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Tag: industry

  • NCRIB chief advises insurers on industry growth

    Brokers have advised insurers to focus on growing the industry as they prepare for the new recapitalisation regime.

    The brokers under the umbrella body of the Nigerian Council of Registered Insurance Brokers (NCRIB) spoke with reporters in Lagos.

    NCRIB President Shola Tinubu said they focus on how to boost the industry.

    He said the Council has put some committees in place to see how the new policy would affect their members, adding that some consumers were expressing concerns on  how the policy would affect them.

    He said anytime the insurers market went into a flux, it becomes a challenge for brokers to guide their clients on the best security to adopt.

    He assured that the NCRIB will support their members through the emerging challenges.

    He said: “It is noteworthy that to ensure a more virile insurance industry, the National Insurance Commission (NAICOM) recently announced new capital regime for insurance companies. The new capitalisation system tagged, ‘Recapitalisation of insurance companies, the tier-based minimum solvency capital,’ would be partially introducing the risk-based capital model in a three-tier recapitalisation system, whereby firms would be graded as tier-three, tier-two and tier-one.

    “However, it is noted that the tier system  is independent of the assessment for solvency. Such that companies classified as Top Tier could possibly have significant solvency issues.

    “Invariably, insurance companies would be looking at different options to respond before the deadline of January 1, 2019. It is definite that several options would be contemplated by the companies, including the options of injection of capital, mergers and acquisitions. Whichever strategy chosen and no matter how disruptive, I would like to enjoin the companies to focus on how to grow the insurance industry as well as how to make insurance an imperative.’’

  • ‘Why varsities are yet to meet industry, local economy needs’

    THE Director-General, Nigerian Institute of Social and Economic Research (NISER), Dr. Folarin Gbadebo-Smith, yesterday advocated overhauling of the policy on university education to fit the needs of industry and local economy.

    He described as unacceptable, the rigid, unchanging curriculum and complex university education system, and attributed the complexity to Nigeria’s underdevelopment.

    Calling for increased and sustained economic and social development, the NISER D-G urged the Federal Government to build infrastructure and increase lecturers’ remuneration, in order to attract and retain Nigeria’s best in higher education.

    He spoke while delivering a public lecture organised by the Consortium for Advanced Research Training in Africa (CARTA), held at the College of Medicine, University College Hospital (UCH), Ibadan.

    The lecture was titled: “Broken Links in the Chain of Development: Higher Education in Nigeria and Africa, a Complexity Theory Perspective”.

    Gbadebo-Smith said controlling the power of Federal Ministry of Education and National Universities Commission (NUC) on universities had made higher education static and unyielding to change.

    “In Nigeria, the power of the Ministry of Education and NUC affects the ability of the individual university to experiment, react or adapt to changes in demand by the industry, the private sector or the professions. Central control and the attempt to make all institutions conform is a constraining factor. Conformity limits dynamism and allows influence of tradition and traditionalists to dominate.”

    He called for a system, which allowed universities to specialise in particular courses for efficient and qualitative education delivery.

    Gbadebo-Smith said forcing universities to run a uniform system was a major constraining factor, which had made the universities rigid to change.

    Noting that higher education needed fixing, he said: “It seems it is inattentive to issues of context, national development, challenges of the 21st century, including globalisation and digitization.”

    The University of Ibadan CARTA focal person, Prof. Akinyinka Omigbodun, said African and Nigerian governments must invest in human capacity development, adding that Africans must be equipped to solve the continent’s problems.

    According to him, “CARTA is structured to fast-track the career development of the next generation of academics; build communities of fellows and mentors; reduce their isolation and give them a nurturing environment for research.”

    Declaring the lecture open, the Vice Chancellor, University of Ibadan, Prof. Idowu Olayinka, represented by the Deputy Vice Chancellor (Administration), Prof. Kayode Adebowale, called for a review of the national policy on education to reflect modern day realities.

    He condemned infrastructural decay and underfunding of public institutions, stressing the need to evolve a sustainable funding regime in the nation’s citadel of learning.

     

  • Industry gets 312,291 new pension contributors

    •Records N8.23tr pension assets

    The number of contributors under the Contributory Pension Scheme (CPS) has increased by 312, 291 from 7.89 million as at December, last year,  to 8.14 million as at last June.

    Besides, net assets value of the pension assets of the contributory pension fund was N8.23 trillion as at June, 2018, representing an increase of N 716.94 billion, up from the value of N 7.52 trillion as at December 31, 2017.

    PenCom Acting Director-General, Mrs. Aisha Dahir-Umar who spoke in Lagos, said the industry has witnessed significant growth.

    Represented by the Head, Contributions Bond Redemption Department, Mr. Olulana Loyinmi, who presented her keynote address at the third Annual National Insurance & Pension Corresspondents Conference,  she attributed the increase to new contributions received, interest/coupon from fixed income securities and net realised/unrealised gains on equities and mutual fund investments.

    Speaking on the enhancement of pensions of retirees under the Programmed Withdrawal, the PenCom chief said  to enhance the monthly pension of retirees in the CPS, the Commission initiated the Pension Enhancement Programme.

    She stated that it was discovered that the returns being generated by the Pension Fund Administrators (PFAs) on the balances of the Retirement Savings Account (RSAs) of majority of retirees could be used to enhance their monthly pensions.

    She said: “Consequently, the Commission sought for and obtained the approval of the Secretary to the Government of the Federation to implement the pension enhancement, which resulted in increased monthly pensions for most retirees receiving pension under the Programmed Withdrawal arrangement. Accordingly, the PFAs commenced the enhance-ment of pensions of all retirees under Programmed Withdrawal with effect from December 2017.

    “The implementation of the pension enhancement is one of the significant milestones attained since the commencement of the CPS. It confirms that the CPS has workable internal mechanisms to respond to legitimate demands of retirees as they seek a reasonable retirement income. The Commission intends to sustain this periodic review exercise in line with relevant provisions of the law.

    “The Commission also recently introduced a new template for programmed withdrawal, which took effect from 15th May, 2018. There has however being concerns expressed by some stakeholders. The Commission in its usual responsive and consultative manner has decided to review the template. Consequently, the Commission has directed that Pension Fund Administrators (PFAs) revert to the old template till further notice.”

    She further said the Commission issued a circular on Withdrawals from Voluntary Contributions (VC) last November, adding that the circular was necessitated by the observed incidences of high rates of withdrawals from VCs by contributors. This, she said appeared to negate the main purpose of using such contributions to augment pensions at retirement.

    She said the Commission is seeking to ensure strict adherence to Anti-Money Laundering provisions and relevant taxes laws.

    The main thrust of the circular, she noted, is that 50 per cent of the VCs could be withdrawn once in every two years, while subsequent withdrawals would be on incremental contributions from the last withdrawal.

    The remaining 50 per cent of VCs shall be domiciled for augmenting pensions upon retirement, she added.

  • How industry can grow, by stakeholders

    •Awosika warns against market disruptors

    TO grow the industry, stakeholders should  embrace change and respond to the economic, social and technological needs of their clients.

    Stakeholders, who spoke at this year’s Presidential Valedictory Lecture for the Chartered Insurance Institute of Nigeria (CIIN)  President and Chairman of Council, Mrs. Funmi Babington-Ashaye, said  firms  should embrace new ways of delivering their services to meet the expectation of the new generation of consumers.

    The lecture, delivered by Mrs Babington-Ashaye, had as its theme ‘’Insurance and generation next-Meeting the needs of stakeholders’’.

    FirstBank of Nigeria Limited Chairman, Mrs Ibukun Awosika, said insurance model is not sustainable because change was inevitable.

    Mrs Awosika, who chaired the event, said the industry will die if it does not open itself to change and embrace the new space, stating that there are a lot of disruptors that are ready to take over the business and offer the same services the insurance companies or the brokers think they are offering.

    She said the potential for growth was huge, because the industry is at the least of its capacity. ‘’There is a bit of complacency in the industry, so you might not survive the next generation if people and technology come in with the new things they have,’’ she stated.

    Mrs Babington-Ashaye looked the fundaments of change in the industry, charting the future for the profession.

    She said for the industry to catch-up with the next generation, players must leverage technology, adopt new ways of working, repackage products, improve  on pricing strategy, and data mining.

    The industry, she further said, is at the threshold of its evolution where development in technology would significantly impact its products offerings, operations and the skill sets of personnel required to deliver value to the diverse stakeholders, in the near future, which will be dominated by next generation.

    ‘’Given the declining inflow of new entrants into the profession, the fear of a talent gap in rife. We need to change the wrong perception by showcasing the career opportunities that exist, the product we develop, the risks we assume and the professional advisory services we provide,” Mrs Babington-Ashaye said.

    Discussants, who include Group Managing Director, Custodian Investment Plc, Wole Oshin; Director-General, Nigerian Insurers Association (NIA), Yetunde Ilori; Lagos Chamber of Commerce and Industry Director-General, Muda Yusuf and Consolidated Hallmark Managing Director and  CIIN Deputy President, Eddie Efekoha, agreed on the need for firms to bring flexibility and varieties to the system.

     

     

  • How paucity of funds stifled revitalisation of textile industry

    The Minister of State, Industry, Trade and Investment, Hajia Aisha Abubakar has decried the low production capacity of all the cotton producing companies in the country despite the different reforms initiated.

    The minister, who disclosed this during a media chat in Abuja, stated that the current administration at inception was determined to revitalise the textile industries as part of its campaign promises by visiting the different textile factories in Lagos, Zaria, Kaduna and Kano.

    However, she lamented that the ministry discovered abysmal level of growth with regards to production capacity. “The significance of the textile industry and its impact on the collapse on the nation’s economy is best illustrated by the fact that, at its height, the sector had created over 800,000 jobs, representing 25% of the total number of jobs in the manufacturing sector, second only to the government in the employment of labor. Also, there were 175 textile mills in the country during its golden era, (i.e. 1985 – 1991) out of which today, all but 27 of them have since gone under. In an attempt to understand the sector and the many challenges it faced, we traversed, held exhibitions, and had several but endless meetings.  We even met and held extensive talks or rubbing of minds with a broad spectrum of members and leadership of the textile labour union.”

    She stressed that other impediments hindering greater speed in the actualisation of the President Muhammadu Buhari’s blue print of action in the textile sector include the troubling phenomena of counterfeiting and smuggled textile materials especially from China.

  • NACCIMA calls for implementation of 2016 Mining Road map

    The Nigerian Association of  Chambers of Commerce,Industry, Mines and Agriculture (NACCIMA), has charged the Federal Government to implement the 2016 Mining Road map for the growth and develoment of the Nigerian Mining industry so that the country can truly move into a future without oil and shared mining prosperity.

    Speaking at a press briefing by the association’s midyear review of the Nigerian economy, the President of NACCIMA, Iyalode Alaba Lawson said there are still lots of works to be done because the country is largely a mono product economy and the non-oil sector needs to be supported. She urged the government to stop the over-dependence on oil, she talked at length on government’s policies and the impact such policies will have on the Nigerian economy.

    She berated the state of the economy, calling on the government to work on improving Internally Generated Revenue (IGR), and block leakages caused by corruption, inefficiency, insecurity and poor policy implementation. According to her, the economy has been experiencing steady negative growth rate for the past five quarters before officially slipping into recession in the third quarter of 2016.

    She noted that the negative growth was as a result of drastic reduction in earnings from crude oil sale caused by the decline in oil prices, persistent increase in inflation, unemployment and interest rates; unstable foreign exchange system as well as government’s failure to diversify the economy from mainly crude oil earnings.

    Lamenting that the nation is still highly dependent on oil, she posits that with the proper implementation and effective monitoring of the fiscal and monetary policies of the Economic Recovery Growth Plan (ERGP), the nation’s economy will improve.

    Lauding the ERGP, she called on government not to let it go the way of other government ideas, which are usually labored by proper implementation, monitoring, tracking, feedback and information dissemination.

     

    Urging government to ensure that timelines for each milestone of the EGRP are strictly adhered to, she pleaded that borrowing be limited to investments and capital projects alone and not for consumption.

    Frowning at the nation’s external debt, which stands at $13.8 billion presently, she said this action limits the funds available for private companies from financial markets, which in turn worsens the economy.

    According to her, this crowding out effect creates a demand pressure that drives up coast of funds in the form of high interest rates, which discourages investments and economic growth.

    Lawson further called for a single digit interest rate system, saying the high interest rates have been a major impediment to enterprise development. “Unemployment is on the increase, currently at almost 15% and worsened by inflation and interest rates. NACCIMA is calling on the government to ensure banks set aside 10% of their profit after tax every year for the development of SMEs,” she added.

  • We’ve attracted over $200billion investments to Ogun – Amosun

    Governor Ibikunle Amosun on Friday disclosed that his administration’s has attracted over $200bn investments to Ogun State in the last couple of years.

    Amosun said the administration would continue to create an enabling environment, improve upon the infrastructural facilities and security to attract more  investors.

    The Governor made this known while presenting new Executive 18 – Seater bus to the National Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), at the Governor’s Office, Abeokuta, the State capital.

    Amosun who spoke through the Secretary to the state Government (SSG), Taiwo Adeoluwa, said Ogun State has emerged the industrial hub of Nigeria, having beaten Lagos and Kano States respectively, to it to become the investors’ first destination of choice.

    Read Also: Pray for me to hand over better Ogun State – Amosun

    He noted that the administration would not have been able to turn the fortune of the state around for good without the active support of NACCIMA, the organised private sector and other stakeholders, saying the bus donation was meant to further acknowledge the contributions of the body to the state’s success story.

    And receiving the key of the bus, the National President of NACCIMA, Iyalode Alaba Lawson, said since her emergence as head of NACCIMA, it has brought tremendous improvement as  investors continued to invest in the state, pledging that more investors would soon come to further boost its socioeconomic status.

    Chief (Mrs) Larsson lauded Amosun for his infrastructural development, provision of good roads and adequate security, saying those were the issues investors had first considered before coming to the state.

  • Why we are getting industry recognition, by Dana Air

    Despite on-going audit into its operations by Federal Government, Dana Air seemed to be enjoying investors’ confidence. Last week, an original equipment manufacturer, opened discussions with the airline’s management to pave way for the acqusition of some airplanes.

    The deal to get new airplanes, it was learnt, will boost the airline’s flight operations and put the carrier in a pole position to compete with others using  relatively newer and fuel efficient  equipment.

    Dana Air Managing Director, Jacky Hathiramani, however, saw the development as his airlines’s contribution to the development of the aviation industry and providing safer flying experience for air travellers.

    Such strategic positioning, according to stakeholders, led to the recent  conferment of  the Platinum Excellence Leadership Award by the Association of Northern Nigerian Students (ANNS), on Dana Air Chief Executive Officer in Lagos.

    The Meritorious Leadership Award came less than a week after the Dana Air boss won his third Best CEO of the year award at a colorful event organised by industry watchdog, Nigerian Aviation Awards (NIGAV).

    The NIGAV, while confering the award noted that it is in “recognition of Hathiramani’s exceptional track record of performance, exemplary leadership style, creative contribution to the development of the aviation industry, promotion of youth welfare and avowed nationalistic humanitarian service and Corporate Social Responsibility of his conglomerate.”

    Responding, Hathiramani thanked the association for the honour and reiterated his commitment at working with relevant agencies and stakeholders on programmes that will improve the aviation industry and the travelling public. He also pledged to continue promoting the welfare of the youth as the leaders of today and his service to humanity.

  • ‘Lagos Land Use Charge Law failed basiç legislative procedure ‘

    ‘Lagos Land Use Charge Law failed basiç legislative procedure ‘

    Nigeria’s Organised Private Sector (OPS) on Friday said the controversial Land Use Charge Law failed to meet basic legislative procedure before it was ratified by the Lagos House of Assembly.

    In its submission at a stakeholders forum on the new law organised by Lagos Chamber of Commerce and Industry (LCCI), the OPS said Lagos lawmakers ignored public outcry against it.

    Mr Timothy Olawale, OPS representative, said that the OPS was given less than five minutes to express their concerns during the public hearing on the review of the law.

    “The heaŕing was like a premeditated arrangement; the lawmakers failed to take into account public outcry against the review given the effect it would have on property owners, going by depreciation and devaluation of naira.

    “We wrote a letter as a follow up to the public hearing stating our position, still it was ignored,” he said.

    The OPS said that the citizens should not be held liable for government’s negligence to review the law every five years as stated in the provision of the law.

    “Government is toying with people’s lives and survival of businesses. Things are pretty hard, and perhaps because you are on the other side, you do not know.

    “Businesses are barely surviving. The income of Nigerians in the past five years, salaries and rental income alike, has been bastardised by inflation rate.

    “We learnt that since the law was passed, many property owners had developed hypertension because the assessed value of property has also been reviewed upwardly by over 500 per cent,” he said.

    The OPS said that government’s failure to review the law in the past 15 years notwithstanding, any increase above 100 per cent was unacceptable.

    The News Agency of Nigeria (NAN) reports that OPS comprises of Manufacturers Association of Nigeria (MAN), Nigeria Employers’ Consultative Association (NECA), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

    Others are; National Association of Small and Medium Scale Enterprises (NASME) and National Association of Small Scale Industries (NASSI).

    NAN reports that Lagos State Government recently repealed its 2001 Land Use Charge Law, and replaced it with a new Land Use Charge Law, 2018.

    The State House of Assembly had passed the bill on Jan. 29, while the Governor signed it into law on Feb. 8.

    Also commenting, Dr Dotun Bamigbola, Vice President, Nigerian Institution of Estate Surveyors and Valuers, recommended upward review of Relief Rate to accommodate provision for maintenance cost and other outgoing.

    He noted that most owners could only pay from property income, and proposed that charge rate should take cognisance of rental trend which in most locations was stagnant or going southward.

    Earlier, Mr Akinyemi Ashade, Lagos State Commissioner for Finance, said that the law would entrench a regime of self-assessment that allows property owners to make their own calculation and know their rate with the help of professional valuers.

    Ashade said that various reliefs had been made available to payers, including a general 40 percent relief for all property liable to LUC payment.

    NAN reports that the stakeholders erupted in uproar of displeasure several times during the commissioner’s presentation while some stormed out of the conference hall.

    The LCCI spokesperson, Segun Alabi, on several occasion entreated the stakeholders to maintain decorum while the forum lasted.

    Read Also: Land Use Charge: Lagos govt faults ‘outrageous amount in circulation’

  • Maritime industry ‘to grow by 2.5 – 5% in two years’

    Maritime industry ‘to grow by 2.5 – 5% in two years’

    The maritime industry is projected to grow by 2.5 – 5 per cent between 2018 and 2019, a forecast has said.

    The Nigerian maritime industry forecast for 2018/2019 was unveiled yesterday in Lagos by Nigerian Maritime Administration and Safety Agency (NIMASA) Director-General Dr. Dakuku Peterside.

    Total fleet size is to grow by 4.08% in 2018 and 4.41% in 2019. Oil tanker fleet size will decrease by 2.23% in 2018 and increase by 1.7% in 2019. The non-oil tanker fleet size is projected to increase by 8.15 % in 2018 and 8.72% in 2019. Oil rig count is projected to increase by 27.67% in 2018 and 0% in 2019.

    The forecast, the first of its kind in the sector, is intended to serve as a compass for local and international stakeholders willing to do business in the Nigeria maritime domain.

    Peterside said the country’s economic success was dependent on the maritime sector.

    “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.

    “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. We will continue to work out incentives and maritime sector specific interventions to attract investment,” Peterside said.

    Minister of Transportation Rotimi Amaechi said the maritime domain remained the dominant medium for global shipping and commerce.

    To him, it holds the key to unlocking the streams of opportunities in renewable energy, fisheries, maritime transport, waste management, tourism and biodiversity.

    Amaechi said: “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 drives 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.”

    The Secretary General of the Abuja Memorandum of Understanding (MoU) and former DG of NIMASA, Mrs. Mfon Usoro, praised the forecast as a great interaction with industry players to develop the sector.

    A Faculty at the Lagos Business School, Dr. Doyin Salami, said forecasts were essential tools for growing an industry. He added that the gaps in the sector must be filled by policy makers to realise its potential. He urged all investors, local and international, to take the forecast serious as a way of enhancing the growth of their businesses.