beyond institutional commitment to exceptional service, Wapic Insurance’s value proposition is built upon a solid corporate governance and risk management framework that ensures delivery of exceptional service experiences and innovative product solutions to its clients.

    At the moment, Wapic Insurance maintains treaties with world-class reinsurance companies to bolster its claims management systems and maintain its market leadership through quick and efficient claims payment.

    As the leading multi-line insurance company in the West African region providing solutions covering life, general and special risks, the company seeks to underwrite the insurable risks exposures of corporate and individual customer. The company is also a lead underwriter in numerous big-ticket and highly technical transactions.

    Established in 1958 and listed on the Nigerian Stock Exchange since 1990, Wapic Insurance is on a mission to transform into a diversified financial services institution, delivering value in a sustainable manner to customers and stakeholders while playing a lead role in the transformation of the industry.

  • ‘How maritime sector will fare in 2018, 2019’

    ‘How maritime sector will fare in 2018, 2019’

    The 2018/2019 forecast on the maritime sector is of a growth of between 2.5 and 5 per cent. However, red flags are also raised on factors that can stall the growth, writes OLUKOREDE YISHAU.

    Dr. Doyin Salami, a lecturer at the Lagos Business School, wore his analytical cap well on Tuesday. Salami found himself reviewing the 2018-2019 forecasts on the maritime sector. The scholar, who noted that forecasts were essential tools for growing an industry, pointed out that the gaps in the sector must be filled by policy makers to realise its potentials. He urged investors, local and international to take the forecast serious as a way of enhancing the growth of their businesses.

    The Nigerian Maritime Industry Forecast for 2018 and 2019, the first of its kind in the sector, is aimed at serving as a compass for those willing to do business in the country’s maritime domain. The forecast reviewed developments in the industry last year, shows expected developments in policy and regulatory environment for the maritime sector in 2018 and 2019 and looks at emerging opportunities and challenges for the industry.

    The forecasts highlight key drivers of the sector, such as geographic factor, availability of skilled labour force, an efficient and effective regulatory environment, manpower and human capacity development, maritime infrastructural development, globalisation and new technology amongst others.

    Salami’s take was not radically different from the Secretary General of the Abuja Memorandum of Understanding (MoU) and former Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Mrs. Mfon Usoro. Usoro, a lawyer, commended the forecast as a great interaction with the industry players to move the sector forward. Furthermore, she also observed that the increased presence of NIMASA activities in the maritime sector of the West and Central Africa sub-region is an indication that the present leadership of the Agency is on course.

    The duo spoke of a sector which plays a major role in the exploitation, distribution and export of Nigeria’s ocean resources and boasts of a total annual freight cost of between $5 and $6 billion dollars annually.

    Salami and Usoro took their positions in Lagos yesterday after NIMASA DG Dr. Dakuku Peterside presented maritime industry’s forecasts for this year and next year. The highlights of the forecasts   are: the maritime industry is projected to grow by 2.5 – 5 per cent; there will be more demands  for maritime services in Nigeria; total fleet size will grow by 4.08 per cent in 2018 and 4.41 per cent in 2019; oil tanker fleet size will decrease by 2.23 per cent in 2018 and increase by 1.7 per cent in 2019; non-oil tanker fleet size will increase by 8.15 per cent in 2018 and 8.72% in 2019 and the oil rig count will increase by 27.67 per cent in 2018 and 0 per cent in 2019.

    With a coastline of about 853km and about 10,000km of Inland Waterways, 12 Nautical Miles of Territorial Waters, 200 Nautical Miles of Exclusive Economic Zone (EEZ), Nigeria should have no problem achieving the projections. The fact that Nigeria imports over l50 million metric tons of non-oil cargo and approximate 1,500,000 units of containers a year, analysts say, should make meeting the projections easy. They also point at the facts that total cargo throughput in 2015 stood at 195,969,200 metric tonnes showing a marginal increase of 0.8 per cent over the 2014 figure of 194,484,142 metric tonnes. The current aggregate of the cargo throughput exceeds $15,000,000,000 a year through formal import orders.

    Speaking at the presentation, Peterside said: “As a regulator, we are driven by values and commitment, as these are the only ways that investors can be attracted to harness the great potentials in our maritime sector. On our part, we will continue to work out incentives and maritime sector specific interventions to attract investments.”

    Critical to the realisation of the projections in the forecasts are some bills now in the National Assembly.  These include the Anti-Piracy Bill, the establishment of the Maritime Development Bank, Inland Fisheries Amendment Bill, the Deep Offshore and Inland Basin Production Sharing Contract Amendment Bill and the Cabotage Act Amendment Bill 2017.

    “All these if passed to Law will help realise the dream of making Nigeria the maritime hub in Africa,” said Peterside.

    He added: “Whilst the oil sector remains one of the pillars of the Nigerian economy and is a catalyst for measuring our economic growth, the success of this sector is dependent on the Maritime Sector which continues to play a strategic role in the Economy of the Country.

    “A number of factors have contributed to the gradual growth that we have recorded such as the receding crime in the Niger Delta region; the Deep Blue Scale Up of our Maritime Security Architecture is addressing the immediate challenges in this area and is aimed at suppressing the emerging threats on our waters.

    “Government’s commitment through initiatives such as the Presidential Order on Ease of Doing Business continues to yield positive results in our Ports. The on-going Infrastructural reforms in the transport sector are all indicators that we are walking in the right direction.”

    In a foreword to the publication, Minister of Transportation Rotimi Amaechi said: “The Maritime Domain remains the dominant medium for global shipping and commerce and it holds the key for unlocking the streams of opportunities in the industry in such areas as: renewable energy, fisheries, maritime transport, waste management, tourism, and biodiversity.

    “However, International and global economy influence the maritime sector, especially as it relates to defining the trade pattern, standards and international best practices.

    “The Nigerian government as regulator of the Maritime sector is committed to partnering with industry stakeholders to ensure economic growth and competitiveness of Nigeria’s Maritime Domain. All over the world Public Private Partnership drive government initiatives in addressing the infrastructural needs of a nation.

    “Consequently, the presentation of Nigeria’s Maritime Industry forecast by NIMASA is a novelty geared at bringing to the front burner critical maritime industry issues and best global practices to guide investors and stakeholders in harnessing the potentials of the blue economy in the next two years (2018 and 2019) and beyond with focus on emerging opportunities and challenges in the maritime industry.

    “There is no doubt that the maritime sector is highly susceptible to technological dynamics and changes which require huge funding and investment for achieving effectiveness and efficiency.”

    Significantly, the publication devotes attention to the Petroleum Industry Governance Bill (PIGB), a subset of the Petroleum Industry Bill (PIB). This bill seeks to bring under one law the various legislative, regulatory, and fiscal policies, instruments and institutions in the petroleum industry. It seeks to repeal the 16 petroleum industry acts

    On the likely impact of the bill on the maritime sector, the report noted: “Shipping has always been of strategic importance to the oil and gas industry. Not only is over 70% of all crude oil production transported by ships, more and more oil productions activities are being carried out offshore. This shows that the oil industry relies heavily on the maritime industry for its smooth operations. Whatever happens in the oil and gas industry is likely to affect the shipping industry and vice versa.

    “It is estimated that Nigeria has lost over $50 billion worth of investment in the oil and gas industry since the last 16 years which could have culminated in additional 1.5 million barrels per day crude oil production for the country, which has continued to heighten the agitation for the passage of the PIB.

    “With full implementation, the PIGB will ensure: Increased Cabotage Activities: An increase in investment in the industry, means more production activities and more production activities means more shipping logistics requirement. The Cabotage trade in Nigeria is 95% within the industry, so we are likely to see an increase in investment if the act meets the expectations of industry practitioners.

    “Increased Demand for Crude Oil Tankers: If there are more investments in the oil and gas industry, there will be more oil production and more oil production means more crude oil tankers for export. Nigeria exports 100% of its crude oil by sea, so, an additional 500bpd of crude oil production in the next one or two years will amount to 182,500,000 barrels per year or 25,347,222 MTS of cargo per annum. This volume of cargo will require a minimum of 91voyagies of a very large Crude carrier (VLCC) vessel to lift, which will generate a lot of activities in the maritime industry.

    “The immediate impact of an increased investment in the oil and gas industry is the massive importation of equipment for oil and gas production. This will see more vessels calling Nigerian ports, more revenue for the government and more business for auxiliary services providers in the industry.

    “It is also believed that the passage of the PIGB will attract multinationals into the downstream sector of the industry leading to the setting up of refineries which will eventually lead to Nigeria being a net exporter of refined petroleum products. If this happens in the next one or two years it will lead to the demand of refined petroleum tankers and more importantly it will create a very robust bunkering business in the maritime industry, which is capable of generating over $3 billion per annum.”

    The publication also pointed out challenges capable of derailing the growth. These include security, financing, efficiency of ports, labour services and more.

    On security, it noted: “The high number of incidents of piracy and armed robbery against ships in the Gulf of Guinea has become a growing concern to the maritime industry, which is heavily affected by these incidents. Although the acts of high sea brigandage have been controlled to some extent, the economic implications of piracy still remain enormous, cutting across all other sectors. Ship owners use private armed security guards on their vessels, while commuting the dangerous pirate zones in Nigeria. These incidences disrupt business and hamper the growth of the maritime industry.

    “As a result of this appalling situation, it has become more expensive for ships to come into Nigeria. While some of the pirates are heavily armed with sophisticated weapons and sometimes hold victims hostage, others are robbers with minimal weapons and hackers. The solutions to these attacks include the utilisation of surveillance facilities, deployment of security personnel able to identify and man flash points (entry and exit points in Nigerian waters) and installation of facilities that can take snapshots of real time.”

    The publication observed that the labour market in the industry presents a significant challenge to maritime business services and activities.

    “The growing demand for seafarers in Nigeria could mean that even a successful maritime education division in the country might not produce enough Nigerian-based seafarers to support the continued needs of the maritime industry,” the publication noted.

    It added that increases in vessel size present challenges for ports and shipping companies. “The need to accommodate greater numbers of larger vessels creates challenges for ports if they do not have the capacity to accept such ships,” the publication said.

    Over the years, the report said, the maritime industry has been stunted by insufficient funding. This has led to gross inefficiency and lack of effectiveness in the management of shipping and maritime industry services.

    “These have, indeed, affected investments in maritime infrastructure and equipment, which are critical to the efficient delivery of services in shipping and maritime operations. With the ocean economy projected to be significantly larger than the traditional maritime economy, there are clear imperatives for greater focus on key growth areas,” it said.

    Other critical issues germane to achieving the projections are: promotion of tourism, development of related economic activities, enhancement of industrial growth and development and socio-political harmony.

    Critical to the expected growth is the challenge of the transition from the Free On Board (FOB) trade term, which favours foreign ship owners in crude lifting to the Cost Insurance and Freight (CIF), which will enable indigenous ship owners to begin to lift crude.

    Speaking at a forum to address the challenge, Minister of State for Petroleum Dr. Ibe Kachikwu said the issue had lingered too far and urged participants to fashion out resolutions that would help the country.

    Peterside, in a paper titled “The Imperatives of Changing Nigeria’s Crude Oil Affreightment Trade Terms From FOB to CIF”, said the CIF if implemented will “encourage indigenous fleet expansion, lead to massive job creation for qualified Nigerian Seafarers, create opportunities for mandatory sea time experience for Nigerian cadets and build expertise and competence in international shipping trade”

    He went on: “Nigeria is one of the major exporters of oil and gas resource in the world, and she averages an output of 1.92 million barrels of crude oil per day so this volume generates huge freight for carriers. Regrettably, Indigenous shipping operators have insignificant share of the freight earned from the carriage of Nigeria’s crude compared to foreign counterparts”.

    Unlike the situation in Nigeria, its OPEC colleagues, such as Iran, Indonesia, Algeria, Kuwait, Angola, Venezuela, UAE and Libya allow indigenous operators to ship crude oil.

    NNPC Group Managing Director Dr. Maikanti Baru stated that the corporation had no reason not to allow Nigerians lift crude. He, however, added that processes have to be followed in opting for the CIF trade term.

    It is hoped that all hands will be on deck to address the challenges so that the expected growth will be achieved.

  • Julius Berger returns to Lagos-Ibadan Expressway this month

    Construction work would resume this month on the Section 1 of the Lagos-Ibadan Expressway. The Federal Government has mobilised the contractor, Julius Berger Plc, to return to site, it was learnt yesterday.

    The Federal Controller of Works in Lagos, Mr Godwin Eke, confirmed the development after inspecting road projects in Lagos.

    Eke said that the project was over 50 per cent completed before the contractors left site due to debts owed it.

    Section 1 of the project awarded Julius Berger spans from the old toll gate plaza at Ojota end of the highway in Lagos State to the Sagamu Interchange in Ogun.

    Messrs Reynolds Construction Company (RCC) was hired by the Federal Government to reconstruct Section 2 which spans from the Sagamu Interchange to Ibadan in Oyo State.

    Eke said: “Recently, we got approval for the augmentation because at a point, Julius Berger could not make claims for works already executed.

    “So, now that we have the approval in our hands, construction work will soon resume fully on Section 1 of the Lagos-Ibadan Expressway. The project is more than 50 per cent completed.”

    According to him, the President Muhammad Buhari-led administration had been able to clear the debt owed by previous administrations on road projects.

    Eke said that this would pave the way for the completion of the various ongoing road projects.

    The controller also said that construction work had resumed on the two pedestrian bridges on the Lagos-Abeokuta Expressway.

  • Elections sequence crisis: Any end in sight?

    Elections sequence crisis: Any end in sight?

    The controversy over the sequence of elections has been on the front-burner since the Independent National Electoral Commission (INEC) released the timetable for the 2019 general elections. ONYEDI OJIABOR reports that the dust kicked up by the reordering of the timetable by the National Assembly will take some time to settle.

    The crisis of election sequence tearing the political class apart may not be unexpected.

    The discordant voices trailing the amendment of the Electoral Act which engendered the crisis of confidence in the polity is also not new.

    What may be new is whether the controversial amendment that altered the order of elections will stay or not.

    Observers say the amendment is, no doubt, one alteration of the Electoral Act that is bound to change the course of elections in the country, whichever way it goes.

    It all started with the adoption of the conference report of the two chambers of the National Assembly which gave nod to change established election sequence in the country.

    The amendment placed the National Assembly election first, followed by governorship and House of Assembly election. The presidential poll, which hitherto was first, was placed last in the order of elections.

    The new order adopted by the Eighth National Assembly was first proposed by the Fourth National Assembly in the 2002 Electoral Bill.

    It was later amended by merging the presidential and National Assembly elections.

    The National Assembly conference committee on Electoral Act (amendment) Bill which met in Abuja insisted that the reordered sequence, which places the presidential election last, is the best for the country.

    In its amendments to the 2010 Electoral Act, the House of Representatives Committee on Electoral Act (amendment) Bill had included Section 25(1) into the Act by reordering the sequence of the elections to start with the National Assembly, followed by governorship and state assembly election before the presidential election.

    INEC fixed presidential and National Assembly elections for Saturday, February 16, 2019 and governorship and State Assembly elections on Saturday, March 2, 2019.

    The National Assembly, however, changed the arrangement, demanding that the National Assembly elections come first and the presidential poll last.

    Adopting the reordered sequence as contained in the House of Representatives version of the amended Electoral Act, the Chairman of the joint committee, Senator Suleiman Nazif (Bauchi North), put it to a voice vote.

    The 12-member committee unanimously answered in the affirmative to pave the way for the report to be presented to the two chambers for final ratification.

    Apparently fearing a backlash, Senator Nazif promptly declared that the bill did not in any way violate any provisions of Section 76 of the 1999 Constitution which empowered INEC to fix dates and conduct elections.

    To him, the provisions that empowered INEC to fix dates and to conduct elections were duplicated in the bill, just as the power that confers on the National Assembly by Section 4, sub-Section 2 of the Constitution were exercised in relation to rescheduling of elections.

    Nazif said: “For the avoidance of doubt, this bill with the inclusion of Section 25(1) which makes provision for sequence of election different from the one earlier rolled out by INEC has not in any way violated any provisions of the laws governing the operations of the electoral body.”

    Chairman, House Committee on INEC, Edward Pwajok, on his own said what the House did and concurred to by the Senate was very necessary in giving credibility to the electoral process in the country.

    Pwajok said: “The sequence of election provision in the bill is not targeted at anybody but aimed at further giving credibility to the electoral process by way of giving the electorate the opportunity to vote based on individual qualities of candidates vying for National Assembly seat.

    “On whether it would be assented to or not by the President, as far as we are concerned, remains in the realm of conjuncture for now but if such eventually happens, we will know how to cross the bridge.”

    Other members of the committee include; Senator Shehu Sani (Kaduna Central), Gilbert Nnaji (Enugu East), Abiodun Olujimi (Ekiti South), Peter Nwaoboshi (Delta North).

    Before the adoption, Senate President Bukola Saraki told his colleagues to remember that they would not be senators forever.

    He said: “We will come and go, but the institution will stay. We need to come up with laws that will build strong institutions.

    “Let us not be personal about this. Let us behave like statesmen. We have procedures on some of these things. There are many bills we have passed. If there are issues, there are mechanisms we can use to resolve them.’’

     

    But as events unfolded, those who thought the amendment was a done deal when the conference report was adopted may have to think again as its adoption unsettled the upper chamber.

    The acrimony, bickering and internal strife could not be contained even at a closed session of the chamber.

    Ten members of the chamber, led by Senator Abdullahi Adamu, stormed out of the chamber to open what appeared a Pandora’s Box of crisis.

    The 10 senators left nobody in doubt about their opposition to the amendment. At a news conference, they vowed that the amendment would not stand.

    To them, the alteration was targeted at President Muhammadu Buhari’s electoral success in 2019.

    The other senators in Adamu’s camp are: Ovie Omo-Agege, Abu Ibrahim, Benjamin Uwajumogu, Ali Wakil, Abdullahi Gumel, Binta Masi Garba, Yahaya Abdullahi, Andrew Uchendu and Umaru Kurfi.

    Omo-Agege went further to say that the dissenters who were ready to do battle to restore the old order were actually 59.

    The Delta Central senator was so sure of the number of those opposed to the amendment that he asked those who may be in doubt to take the figure to “bank.”

    Not to be out-played in its own game, the leadership of the senate has not folded its hands. The leadership appears set to weather the storm even if it means whipping dissenters into line.

    Those tagged “senate undertakers” positioned in various key committees, are also said to be waiting on the wings to do in “recalcitrant and intractable” senators.

    The recommendation of dissenting senators for investigation, observers say, has given the inclination that there might be more to the amendment than meets the eye.

    Senator Omo-Agege has not only been recommended to face the Ethics, Privileges and Public Petitions committee for allegedly over shooting his bound.

    Before Omo-Agege could face what has been described as “foreclosed investigation”, the election sequence crisis has already consumed its first casualty.

    Senator Adamu, a former Nasarawa State governor, perceived as the ring leader of the “rebels in the chamber”, has been hit in a hard way.

    Not only has Adamu, a ranking senator, been unceremoniously sacked as the chairman of the Northern Senators’ Forum, the Nasarawa West Senator was accused of mismanaging N70 million belonging to the forum.

    The sack of Adamu and the recommendation of Omo-Agege to face investigation, some say, is just the precursor of what is to come.

    Relying on a letter said to have been endorsed by 49 members of the forum, counter-signed by Senator Dino Melaye, the forum’s spokesman, Deputy Senate President Ike Ekweremadu announced Adamu’s removal as chairman of the forum for alleged “financial mismanagement and misadministration.”

    Adamu, a third-time senator and an ally of President Buhari in the Senate, was replaced by Senator Aliyu Wamakko (Sokoto North).

    A letter addressed to the “The President of the Senate, Federal Republic of Nigeria,” detailed reasons for Adamu’s removal.

    Entitled: “Announcement of removal of Senator Abdullahi Adamu as chairman, Northern Senators’ Forum” the removal read in part: “This is to inform the Senate that the majority signatories of members of the Northern Senators Forum; we have removed Senator Abdullahi Adamu as chairman of the Northern Senators Forum for financial mismanagement and misadministration.

    “We announce his replacement with Senator Aliyu Wamakko immediately. Find the attached names and signatories of members.”

    Melaye signed the letter on behalf of the Northern Senators Forum.”

    At a news conference by the Chairman, Senate Committee on Media & Public Affairs, Aliyu Sabi Abdullahi, accompanied by senators Shehu Sani (Kaduna Central) and Isah Hamman Misau (Bauchi Central), the drama of Adamu’s removal further played out.

    A comical vent was added to allegation as if the alleged mismanagement of N70 million was not troubling enough.

    Asked to explain the meaning of “financial mismanagement and misadministration” levelled against Adamu, Sani took the stage to throw more light on the allegation.

    The Kaduna Central lawmaker said: “Abdullahi Adamu is a distinguished senator and an elder statesman. There are some things that some of my colleagues cannot say but I’m not used to holding back what is the truth.

    “When we resumed as senators, when we assumed office, Senator Ahmed Lawan (Senate Leader) tendered the sum of N70 million to the Eighth Senate that is, N70 million was monies gathered by Northern Senators from the Seventh Senate. So, it was handed over to the Senators from Northern Nigeria under the Eighth Senate.

    “The rumours going round whether it is true, but I believe most of the senators know is the fact, there were allegations that some monkeys raided the farm house of some of the executives in Northern Senators Forum and carted away some of these monies.

    “I think this country is becoming a huge joke, first of all, it was the rodent that drove away the President; we now have snakes consuming about N36 million; and now, you have monkeys carting away N70 million from a farm house.”

    Apparently to mitigate already bad situation, Sani underscored the need for Adamu to speak on the issue, saying: “I support that it is very important that the distinguished senator who is a respected elder statesman, should be around to protect and defend his integrity.”

    Melaye said: “All I will just say is simple; that the decision of the majority of the Northern Senators’ Forum is that they want to have a change of leadership.

    “The allegations investigated and found out to be true are that there was financial mismanagement; that monies were spent without the consent of members and members of the Executive were not contacted; and that the organisation is becoming moribund and ineffective.

    “We are not doing the things that we are supposed to do and we need to inject some vibrancy into the organisation, and that many positions have been taken without consulting with the Exco and other members of the organisation.”

    Initial efforts to get Adamu’s side of the story were unsuccessful.

    He was said to have insisted that the time was not ripe for him to speak on the issue.

    Those in Adamu’s camp were not amused by the development.

    “The attack on Adamu is just the beginning. Information available to some of us is that all those who participated in the walkout to address the press on the amendment of the Electoral Act may not escape sanction one way or the other. Recall that Omo-Agege has been referred to the Ethics committee for investigation. His apology may not save him”, one of them declared.

    But the former governor broke his silence yesterday while addressing thousands of All Progressives Congress (APC) members and leaders from all wards in Nasarawa State who paid him a solidarity visit.

    He urged aggrieved APC National Assembly members to quit the ruling party instead of plotting against President Muhammadu Buhari.

    Adamu, who spoke in Keffi, berated APC senators and representatives for allegedly sitting on the fence in order to sabotage Buhari.

    According to him, such lawmakers “are cutting the umbilical cord between them and their party.

    Senator Ali Wakil, however could not hold back his frustration over the treatment meted to Adamu. The Bauchi State senator told the Senate in plenary that at no time did the northern senators’ forum met to resolve to sanction any of its leaders.

    Wakil said told his colleagues that neither the forum’s secretary, Senator Barau Jibrin nor Melaye called for a meeting where disciplinary issues were discussed. Wakil came short of declaring the sack of Adamu null and void but ended up asking the presiding officer to take a judicial notice of what he said.

    On the recommendation of Omo-Agege to face disciplinary committee, Melaye cited Order 14 of the Senate Standing Rules and prayed the chamber to refer Omo-Agege’s submission that President Buhari was that target of the amendment to the Ethics, Privileges and Public Petitions committee to investigate the claim.

    Melaye said: “I am heavily worried. President Muhammadu Buhari is not only my party man. He is a president we all laboured to vote for. My colleague, Senator Ovie Omo-Agege addressed the media last week. He said the decision taken by this Senate is targeted at President Buhari.

    “I cannot be part of any group of persons to move against the President. The allegations are weighty. I followed President Buhari to 35 states of the Federation during the campaigns.

    “When I was following the President round the country, Omo-Agege was in the Labour Party. To now alleged and put the integrity of the Senate under check that the amendment was tailored towards the President is unheard of. It is in bad taste.

    “I want to ask that this statement made by Omo-Agege, among other statements, be investigated by the committee on Ethics, Privileges and Public Petitions. They need to find out if our actions were targeted at the President. Another interview was granted by the same senator.”

    Subjecting the prayer to a voice vote, the Deputy Senate President, Ike Ekweremadu, who presided over the session, said: “Melaye came under Order 14, is it the wish of the Senate that the issue be referred to the Ethics committee for investigation.”

    What followed was a near unanimous ‘aye.”

    In March 2017, Melaye raised a Point of Order against Mohammed Ali Ndume over alleged unsubstantiated claimed on the purchase of exotic car for the Senate President Abubakar Bukola Saraki and alleged certificate forgery by him (Melaye)

    Ndume was hurriedly investigated and eventually suspended for six months. It is not clear whether the Borno South lawmaker has fully recovered from the effect suspension.

    The implication of referring Omo-Agege’s comments to the Ethics Committee is to establish Omo-Agege’s claim.

    It may also be instructive to ask why Omo-Agege was singled out to face the committee especially when he is not the arrowhead of the group.

    However the Senator representing Katsina South, Abu Ibrahim, insisted that the amendment of the Electoral Act remained illegal, a waste of time and resources by the National Assembly.

    Ibrahim recalled that an attempt to reorder the sequence of 2019 elections which INEC has already decided cannot stand.

    He explained that by virtue of Section 75, 118, and item 15(a) of the 3rd schedule of the 1999 constitution, INEC is the only organ vested with powers to regulate, conduct, supervise, direct, organise and fix dates for elections in the offices of the President and his vice, governors and his deputy as well as the National and state assemblies.

    Ibrahim who is the Chairman, Senate Committee on Police Affairs, believes that “the purported amendment Act is purely an encroachment on the powers granted to INEC by the 1999 constitution more especially as INEC has already taken its decision on the same issues.”

    He went on: “In the haste to carry out their self-serving interest amendment on the matter, they have ignored those constitutional provision and previous court judgement by the Federal High Court and Federal Appeal Court on the same issues in 2002.

    “Specifically, an Act of National Assembly passed in the House of Representative and which was concurred by the Senate on 26/2/2002, was transmitted to the President on 24/6/2002 but was eventually refused assent by the then President Olusengun Obasanjo.”

    “However, on 26/9/2002, the House of Representative and Senate respectively, through a motion of veto, override the purportedly passed Act because 30 days had elapsed without the assent of the president to the bill.

    “INEC was aggrieved by that development and went to Federal Court in Abuja seeking declaration whether National Assembly can enact electoral Act on matters which INEC has adequate constitutional provisions to deal with such issues.

    “In its judgement, the Federal High Court held that the National Assembly Act passed by the two Houses but which was not assented to by the President was unconstitutional and illegal because it was an encroachment on the power vested in INEC by the 1999 constitution.

    “National Assembly not satisfied with the Federal High Court Judgment, went to Federal Appeal Court for further determination in its ruling on 29/11/2002 delivered by Justice George Adesola Oguntade, supported by two other Judges upheld the decision of the lower High Court and declared that the Electoral Act of 2002 encroached in the power vested on INEC by the 1999 Constitution.

    “Since the 2002 judgement has not yet been set aside by any superior court, the Federal High Court decision on the matter still subsists,” Ibrahim said.

    In his view, “unless and until it is set aside by a superior court order, any attempt to usurp the power of INEC on matters of elections is a waste of time and resources which the President will not honour with his assent.”

    The puzzles that must be unraveled are: why has it suddenly become imperative for the National Assembly to tinker with the sequence of elections? In whose interest is the reordering? Is the amendment actually targeted at President Buhari?

     

  • Mutilated naira notes: e-payment channels as panacea

    Mutilated naira notes: e-payment channels as panacea

    Economic managers are worried over the prevalence of mutilated naira notes The Central Bank of Nigeria (CBN) is urging currency handlers not only to keep the naira notes in circulation sparkling by adopting global best practices, but also embrace alternative payment channels as being promoted under the cash-less policy initiative. COLLINS NWEZE writes that the use of alternative banking channels like Point of Sale (PoS), Automated Teller Machines (ATMs), web payments and other electronic banking channels will help cut the N2.15 trillion cash in circulation and promote better cash handling by consumers. 

    There are rules set by the Central Bank of Nigeria (CBN) to guide the printing, circulation and storage of the local currency – the naira.

    After the notes and coins have been printed/minted by the Nigerian Security Printing and Minting (NSPM) Plc and other overseas printing/minting companies, the apex banks takes charge as the sole issuing authority to other commercial banks.

    The currency-in-circulation rose to N2.15 trillion in the fourth quarter of last year. The figure was 21.1 per cent when compared to the figure in the third quarter of 2017. The development, the CBN’s economic report said, reflected the growth in currency outside banks.

    But, as the naira notes in circulation continue to rise, so is the damage done to them by those that transact with them. It is a regular sight to see people spraying mint notes at parties, writing on the notes, soling the notes, exposing them to liquids, and even squeezing them into inappropriate parts of their clothes.

    The CBN has never shied away from warning against abusing the naira notes. It says that anyone caught in the act would be prosecuted and if convicted the person risked six months in jail, or a fine of N50, 000.

    According to the bank, the abuse of the naira is contrary to its policy, adding that offenders would henceforth be arrested and prosecuted.

    The apex bank describes as unacceptable a situation in which Nigerians accord more respect to the United States (U.S). dollar above the naira, saying Nigerians ought to appreciate and value the local currency because it serves as a symbol of national identity.

    The regulator warns: “The naira has suffered abuse from majority of Nigerians. Today, we find some people spraying the naira at occasions, soiling it, writing on it, squeezing it while some are hawking it.

    “The CBN spent a lot of money in the printing of these naira notes. We urge Nigerians to respect the naira and value it. Anyone caught abusing the naira will risk a jail term of six months or pay a fine of N50, 000.”

    Besides, at the currency printing works of the NSPM Plc, quality is meticulously controlled throughout every process of currency production.

    This guarantees that every note issued meets the required standard. The CBN maintains an office called Mint Inspectorate in the premises of the NSPM Plc to maintain security and quality of the notes and coins.

    As a rule, the CBN issues currency to Deposit Money Banks (DMBs) through its branches and withdraws from circulation through the same channel. The notes deposited in the CBN by the commercial banks are processed and sorted to fit and unfit notes in line with the clean note policy. The clean notes are re-issued while the dirty notes are destroyed.

    As seamless as the processes look, many Nigerians have been speaking on why the notes are not properly handled based on the rules set by the apex bank.

    A former President of the Chartered Institute of Bankers of Nigeria (CIBN), Mazi Okechukwu Unegbu, said technology and electronic payment remain the greatest steps to address the prevalence of old notes in the economy.

    He regretted that many Nigerians are still not conversant with e-payment, hence the need to adopt standard best practices in handling the notes.

    Unegbu said the financial inclusion gap in the country meant that more cash are still being kept at home, thus increasing the chances that such cash will be badly handled.

    He said banking penetration has continued to rise in urban towns, while the rural areas are left totally and the majority of the inhabitants adding to the unbanked population.

    “There has been greater focus on getting financial services to urban dwellers forgetting that rural dwellers are the ones that handle bank notes most and they need to be properly educated on the gains of keeping the notes clean”, Unegbu said.

    He suggested that the Microfinance Banks (MfBs) should be encouraged and supported because they remain the closest financial services to the grassroots.

    “We have to revive the MfBs because the banking technologies cannot help much in the villages. Even in the towns, when Automated Teller Machines (ATMs) dispense old and dirty notes. This has to be addressed if we must achieve better naira notes,” he said.

    He urged the CBN to put expiry dates on the notes, and continue to motivate banks to return old and dirty notes to the apex bank for new ones to be issued.

    Unegbu said: “I want to suggest to the banks to ensure that old and dirty notes that come to them do not return to circulation. And the people have to also develop a better culture in handling bank notes. They must learn to put naira notes in wallets and envelops when presenting them as gifts at parties or other ceremonies.

    “All of us are guilty. We need to discipline ourselves in handling the naira notes. We have to see the naira notes as very important and handle them properly. Those in the rural areas are disciplined and can even follow instructions on handling the naira if they are well educated through radio jingles and television”.

    He also disclosed that new notes are not regularly printed, or properly circulated, as they are given only to the high-net worth individuals, hence, by the time the notes get to the villagers, they are already defaced.

    He identified the costs of absorbing old notes and the fear of losing float for the waiting period to get new notes as reasons the banks are unwilling returning to the CBN.

    “I urge the CBN to do more to ensure that new notes get to the grassroots by empowering MfBs and also supplying them with new notes. They also need to educate the people on how to handle he notes,” he said.

    Richard Obire, a one-time Executive Director of Keystone Bank, blamed the rise in the rate of mutilated notes in circulation on the people’s social behavior as most of business transactions are still cash-based and through the informal market.

    He said many of the cash in circulation are not properly kept, hence the depreciation in their lifespan.

    Obire said: “Even when you put new notes in circulation, the behavioural patterns of Nigerians ensure that the notes have very short life span.

    Here, education is going to play major role in getting the people change such bad behaviors towards the naira. The radio and television messages must come in local languages to make room for better understanding of the sent and received messages.”

    He admitted the high cost of sorting, storing and moving old notes. Hence, all hands must be on deck to ensure that the notes handlers keep them in good conditions.

    Obire urged the CBN to give commercial banks targets based on their balance sheet sizes on the volume and value of notes to be returned every quarter and also monitor compliance while defaulters are sanctioned.

    Besides, he recommended the strengthening of the operators of mobile money to ensure more acceptance of their services as that would improve the quality of notes in circulation.

    He said there should be more investments in the mobile money business, as seen in Kenya where M-Pesa has turned around the fortunes of the grassroots economy.

     

    CBN’s position

    On its part, the CBN assured that it would work aggressively towards increasing financial inclusion rate to 80 per cent, by cutting down on the number of people excluded from the financial system to 20 per cent in 2020.

    The CBN Governor, Godwin Emefiele, who described the target as ambitious, disclosed that the bank had identified key strategies to cutting down the financial exclusion rate to 20 per cent by in the next two years.

    Specifically, he said that the bank would work with the Nigerian Communications Commission (NCC) on how best to take advantage of mobile communication to reach those that were financially excluded.

    The CBN chief said the country has moved from 46.3 per cent exclusion rate in 2010, to 41.6 per cent in 2016.

    According to him, specific areas of focus identified which would be pursued aggressively include “prioritising intervention and creating awareness to ensure patronage, incorporating non-interest financial services into CBN intervention programmes.”

    Others are “mobilising banks that offer such products for greater outreach and impact; massive rolling out of agents networks and creating awareness to increase adoption, and adoption of digital financial services as simple, flexible and easy alternative channels for reaching remote areas and rural hinterlands.”

    Emefiele added that the National Financial Inclusion Strategy was being reviewed for greater effectiveness and impact, adding that stakeholders would be sufficiently mobilised to participate.

     

    Road to financial inclusion

    Enhancing  Financial  Innovation  and  Access  (EFInA),  a leading financial sector development organisation working  to  improve  financial  inclusion in Nigeria  held  a  stakeholders’ workshop in Lagos. The workshop tagged: “The  role  of  government in driving financial inclusion in Nigeria” was  one of  many  similar  events  organised  by  EFInA to bring stakeholders to the table and promote discussions centered on driving policies to improve financial inclusion in the country.

    At the workshop, the EFInA board chair, Ms.  Modupe  Ladipo provided participants with  insights  into the recurring challenges and barriers to  inclusion.

    She  stated that  income  levels  remained  low while observing that the Northern part of the country remained particularly  disadvantaged  in  terms  of  access  to  financial  products  and  services.

    The  workshop  attracted  high  level  participation  including  the  United Nations  (UN) Secretary- General’s  Special  Advocate  for  Inclusive  Finance, Her Majesty Queen Máxima of The Netherlands,  applauded Nigeria  for  revising  the  National  Financial Inclusion  Strategy  after  five  years  of  implementation.

    She urged stakeholders  to  recognise  the  importance  of  leveraging  technology  and  expanding  mobile  money  to address the financial inclusion gap.

     

    E-payment

    The use of electronic payment systems offer a lot of benefits to its users but despite these, the Nigeria economy is still larged cash-based as many people prefer to carryout daily transactions with cash despite the implementation of the cash-less policy.

    Cashless policy is a policy established in 2012 by the CBN to curb excesses in the handling of cash.

    The policy was initiated not to eliminate the use of cash but to reduce the volume of cash in circulation.

    CBN Deputy Governor (Operations) Adebayo Adekola has said e-payment has continued to boost commerce through the use of ATMs, web payments, Point of Sale (PoS) Machines and other alternative payment channels.

    He said the e-payment should be supported in the interest of the economy.

    Adekola said the country was emerging from an era of magnetic stripe challenges which was effectively truncated with the migration to Personal Identification Number (PIN) and chip technology for card issuance.

    This, he said, has ensured a reduction in ATM fraud to zero with the aid of this technology.

    He said: “Since this feat, the industry has consistently been inundated with other types of fraud, from card not present fraud, to insider abuses and phishing scams. In all these, the forum has responded not only proactively but also effectively in fashioning strategies to combat these threats to our payments system.”