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Tag: industry

  • Reviving Kano’s textile industry

    Reviving Kano’s textile industry

    • By Abdulrahman Liman Muhammad

    Sir: The once-vibrant textile industry of Kano, a cornerstone of Nigeria’s economic history, now sits in near ruins, a shadow of its former self. Once employing hundreds of thousands of people and contributing significantly to the national economy, the sector now struggles for survival. For many in Kano, the textile industry was not just a source of livelihood but a symbol of the city’s prominence in Africa’s industrial landscape. The decline of this vital industry has left many jobless and the economy of Kano, and by extension Nigeria, weakened. It’s time for the federal and Kano state governments to take decisive action.

    Kano’s textile industry has roots dating back to the pre-colonial era when it was a hub of trans-Saharan trade. As the centre of commerce for the northern region, its textiles were highly sought after across Africa and beyond. The introduction of modern textile mills in the 1950s and 60s only bolstered Kano’s standing, making it a key player in the Nigerian economy.

    By the 1980s, Kano’s textile mills were thriving, employing over 300,000 workers and contributing massively to Nigeria’s GDP. Today, however, only a handful of these mills remain operational, and the number of employees has dwindled to less than 30,000. The collapse of the industry has resulted in an economic downturn for Kano, increased poverty levels, and a growing number of unemployed youths.

    The decline can be attributed to several factors, including a lack of investment in infrastructure, outdated equipment, and inconsistent government policies. Power supply remains a significant challenge, with factories having to rely heavily on costly diesel generators due to the unreliable national grid. This has made production expensive, diminishing the competitiveness of locally produced textiles against cheaper imports from China and other Asian countries.

    Another major issue is the influx of smuggled and counterfeit textiles into the Nigerian market. Despite bans and restrictions, smugglers have found ways to flood the market with substandard products, undercutting local manufacturers and forcing many to close their doors. Additionally, high import duties on raw materials have crippled the sector’s ability to source essential inputs, further driving up the cost of production.

    While the federal government has made some attempts to revive the textile sector—such as introducing policies to encourage local production and banning textile imports—these efforts have largely fallen short due to poor implementation and corruption. The Central Bank of Nigeria’s (CBN) Cotton, Textile, and Garment (CTG) intervention fund, designed to boost the industry, has had limited impact due to mismanagement and the failure of many textile mills to access these funds.

    Read Also: Supreme Court hears 16 State’s suit challenging EFCC’s powers Oct 22

    Reviving the textile industry in Kano will require a multi-faceted approach. First, both federal and state governments must prioritize investment in infrastructure, particularly in power supply. The introduction of dedicated industrial power plants or special economic zones with reliable electricity would significantly reduce the cost of production for textile companies.

    Second, the government must enforce stricter measures to curb smuggling and protect local manufacturers. Strengthening border security and imposing higher penalties for smuggling would help level the playing field for local industries. Additionally, reducing import duties on essential raw materials would lower production costs and increase the competitiveness of local textiles.

    Furthermore, the government should consider providing tax incentives and subsidies to encourage investment in modern textile machinery. This would help mills upgrade their equipment and become more efficient, making them better able to compete in the global market.

    The textile industry’s revival is not only an economic imperative but also a social one. For the people of Kano, the industry represents hope for a better future, one where jobs are plentiful, poverty is reduced, and the city regains its former glory. However, this vision can only be realized if both the federal and Kano state governments take swift and decisive action.

    The path to recovery may be long and challenging, but with the right policies, investments, and commitment, Kano’s textile industry can rise again. It is time for the government to listen to the cries of its people and make the necessary interventions to breathe new life into one of Nigeria’s most important industries. The future of Kano, and indeed Nigeria’s industrial sector, depends on it.

    •Abdulrahman Liman Muhammad,

     Borno State University, Maiduguri.

  • Chamber of Commerce lacks permanent office in Imo

    Chamber of Commerce lacks permanent office in Imo

    In a surprising revelation, the Owerri Chamber of Commerce, Industry, Mines, and Agriculture (OCCIMA) has been operating without a permanent office despite its efforts to attract investments worth over $11.5 billion to the state.

     President of OCCIMA, Barr. Tony Amah, disclosed this during a courtesy visit to the President General of Ohanaeze Ndigbo Worldwide, Chief Emmanuel Iwuanyanwu. 

    Amah commended Iwuanyanwu’s leadership and appealed for his intervention to secure a permanent office for OCCIMA, which has been renting a space since its establishment in 1970.

    Read Also: Tinubu appoints new Board for NAICOM

    OCCIMA faces another challenge in hosting a national trade fair in November, as there is no suitable venue in Owerri.

    The Chamber has appealed to the state government for support in securing a trade fair ground and a permanent office.

    Iwuanyanwu expressed surprise at the lack of a permanent office and directed OCCIMA to apply for land from the state government. 

    He praised the chamber’s efforts to attract investments in cement production, gas processing, oil refinery, ceramics, and agriculture, totaling over $11.5 billion.

  • What next for insurance industry?

    There is an uneasy calm in the insurance industry, The Nation investigation has revealed.

    Palpable is the disquiet between the industry regulator, the National Insurance Commission (NAICOM), and the operators, following the cancellation of some regulatory initiatives and orders.

    NAICOM introduced three major policies to reform the industry.

    To find solution to the industry’s problem, NAICOM on July 25, last year, introduced the Tier-Based Minimum Solvency Capital (TBMSC) that would have mandated the firms recapitalise to have a good ranking under the Tier 1, 2 and 3 categories of the TBMSC’s plan. The plan was jettisoned last November by the regulator.

    The Commissioner for Insurance, Mohammed Kari, said the recapitalisation scheme was aimed at developing and applying appropriate tools that consider the nature, scale and complexity of insurers, as well as non-core activities of insurance groups, to limit significant system risk and achieve soundness of companies and contribute to the achievement of stability of the financial system.

    NAICOM said the policy would allow insurers to focus on their areas of strength, improve settlement of claims, enhance local retention, encourage market discipline, prudence and appropriate pricing, encourage innovation and deepen market penetration, encourage voluntary mergers, and build investors’ confidence, and build a stronger and more vibrant insurance industry.

    But some insurers, through their shareholders, kicked against it, leading to the cancellation of the policy.

    Similarly, the commission introduced the State Insurance Producers (SIP) policy, which would have granted states the operational licence to sell insurance products.

    The policy seeks to enforce compulsory insurance and deepen penetration and create jobs. But it pitched the brokers against the Commission. The move has sent jitters down the spine of operators, especially brokers, who fear that the addition of states as insurance intermediaries might throw them out of business.

    Based on this, the brokers threatened to sue the commission, leading to the cancellation of the policy.

    Following these cancellations, the industry has been at a standstill.

    An operator, who does not want to be mentioned, said the body language of the regulator was frightening.

    He said the commission has not said anything about recapitalisation,  but many of them are trying to find adequate capital.

    Another operator said the regulator may be hard on them when it comes up with other policies in future.

  • ‘Why FG needs to reconsider signing African Free Trade Agreement’

    Mr Emeka Okereke, Director General, Enugu  Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA), has called on the Federal Government to reconsider the signing of the African Continental Free Trade Area (AfCFTA).

    Okereke said this in Abuja when the chamber officials visited the News Agency of Nigeria (NAN).

    The visit was to create publicity for the forthcoming 30th Enugu International Trade Fair.

    The Fair is slated to hold between April 5 and 15 with the theme: “Promoting and Enhancing Value in Addition in the Oil and Non-Oil Sector for Robust Economic Growth And Development.’’

    He said that the agreement was meant for free enterprise and building block economy.

    According to him, many African countries have signed the agreement and so such can discourage bringing goods through the illegal ways.

    AfCFTA was adopted on March 21, 2018 to create a single continental market for goods and services, with free movement of goods and ensure block African economy.

    Okereke said that the country had even signed the Economic Community of West African States (ECOWAS) Trade Liberalisation Scheme (ETLS).

    He said that the ETLS was established  to encourage entrepreneurship development in the region and increase intra-regional trade and boost economic activity.

    Okereke added that the  ETLS and Free Movement Protocol are the most promising tolls for enhancing regional integration in West Africa.

    ” For AfCFTA, Nigeria consciousness is good but we cannot run away from reality; we cannot be an island on to ourselves, even in ECOWAS, we have signed for free movement of goods, persons and services.

    Read also: Chamber seeks foreign tech for business growth

    ” I tell you those goods can still come into our country except we are not obeying the ECOWAS protocol we  have signed into,”  he said.

    Okereke said that challenge was that the country has an open border, adding that even if the country did not sign goods, it would still come into the country through the back door.

    He said that the agreement would  create a single market for goods and services, with free movement of people and investments across 55 countries.

    According to him, the government should try and develop the country’s infrastructure as the main challenge for manufacturers is the high cost of doing business.

    He also urged the government to address the multiplicity of taxes and levies.

    He complained that most companies left the country due to cost of doing business.

    ” The government needs to address issues affecting the business environment in order to boost the country’s economy.”  (NAN)

  • Summit on work opportunities, recruitment holds

    A group of concerned Nigerians has come up with an idea of bridging the gap between the industry and the classroom to tackle unemployment in the nation.

    They reasoned the initiative will further open many to gainful employment and other opportunities.

    Speaking with reporters on Education, Nexus, Industry, Project, (ENIPRO), the Convener, Jesse Ogabu, stated the initiative is to transform the lives of young people through recruitment opportunities.

    He said it will further creating a foundation through the newly designed academy, which will help reposition youth and make them industry- friendly.

    According to him: “Today, information Technology has taken over the industry creating opportunities for only those who are ready to add value to the industry which gave birth to the theme of discussion for the proposed 2.0 Enipro Summit, which is workplace/classroom: The future of work, local content, an inclusive strategy scheduled to hold on the 11th of April at the University of Lagos Main Auditorium.”

    The summit will have in attendance Prof. Pat Utomi, Fatai Folarin, Tope Fasua and a host of other captains of industry.

    Leading recruitment website Jobber-man and Poise Nigeria have also shown interest by creating opportunities for recruitment as well as polishing institute for graduates who still needs to learn the industry language.

    The head of Enipro Academy, Afolakemi Ogunnusi, stated the job place is a translation of what is learnt in the classroom, which many youths find it difficult to effectively replicate.

    He explained that enipro Academy has come up with solutions to effectively tackle that by putting our young graduates back on the right track.

    She also advised students, graduates, corps members and unemployed youths to take advantage of the initiatives and launch into a world of opportunities.

  • Nigerians count losses from polls shift

    • We’ll lose billions of naira, say NACCIMA, others • Lagos, Aba markets record low patronage

    How much could Nigeria have lost to the unexpected postponement of the Presidential and National Assembly elections?

    Although, we may never have an accurate figure, the millions of Nigerian traders, artisans, farmers and motorists who had to stay at home yesterday doing nothing are already counting their losses on account of the polls shift.

    The Vice President, National Association of Chamber of Commerce, Industry, Mines and Agriculture, (NACCIMA), Mr. Tony Ejinkeonye, says Nigeria will lose billions of naira.

    Ejinkeonye, who is also the Director, Business Development for Africa, Esilknet Africa Network Ltd., told News Agency of Nigeria (NAN) yesterday in Abuja that the postponement would affect the economy adversely.

    “It is quite unfortunate that the election was postponed. Economically, billions of naira have been lost and will be lost in the coming weeks. Industries, businesses, including airlines, were affected by the movement restriction.

    “We expect also the same thing happening in the coming weeks. Most important effect is the perception of the international financial community.

    “Situations like this will create panic with massive withdrawal and stoppage of funds inflow to Nigeria. I dread the effects in the stock market on Monday,” he said.

    Ejinkeonye, who said that it would be difficult to determine the actual figure of the loss but would be in billions of naira, said however that the real cost would be the loss of investor confidence.

    Also speaking, the President, National Association of Nigerian Traders (NANTs), Mr. Ken Ukaoha,  said the country would  lose more than N140 billion due to the postponement.

    Ukaoha noted that the postponement would affect the economy adversely in terms of money that the government, political parties and ordinary Nigerians had already expended on logistics and otherwise.

    He described the election postponement as appalling and unfortunate which could make the nation become a laughing stock among the comity of nations.

    “The loss is monumental; if you look at the economic consequences, essentially if you look at trading; Nigeria depends so much on daily turning of fund through distribution and redistribution of goods and commodity.

    “I am telling you that with this calculation I have just done here, we are losing nothing less than 140 billion naira, because we all got this information so late

    “If you go round now, you will see that the shops are closed, so we are losing a lot  of money just for this incident.

    “We are not talking about the manufacturers and the industrialists because they have all sent their workers away to go and perform their civic duty.

    “Farmers did not go to their farms because they want to exercise their franchise. If you do the computation, your guess is as good as mine in terms of what the nation is losing, we should learn.”

    An economist, Mr. Chijioke Ekechukwu, believes the  postponement of the elections will affect credit rating and already threatened portfolio investments in the country.

    Ekechukwu noted that the investments would likely flow out in large value.

    According to him, beginning from Feb. 16, the stock market will go bearish due to the postponement.

    “What will the international observers who already had their return tickets for Monday or Tuesday do after the failed election.

    “They will indeed fly back and not come back as they didn’t budget for any extra cost and extra stay.

    “What will happen to school children who are at home presently because of the election.’’

    Ekechukwu expressed worry that Nigerians would be made to bear the losses.

    A Lagos businessman, Damilare Akinseye, said INEC completely destabilised him by the postponement announcement.

    He said: “They have thwarted all my plans. Things I was supposed to have done on Friday, I had to shelve them so that I could be around for the elections. Now, they want me to incur losses again next week?

    “It continues to baffle me why a country that has spent so much preparing for this election will at the last minute cancel it. Considering all the monumental sums that have been given to INEC, what is the issue of logistics here?

    A tomato seller at Mile 12 market lamented low patronage, stating that most of their customers had either travelled for the polls or were scared to  come out.

    She said: “You can see how everywhere is still empty. A lot of people travelled to their villages to vote. They should have made this announcement some days back so that people would not travel. Now, they have made us to lose money and next Saturday we will not sell. They should be considering the sufferings of ordinary Nigerians before taking such decisions,” she said.

    Island Club Manager, Olubunmi Fasan, said: “ a lot of economic gains that would have accrued if today had not been chosen earlier could not be achieved.

    “A lot of people had their occasions cancelled, students came back from school, foreign delegates who travelled to Nigeria to monitor the conduct of the election are now forced to stay back or go back to their base to come back next week for the same exercise.”

    Edo food vendors lament

    Food vendors in Edo State were hard hit by the postponement.

    Some of them had already arrived polling centres as early as 6 a.m. with cooked food to sell only to be told that the elections had been shifted by a week.

    One Mrs. Theresa Igbinosa, a food vendor at Western Boys High School in Ikpoba-Okha ward 2, said she spent about N50,000 to prepare the food.

    “I am not only sad but very angry. I spent so much money and woke up as early as 2 a.m. to prepare this food. I have not even slept at all,” she said.

    “My problem now is what to do with the food because nobody is here to sell to and I am so confused right now. I even borrowed the money from my neighbour with a promise to pay back after sales.

    “INEC is not fair to us at all. Why did they have to wait till this morning to cancel the elections?”

    Osifo Lucky, another food vendor, said, “there is no hope for the poor in the country. Nobody puts you into consideration before taking any decision. They just wake up and do whatever that pleases them.

    “As you can see for yourself, I am looking at my food and the food is looking at me too. No buyer; the school is empty.”

    A Kano resident, Madam Martha Moses was full of pity for one of her friends, who according to her, had to reschedule the marriage of her son from yesterday to Saturday, February 23, the new date picked by INEC for the postponed elections.

    “You can see this kind of situation, where parents have committed a lot of money to prepare for the wedding.

    “Now, the wedding cannot even take place on February 23. This is a shame, as we have lost a lot of money to the inefficiency of INEC leadership to organise this election.”

    Commercial activities in most parts of Lagos were dull for much of yesterday.

    Most markets and petrol stations remained shut until late in the day while vehicular traffic was very low.

    The situation was the same in Aba North and South, Ugwunagbo, Ukwa West, Umuahia North and South as well as Isiala Ngwa North and South in Abia State.

    Patronage at some of the markets in Umuahia and Aba, including Ubani Market, Ariaria, Eziukwu and  Ahia Ohuru  was very low.

    Kano residents count losses

    Mixes feelings trailed the sudden postponement of yesterday’s Presidential and National Assembly Elections in Kano as residents lament the adverse effects of the Independent National Electrical Commission’s decision.

    Apart from engaging in panic purchase of food stuff and unsolicited withdrawal of money through ATM, a number of non-natives resident in the state had travelled to their various home states for fear of the unknown.

    Speaking to our reporter, cross-section of residents condemned the postponement, citing its economic implication on the part of the citizens and the federal government.

    According to Chief John Ikuku, “the postponement of this election is totally unnecessary. How can INEC suddenly wake up from slumber and said it was no longer ready enough to conduct the elections when sensitive materials have already been distributed across the nooks and crannies of the country?

    “Look, my brother, I have never witnessed this kind of scenario and I don’t think it has happened this way anywhere in the world. I have a feeling that this could be a ploy to rig the election.”

    Madam Martha Moses said, “I am disappointed with INEC. I think they are not serious, despite all encouragement and support given to them by the federal government to conduct the election. More so, despite assurances from INEC leadership, they came at this 11th hour with this laughable postponement without recourse to the negative effects and consequences upon the average Nigerian.

    “INEC leadership has totally lost credibility and the chairman should resign in shame because he has failed Nigerians, and I don’t think he can ever get it right.”

    Madam Martha added that, “the most painful aspect of it is that a friend of mine is to wed today, but the wedding was put off and slated for February 23. You can see this kind of situation, where the parents have committed a lot of money to prepare for the wedding.

    “Now, the wedding will not hold next week. As such, this is a shame on the part of INEC as we have lost a lot of money due to the inefficiency of INEC leadership to organise this election.”

    The Nation reports that INEC in Kano has started retrieving sensitive materials conveyed to various Local Government Areas for onward deposit to the Central Bank of Nigeria for safety.

    Kano remains calm and quiet as at the time of filling this report, as everyone is moving about their businesses unhindered.

    Security operatives were however sighted at strategic positions, performing their normal duties.

    Speaking to our reporter, the spokesman of Kano State Police Command, Haruna Abdullahi, said there was no cause for alarm as police is on top of the situation.

    He urged residents to remain law-abiding and go about their normal businesses without fear.

    Sani Bello calls for patience

    Niger State Governor, Alhaji Abubakar Sani Bello has described the postponement of the general elections by one week as unfortunate development but appealed to Nigerians to exercise understanding and patience

    He said INEC must have weigh the various options before arriving at the painful conclusion of postponing the election.

    In a statement signed by his Media and Publicity Coordinator, Mr. Jide Orintunsin, the Governor expressed hope that the decision of the electoral body is to ensure a credible election that would be satisfactory to the people.

    “The postponement of these elections are unfortunate but going by the INEC Chairman’s statement the decision to shift the election was necessary for the commission to successfully deliver its mandate of conducting a credible, free and election and for the consolidation of our democracy.

    Bride-to-be laments elections postponement

    The postponement of the Presidential and National Assembly elections has left a bride-to- be in a dilemma as the Independent National Electoral Commission’s  (INEC) timetable has disrupted her marriage plan for a second time.

    Miss Rita Osawende’s wedding was originally fixed for yesterday but was unexpectedly re-scheduled for Saturday, February 23, the same date she had picked because of the earlier clash of date.

    Osawende told the News Agency of Nigeria (NAN) in Benin that all arrangements for her big day had been concluded for February only for INEC to upset her plan again.

    “INEC please help me revisit this issue,” she said.

    “The original date was fixed for February 16, but as soon as I knew its elections day, it was postponed to February 23rd.

    “What do I do? All arrangements have been made.

    “I have printed and distributed my invitation cards for the wedding. I am so confused,” NAN quoted her as saying.

  • Industry market share ‘improved in 2017’

    INSURANCE industry operators have continued to improve their drive and commitment to increasing revenue and their respective market share despite the recession experienced  in 2016, Chairman, Nigeria Insurers Association, Mr Tope Smart, has said.

    He made this known in the association’s 2017 Insurance Digest made available to reporters.

    The insurance market prospects, according to him, stagnated due to the decline in people’s purchasing power.

    Besides, most individuals and commercial businesses, he said,  had prioritised the survival and sustenance of their business above insurance coverage of potential risks.

    He said notwithstanding, the industry is still expecting the release of the roadmap for transition to a Risk Based Insurance Solvency Regime in Nigeria by its regulator National Insurance Commission (NAICOM).

    During the period under review, the roadmap is expected to enable the regulator take forward looking perspective so as to be able to identify possible problems before they occur and take proactive  counteractive actions for a more efficient and effective oversight of insurance institutions while making the industry more virile and profitable.

    “It is hoped that the repositioning of the regulatory and compliance landscape coupled with the commitment of industry operators should be a catalyst fo significant growth in premium income in the coming years through increase market penetration and ultimately leading to increased contribution to the country’ GDP,” he added.

    Speaking on the operating environment, he said emerging from a gloomy and hazy economy, Nigeria was again set on the part of recovery from its precarious economic position plagued by recession.

    He said: “At the time, GDP had for the fourth consecutive quarter, contracted. The situation which became more pronounced in the first quarter of 2017 was worsened by the low crude oil price as crude oil undoubtedly remains Nigeria’s major source of revenue.

    “Revenue continued to drop as the country was confronted with decline in oil production due to frequent shut-ins and shut-down of trunk lines at various oil terminals”, he noted.

  • 2019: NACCIMA denies backing Atiku

    The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has denied backing Alhaji Atiku Abubakar, the Presidential Candidate of People’s Democratic Party (PDP) in the 2019 Presidential election.

    NACCIMA made this known in a statement made available to The Nation signed by National President, Iyalode Alaba Lawson also denying media report that it is backing Atiku’s plan privatisation of the Nigeria National Petroleum Corporation (NNPC) if elected.

    According to NACCIMA, in no time, did the corporate body indicate that the Association is backing a particular candidate.

    Read also: Obasanjo an election rigger without peer – Tinubu

    The statement read, “Our attention has been drawn to a news report on a daily of 22nd January 2019 with the headlines “ NACCIMA and others back Atiku on NNPC Privatization”. This is to clarify that at no time did NACCIMA as a corporate body indicate that the Association is backing a particular candidate”.

    “The Association remains the voice of the Nigerian Business and the leading national member of the Organized Private Sector, non-partisan in the ongoing current political campaign as the election draws near”.  

    “NACCIMA remains mainly focused on promoting and advocating for conducive environment which will promote the activities of the Private Sector for inclusive economic growth and development”.

    “This clarification has become necessary in view of the spate of report suggesting that NACCIMA is in support of a political candidate. Our position remains promoting what is best for the Nigerian economy and not in support of political candidate contesting for election at all levels”.

  • Industry pays N143b claims to policyholders

    Insurance firms have paid N143 billion as claims to policyholders, Commissioner for Insurance, National Insurance Commission (NAICOM), Alhaji Mohammed Kari has said.

    He spoke at the weekend at the workshop on the End-of-Year Sector Review/Projection 2019: SIP in Perspective”for reporters held at the Civic Centre, Lagos.

    The commissioner, represented by the Deputy Commissioner for Insurance, Mr. Sunday Thomas, said the claims, paid in the quarter of this year, represents a 30 per cent increase on last year’s N110 billion for the same period. He said the figure could be higher by the end of the year.

    He noted that though this was a good sign that underwriting firms had improved in claims payment, some operators were still defaulting in claims payment.

    He said the gross premium for the industry during the period under review stood at N315 billion, a 22 per cent increase over the N258billion for 2017.

    He added that the gross claims   for the period were N143 billion, a 30 per cent increase over the N110 billion reported for the same period last year.

    He said: “The outlook may not be as rosy as we all would have liked but NAICOM sees the silver lining and is fully committed to making the most of it. We have set for ourselves a clear task: to improve the aggregate numbers by enabling individual operators to optimally serve a much larger customer pool with a more varied basket of products. The end game for us is to increase the insurance uptake ratio among the populace and we have a number of initiatives in place towards achieving this.

    “Financial inclusion is one of the tools we envisage to help us improve market penetration. The initiative is premised on the fact that getting the mass of the financially excluded to embrace insurance in one form or another will have a positive impact. Accordingly, insurance companies are being encouraged to have a buy in into our microinsurance initiatives for the market. The Takaful market is still grossly under accessed by the public, there is therefore the need for aggressive promotion in aid of financial inclusion.

    “In addition, efforts are being made to expand the distribution channels for insurance products because the traditional channels are becoming too restrictive and suboptimal. Whereas Bancassurance has received the most attention, there are other initiatives to reach out to the public.

    “The commission has developed a guideline for the creation of State Insurance Producers (SIP). It is expected that state governments participation in enforcement of compulsory classes of insurance will enhance compliance and deeping of the market. States will in the process creat employment and enhance their internally generated revenue.”

    He stated further that NAICOM fully appreciates the necessity of having insurers that can safely carry the risks they underwrite, As such risk-based supervision is being adopted as a regulatory tool because it is proactive and addresses the key issues of corporate governance, risk management, capital adequacy and others.

    “We are also exploring ways to ensure that insurance companies are adequately capitalised to enhance their risk-bearing capacities. This was the thinking behind the capital initiative of the commission.

    “Achievements of the goal that we have set for ourselves is predicated on the market’s ability to attract business and customers need to have confidence in operators. To this end, NAICOM has championed an industry-wide rebranding project to burnish our reputation, but we cannot do it alone. The support of the media, especially those of you here, under the aegis of the National Association of Insurance and Pension Correspondents (NAIPCO), is crucial.”

    He however urged the media to help develope the industry.

    “How can the media help us going forward? The agenda-setting role of the media makes it a formidable ally to have for any social engineering effort to succeed. We, therefore, urge you to partner NAICOM to clear the cobwebs of misconception about insurance among the populace and propagate the necessity and usefulness of insurance in life and in business. Insurance, like any other business, needs a positive image. As the regulator, NAICOM issues policy directives and guidelines from time to time. We need all the publicity you can give us on all our initiatives. We appreciate the role of the press as society’s watchdog and we value feedback from you,’’ he said.

  • Experts chart course for virile industry

    Experts, stakeholders and professionals in the built environment and related industries have met in Lagos to chart a new course for the sector.

    It was at the seventh edition of this year’s Real Estate Unite Summit, a yearly event organised by 3INVEST, tagged “The conversation summit,”at the Eko Hotels and Suites, Victoria Island.

    The event brought together developers, suppliers, service providers, investors, home buyers and occupiers. It  featured presentations, panel discussions, exhibitions and award to 30  investors in the sector.

    The event convener and Chief Executive of 3Invest, Mrs. Ruth Obih-Obuah, noted that the industry remains the most transformative sector and one of the most effective areas for poverty alleviation and job creation.

    She is confident that if adequately structured, the sector could fast-track growth and development, adding that it could generate massive employment.

    But to achieve this, Mrs Obih-Obuah  spoke of the need to track the economic dynamism and advocate policies that will address the many challenges of the sector from reaching its full of potential.

    The Chief Executive Officer, Palton Morgan Holdings, Adesope Adeyinka, contended that policy somersault of government had become an impediment to successful public-private partnership (PPP) programme in the real estate sector. The model, he explained, is an ideal platform for the country to capitalise on considering that private sector funding is very important for infrastructural development.

    To this end, Adeyinka said it was time that the PPP framework properly articulated to make it a viable option for funding housing projects.

    The Managing Director, Urban Shelter Limited, Saadiya Aliyu, shared Adeyinka’s views. She called for social housing scheme that would cater for the housing needs of people in the informal sector.

    She noted that the 17 million housing needs in Nigeria is mind boggling, hence, the need to put in place a new model that is transparent. This should be by government in partnership with private sector.

    The Permanent Secretary, Lagos State Lands Bureau,  Olabode Agoro, restated the commitment of the state government in easing the process of land titles in the state, a consideration that led to the introduction of fully computerised and secure process for issuing Certificates of Occupancy.

    Agoro said that the state government is aware of the challenges many home owners are going through in getting approvals for their land titles and Certificate of Occupancy, assuring that the government was working hard to address the tide. On a monthly basis, the Permanent Secretary disclosed that over 500 applications are received from prospective property owners.

    He said the ministry is scanning millions of documents of approved Land titles to an online portal which would aid the application for land titles and Certificate of Occupancy from the comfort of an applicant’s home.

    “You can apply, pay and within 30 days of your application, your approval will be ready. lt became essential to move in line with modern technology and to put in place new and better ways of doing things in order to improve service delivery,” he explained.

    Although he took a swipe at developers who are in the habit of getting land to build estates but end up selling them in plots at an exorbitant prices to customers. “We used to give developers in the past 45 hectares to build their estates, but some of them will abandon the land even when they know that the Land Use Act compel them to developed the land within two years and if not the land can be taken over by the state government,” Agoro explained.

    He noted that what is more worrisome is that some developers acquire land from the government and leave it for some time so it could appreciate, and they would then begin to sell. This, he said, is against the agreement they have with the government when they acquire those lands.

    “We are coming after developers who have been given land by the state government but refuse to do anything on the land after two years of acquisition. We have fewer lands and we will come after them,” he said.

    Over the last seven years, the summit has become an avenue for stakeholders in the industry to engage in discussions on issues in the sector and to discuss new developments to unlock some these bottlenecks stifling the real estate sector.