The Nation Newspaper

Tag: unemployment

  • Unemployment: ‘Reduce interest rate to encourage entrepreneurship’

    A member of the Lagos State House of Assembly, Yinka Ogundimu has expressed sadness at the high interest rate placed on loans, saying it needed to be reviewed downward to encourage entreprenureship and address the problem of unemployment.

    Ogundimu who represents Agege 2 constituency gave this advice while addressing the Lagos House correspondents at a special interview programme tagged: “Time out with the Press” at the conference room of the Assembly, Alausa Ikeja.

    He said, “there is need for the banks to support the people by reducing the interest rate, that is the only we can encourage our youth to be self employed. The current 23-25 percent is killing business,” he noted.

    The lawmaker who is a graduate of Business Administration stressed that the problem of unemployment in the country could not be solved by too much reliance on government, adding that what is expected of the latter is “creating an enabling environment for business and entreprenureship to thrive.”

    He added that youths should also acquire the required skills in any chosen vocations together with a good sense of identifying the need of the environment in which they reside.

    Ogundimu explained that whenever any society is comprised of many idle hands, it would automatically lead to increase in crime and culminate in insecurity.

    “Youths are easily deceived and co-opted into engaging in crime. So our youths need to be engaged so save the society and our economy,” he said.

    The lawmaker also pointed out that over reliance on crude oil as a means of foreign exchange has crippled the economy, saying agriculture which ought to be the mainstay has been abandoned.

    While stating some of his achievements as a lawmaker, Ogundimu said “no other representative that had represented his constituency before had been able to surpass my contributions towards the upliftment of my people.”

  • ‘I will combat unemployment among lawyers,’ says Akintola

    ‘I will combat unemployment among lawyers,’ says Akintola

    Chief Niyi Akintola, Senior Advocate of Nigeria (SAN) and contender for the presidency of the Nigerian Bar Association (NBA), spoke with journalists in Lagos. The pro-democracy activist unveiled his agenda, promising that his five-point agenda will solve unemployment among lawyers and reposition the legal profession, among other things. Assistant Editor ADEKUNLE YUSUF was there. Excerpts:-

    The choice of next Nigeria Bar Association President has been zoned to the Southwest and we learnt that ‘Egbe Amofin Oodua’ (Association of Yoruba Lawyers) has embarked on the search for a candidate. Has the body endorsed any candidate?

    The Egbe Amofin Oodua has had two meetings on this issue of NBA President candidacy. The first meeting held in Abeokuta while the second held last Saturday in Ibadan. The body set up a screening committee, headed by former NBA President, Mrs. Priscilla Kuye and the committee is expected to submit its report on February 8, 2014. The decision of the committee is still subject to ratification of members. So, for now, there has not been anyone endorsed by the body.

    You once ventured into politics when you vied for membership of Oyo State House of Assembly and you later abandoned politics. Why are you eyeing the NBA President position now?

    After the military left in 1999, we discovered that the civil society groups that spearheaded the struggle abandoned the terrain for all sorts of charlatans and the implication of that is this state of quagmire which we found ourselves. Today, we are facing multi-various problems within the legal system; prominent among the challenges is the quality of lawyers that are joining the profession today. Of course, the standard of legal practice has to do with education. Our education system has collapsed because I have seen a Master Degree holder who claimed to be a lawyer but could not construct a simple sentence, a lawyer that cannot even prepare a motion. I believe such person could be found in journalism profession too and other sectors. The last call to the bar is over 5,000 lawyers and as at today, we still have about 110,000 lawyers to about 168 million people. It is not the question of having too many good lawyers; we are facing gross unemployment of lawyers. On my Blackberry for instance, I have over 100 applications by young lawyers looking for job. How these boys and girls got my number I don’t know, but they claimed they cannot get those of us who have established ourselves in the profession so easily. There are some among these young lawyers, after five years of being called to the bar, they don’t have work to do. It is as serious as that and I intend to tackle that if I become the NBA president. I’ve been to different international fora in Canada, Singapore, USA, South Africa and some other country and I discovered that something is missing about law profession in our country. Sometimes last April, I was in South Africa, and we learnt that a Law Chamber earned the sum of $5.8 million in a legal year. We discovered that the earnings of all law chambers in Nigeria put together is not up to that. In fact, in South Africa, we discovered that their former president, W. D. Clark still runs a law chamber in Cape Town. I was there; I saw things with my eyes. In South Africa, you can see a chamber having as many as 500 lawyers; some are having more than this number. But, we in Nigeria are yet to key-in into what is going on in developed environment. We have been acquiring experience year in year out. The rules guiding law practice in those developed countries ensure there is enough for everybody. We can solve the gross unemployment problem in this sector if proper rules are put in place. So, I intend to combat unemployment among lawyers if I become the NBA president.

    Apart from issue of unemployment among lawyers as you’ve stated, what other challenges confront practice of the profession?

    Like I said earlier, our educational system is in shambles. It is garbage in, garbage out. While we are in school in those days, we made it a point of duty to read newspapers everyday and we gained a lot from columnists like Sad Sam, Comrade Oyebola and others like that. In those days, the columnists set agenda for the country. Today, the reverse is the case even with journalism profession. The standard has fallen that we no longer recommend any newspaper to any group of students. What we are getting now is appalling and it is not limited to legal profession. We can change that for the better because there is no reason why experienced lawyers, particularly the SANs cannot teach at the Faculty of Law of our universities. That is the practice all over the world but here in Nigeria, we lay much emphasis on certificate and not on what you know. We need to tap the resources because we have them in abundance.

    What are your plans for NBA?

    I want to restrain myself from talking on what I wish to do if I become the NBA president. Mind you, I have to be careful and not let out my cat from the bag. What I can tell you for now is that my manifesto is ready. I have five-point agenda that I strongly believe that they are capable of solving virtually all the challenges confronting law practice in this country. I intend to fight corruption. I commend the current leadership of the judiciary because in the last one year, they have done a lot in that regard. They have done self-cleansing within the legal profession. If other arms of government can take a cue, issue of corruption will be drastically reduced in this country. The issue of corruption in the legal profession is being over-dramatised by the media. In fact, it appears some electronic media don’t have any other thing to report beyond corruption in the judiciary. They don’t even know that nine out of every ten allegations made cannot be verified. That is why those of us who are courtroom lawyers stay away from television stations to do any analysis on any issue. What kind of lawyer will have time to go to television studio in the morning between Monday and Friday to do analysis on issues? We referred to this type of lawyers as ‘Television Lawyer’ who cannot move any motion in their life but are fond of staying at television studio only to castigate a judge or lawyer on an issue they knew nothing about. We cannot find their name in any Law Report and these are lawyers that the media celebrate most. Each time NBA tries to sanction them, they will hide under freedom of speech. They are one of the greatest challenges the law profession is facing here in Nigeria.

    Why do you think you’re the best for the job from Southwest zone?

    Ninety-nine percent of my colleagues are courtroom lawyers, and I am a courtroom lawyer too.  I’ve taken part in NBA activities for years; I’ve been in the profession as a virile lawyer for decades. I know much about NBA and its politics and I run four chambers located in Lagos, Ibadan, Port-Harcourt and Abuja, the Federal Capital. I’ve been operating in Abuja since 2001 and I’ve assisted so many lawyers to move forward in the profession. I’ve travelled far and wide and got exposed to professionalism in law practice.  Let me tell you, the best of lawyers around are not Bar activists.  People don’t even know or hear about those lawyers that are making cool money from the profession and they have been living flamboyant life. Their philosophy is, see no evil, say no evil and hear no evil. They have a choice but I am not out for that. I’ve been an activist all my life and I have a choice too; to keep watching and allow things to go from bad to worse, but I’ve involved in struggle for long. I cannot fold my arms and watch things get worse beyond this level. Under my leadership, if I become NBA president, with the support of my colleagues, I will make change happen. NBA is going to experience positive change, mark my word. I can assure you on that. There is going to be revolution in Nigeria’s legal profession.

    Are you prepared for the financial expenses to go round the country and solicit lawyer’s support for your contest?

    Well, I won’t tell you it is not costly to run any election if I must be frank. It’s not going to be a tea party. Even touring the 104 branches across the country to contest for NBA president position is much more strenuous than contesting for position of a governor of a state because the entire 104 branches are your constituency. And each time one is going, he needs to go with some people. So the cost of accommodation and logistics are there to take care. To answer your question straight, it is expensive to contest but I’ll rely on goodwill of my colleagues.

    Some of your predecessors have lofty ideas like you before coming on board, but because of interference from within and outside, their hands are tied. What are you going to do differently to ensure your hands are not tied while in office?

    It is because they allow their hands to be tied. Let me say this; it all depends on individual concern. Look, at where I am now, look at where I am coming from, go and read about me. I’ve not been known to be one that will compromise. The NBA president position is not for profit making and our existence is not tied to any government subvention.  Some people might have taken or are ready to take government briefs; I am not against anybody doing that. Every lawyer has his or her own client. As a matter of fact, it’s unethical not to take brief if some conditions are met. Even, a lawyer should not deny an armed robber his service no matter how bad the situation may be. It’s justice according to the law not according to morality. That is why people don’t understand lawyers when they render service to certain group of people. To that extent, every lawyer is free to take brief from whosoever needs his or her service. A lawyer is like a taxi driver; whoever flags him down and can pay his fare would be taken to his destination.

    Still on interference, at NBA, there has not been a leader without lofty ideas but   the implementation of these ideas has always been their challenge. How would you go about seeing your ideas implemented without hindrances?

    I can assure you that there will be change this time around. I am not the type that runs away from challenge. I am a professional; I am not in a competition with anybody. I don’t want to be Aliko Dangote or Femi Otedola. All I aspire to be is Afe Babalolas of this world and his likes. That is my ambition. I am a professional and I like to work within that confine as a professional. I found myself comfortable being in the midst and work for the people being oppressed. That is why I am being called opposition lawyer by some people because I’ve defended people like Chief Rasheed Ladoja, Adams Oshiomole and so many people like that. These are people who are not moneybags. The struggle has always been part of my life. For years, I was a counsel to the Nigeria Labour Congress (NLC) and Nigeria Union of Teachers (NUT). It has been like that.

    Do you have a specific progr-amme in terms of mentoring the younger ones in the profession?

    Of course yes! I have five-point agenda that I will pursue vigorously if I become NBA president. The mentoring of the up-coming lawyers occupies number three on my agenda. Mentoring of the younger lawyers is lacking by now. I got trained in Ibadan where I was carefully mentored by my seniors. I was trained to be humble in everything. For instance, before I bought my first car, a Beetle, I have to seek approval of my senior in the chamber. Even, after I purchased it, I have to take it back to him for prayers and graduated from that to Peugeot 504, to Peugeot 505, to Mercedes Benz. Our growth during our time is gradual. I trained purely on litigation, my foray into maritime, oil and gas takes almost nine years. In everything we do during our time, we’re modest. The younger ones in the profession do not want to do all what we did in the beginning.  If you investigate the number of lawyers being tried by the disciplinary committee of NBA, they fall in the category of the young lawyers. Some of them embezzled people’s money; some called themselves property consultants. These are not part of the profession because we didn’t meet it that way. When I started, I worked for three consecutive months without receiving salary. Today, the younger ones are not ready to do that. They only care to live big.

    What do you think can be done to resolve the thorny issue of prison congestion?

    If you look at prosecution system in Nigeria and our criminal justice system, you will see that the bane of our criminal system is at the level of poor prosecution, even in EFCC. That is the immediate and remote cause of prison congestion. Part of my own programme to solve the issue of prison congestion is to ensure that only lawyers prosecute people in all the courts across the country; not the police. When you look at the preparation and the proof of evidence by the prosecution, you will be wondering whether the people handling the prosecution are serious. With the collaboration of my colleagues, the IG and other stakeholders, I am going to sell that idea. Once we are able to amend the law in that regard with the collaboration of the National Assembly, it is like killing three birds with just one stone. We will have tackled the issue of prison congestion, human rights abuses and unemployment/underemployment among lawyers.

     

  • Lobi decamp five players

    Lobi decamp five players

    • Add two from Jos tour

    Lobi Stars have decamped five of their players currently training with the team and have added two which they spotted from their tour of Jos last week.

    The Makurdi Bombers played two games against Plateau United and Mighty Jets on Saturday and Sunday last week and they lost one(1-3) and won the other (1-0) in ties they played at the Rwang Pam Stadium.

    Lobi’s head coach, Evans Ogenyi told SportingLife that they had to allow those that failed to measure up to go after over two weeks of rigorous training exercises to give room for those that would fit into the tactics of the team with barely a month to the commencement of the 2013/2014 league season.

    Ogenyi said he was happy that they were able to fish out two new players they hope to see how good they are during training sessions as they wind up their preparation for the start of the premier league season.

    He also confided in SportingLife that the club have perfected steps to sign quality experienced players to ward off what happened to the team last season in which they struggled due to an inexperienced squad at some stages of the season before surviving the drop. Lobi eventually ended the season in 14th spot with 52 points from 38 matches just two points away from the relegation zone.

    The club got to the semi-final of the 2013 Federation Cup before their loss to Enyimba at the Samuel Ogbemudia Stadium, Benin City. They had played in the final a year earlier in the same competition but were stopped due to a stoppage time goal by Heartland of Owerri.

     

  • Youths protest neglect, unemployment

    Youths in Isoko community, Delta State, under the auspices of the Isoko Progressive Youth Centre, have stormed the zonal headquarters of the Nigeria Petroleum Development Company (NPDC), Benin City, Edo State, protesting against what they called the company’s neglect of Isoko indigenes.

    The youths, who stormed the company premises with over 40 buses, chanted songs and carried placards with inscriptions, such as: “We demand to be the sole heads of security jobs in the operational fields in Isoko land”, “Employ Isoko indigenes as workers”, “We demand justice before peace”, among others.

     

  • ‘Granting farmers loans’ll reduce poverty, unemployment’

    The ‘Egbe Agbe Onigari, Akinle-Ijebu’ has called on the Federal and state governments to reduce poverty and the high rate of unemployment in the country by assisting cassava farmers with soft loans.

    The group said cassava is now a “golden crop,” adding that promoting agriculture could solve the challenge of hunger, poverty, increased social vices and unemployment ravaging the country.

    Speaking at the bi-Annual General Meeting of the association in Ago-Iwoye, Ogun State, its Chairman, Chief Baderin Parakoyi, said a critical analysis of the economic situation of the country revealed the need for diversification from oil to agriculture.

    The meeting, which has as theme: ‘Way out of the food and unemployment crises in Nigeria,’ was addressed by the Chairman of the Adenle Farms, Alhaji Wasiu Adenle.

    The major reason the government relied on oil money, the University of Lagos graduate turned cassava farmer, said, was the criminal neglect of the agric sector by successive administrations.

    “Cassava is now a ‘golden crop’ across the world, where over 2,000 different products can be extracted. Nigeria is currently the largest producer of cassava in the world with annual production of over 34 million metric tonnes. Yet, there is glut in cassava production in the country mainly because of the absence of adequate processing of the crop into many products,” he said.

    Assisting the farmers, he said, would encourage them to cultivate more, hence there will be increased farm activities, while hunger, poverty and unemployment would be reduced.

    However, Adenle identified paucity of funds and implements as the major problems confronting the farmers.

    He said they were interested in supplying several tonnes of cassava to many of the agro-allied industries in the country, such as Dangote Group, Flour Mills of Nigeria Limited and Okin Biscuits, which they could not do because of insufficient funds.

    At the meeting, the association released a 12-point communiqué on the way forward to boost food production in the country.

    These are: There is an urgent need for inter-agency interaction for expedited information flows, facilitated and desirable synergies; private sector and other stakeholders should build co-operative linkages with farmers to catalyse a paradigm shift built on greater productivity; entrepreneurship and technology infusion into the nation’s farms; government should streamline taxes to encourage agric enterprises through incentives; and the government, in partnership with the private sector should also provide adequate training for farmers to ensure international best practice.

    Others were that CBOS, NGOs and co-operative societies should be used to mobilise and direct agriculture since they are based at the grassroots; government should lease out storage facilities like silos, scattered over the country to farmers on group basis; government should create a fund to finance long gestation agricultural projects and managed through private sector involvement; both the federal, state and local governments must increase budgetary allocation to agriculture by at least 10 per cent initially and 20 per cent subsequently; agricultural loans must be kept at single dignity through strengthening agricultural credit guarantee schemes including incorporating appropriate incentives; priority attention must be given to the provision and rehabilitation of basic infrastructure most especially water, road and power to promote agricultural growth; and that federal, state and local governments must explore investment opportunities in agriculture; and that only politicians with good agricultural policies should be elected.

     

  • ‘Counselling a panacea to unemployment’

    Against the backdrop of growing unemployment rate, government and various bodies have made efforts to solve the riddle without results. The Counselling Association of Nigeria (CASSON), Edo State chapter, believes support programmes and result-oriented counseling of youths could help in reducing unemployment in the country.

    This was the discourse at an event held by the organisation in St. Albert Catholic Church in University of Benin (UNIBEN) with the theme: Counselling: A panacea for youth unemployment in Nigeria.

    In his remark, Vice Chancellor, Prof Osayuki Oshodin, who was represented by the Dean of Students’ Affairs (DSA), Prof V. E. Omozuwa, described the conference as timely. He congratulated the counselors for waking up to their responsibility of fighting unemployment through mentorship campaigns.

    “Our youth are in dire need of counsellors to enable them live a balanced life,” he stated.

    The Chairman of the occasion, Dr S. A. Taw-Aye, from Benue State University (BSU) in Makurdi said unemployment could be effectively tackled if youths were properly advised before choosing careers.

    He said: “This conference will serve as a litmus test for the 2014 International Counselling Conference to be hosted by UNIBEN.”

    In his lecture titled: “Youth and unemployment in Nigeria” Prof Ngozi Osarenre, a former Commissioner for Education in Edo State, said counselling was important for every youth. She suggested compulsory counseling in schools, organisation of career seminars, provision of adequate career information and proper subject combination as ways of getting youth to choose the right career to avoid unemployment in the future.

    Prof Richard Okorodudu of the Delta State University, Abraka who spoke on Counseling: A panacea for youth unemployment in Nigeria, said that proper career counseling would make youth to develop the right career and be self confident. He added that counseling and vocational education could be used to help youth to build great careers.

    Other issues deliberated on included family counselling for a healthy society, unemployment and stress management, reducing unemployment through effective counseling in schools and youth empowerment and development.

    Highlights of the event included the presentation of awards to people helping the cause of the association, including Prof Oshodin, Prof Osarenren and Prof Okorodudu among others.

    Speaking to CAMPUSLIFE, Prof Kola Adeyemi from the Faculty of Education, UNIBEN, decried the poor attitude of counsellors to their profession.

    “It is sad that today, most counsellors prefer teaching or administrative jobs to their calling and in the process, denying the youth the benefits of proper counseling,” he stated.

    Raymond Osayande, NDI Science Laboratory Technology student of the Federal Polytechnic, Auchi (AUCHI POLY) commended the organisers of the programme. He urged the National Assembly to pass a bill for making counseling an attractive career in the country.

    The ceremony was attended by Provost of UNIBEN Medical School, Prof Vincent Iyawe; President of Edo State chapter of CASSON, Prof E .O. Ebochukwu and Prof Austin Ejugbo from Ambrose Alli University, Ekpoma (AAU).

     

  • Euro zone unemployment stuck at record high

    Euro zone unemployment stuck at record high

    UNEMPLOYMENT in the euro zone was 12.2 percent in September, stubbornly stuck at a record high, signalling that the region’s faltering economic recovery is yet to be felt in the job market.

    The figure is unchanged from the previous month, according to revised data from European statistics agency, Eurostat. The number of people unemployed in the region increased by 60,000 in September to a total of 19.4 million.

    By contrast, in September 2012 the jobless rate was 11.6 percent and 12.1 percent in July 2013 — highlighting fears that the region’s employment picture is deteriorating and could thwart a nascent economic recovery.

    As the 17-country euro zone struggled to control its three-year crisis over too much debt, governments cut back on spending and introduced tax hikes. This had a damping effect on the region’s economy, with a knock-on effect on job numbers. Although the region’s economy is now starting to grow, it expanded by 0.3 percent in the second quarter, companies are still reluctant to hire.

    The euro zone’s lowest unemployment rates in September were recorded in Austria, 4.9 percent; Germany, 5.2 percent; and Luxembourg, 5.9 percent. The highest rates can be found in Greece (27.6 percent in July – the latest figures available) and Spain (26.6 percent).

    Unemployment among Europe’s under-25s, continues to worsen, with 24.1 percent out of work in September compared with 23.7 percent in August. That means that 3.548 million young people were unemployed in the euro zone in September, an increase of 8,000 from August.

    Struggling southern European countries remain worse hit, and the latest numbers show that over half of young people in Spain, Croatia and Greece are still unemployed. In contrast, the lowest youth jobless rate is currently in Germany, at 7.7 percent, and Austria with 8.7 percent.

  • ‘Youths involvement in agric’ll check unemployment’

    The engagement of youths in agriculture will reduce unemployment, an Agri-business Consultant, Michael Oladimeji, has said

    He said in Ikole, Ekiti State, that the introduction of entrepreneurship- related courses in tertiary institutions would make 50 per cent of the nation’s youth to become self employed.

    He said the three tiers of government needed to provide necessary incentives that would encourage youths to engage in mechanised farming.

    “Prompt and adequate funding of the agricultural sector in addition to full implementation of annual budgetary allocation under close supervision will pave the way for success in the sector,” he said.

    He suggested that tertiary institutions should have a Department of Entrepreneurship and Skills Acquisition where candidates could be trained.

    “Graduates produced from the department will surely be self-reliant and employ others when established.

    “A special trust fund can be opened for fresh graduates with entrepreneurship certificates to establish businesses,’’ he said.

    The consultant lamented the high rate of youth unemployment and called on youths not to take it as an excuse.

    “Youths should take it as a challenge and engage in meaningful ventures that will improve their living standard,’’ he said.

  • Ihedioha to reduce unemployment

    Ihedioha to reduce unemployment

    Deputy Speaker House of Representatives, Chief Emeka Ihedioha, has restated his determination to reduce youth unemployment in not only his constituency, but also in Imo State and beyond.

    He spoke during the closing ceremony of a skill acquisition training in cosmetics production, which he facilitated in Owerri, in collaboration with the Projects Development Institute (PRODA), Enugu.

    The deputy speaker said he had put in place measures to ensure that engineering graduates got professional training at the Scientific Equipment Development Institute (SEDI), Enugu to bridge the gap of inadequate practical learning in universities.

    Ihedioha, who had organised empowerment programmes for the youth, said steps were being taken to pursue the empowerment of women and youths to stimulate and consolidate the entrepreneurship of the people for wealth creation and economic development.

    The lawmaker, represented by his Special Adviser (Legislative Matters), Chief Jonas Okeke, a former deputy speaker of the Imo State House of Assembly, said over 100 youths were undergoing a six-month training in five fields at the National Metallurgical Training Institute, Onitsha.

     

  • ‘Rising unemployment affecting insurance growth’

    Over the years, the insurance industry has been bedevilled with a myriad of problems that have hindered its growth. Omobola Tolu-Kusimo reports that rising unemployment continues to pose challenge to the industry.

    When he spoke recently about the unemployment situation in the country, everybody listened to him.

    The Team Leader, World Bank, and representative of World Bank Country representative, Prof Foluso Okunmadewa, said unemployment rate in Nigeria now stands at 22 per cent. Of this figure, youth unemployment accounts for 38 per cent.

    He urged the Federal Government to solve the problem, saying that the youth holds the key to growing the economy.

    The World Bank chief warned that achieving the set goals of Vision 20:2020 may remain a wishful thinking if youth unemployment is not checked, adding that 15 to 35-year olds account for close to 60 per cent of the country’s population.

    For the insurance industry that has been struggling to survive, this is not good news as people who are not employed cannot contemplate buying any insurance product.

    Regulator of the risk-bearing industry, the National Insurance Commission (NAICOM) said the fortunes of the industry and that of the economy will witness a boost if majority of the citizens take one form of insurance cover or the other.

    According to figures from the regulator, only 800,000 adults have insurance policies.

    NAICOM Commissioner, Fola Daniel believes the level of insurance penetration must be increased significantly such that majority of the people would have one form of insurance cover or the other for the nation’s economy to grow as expected.

    He said based on studies carried out by NAICOM, the country will attain rapid and sustained economic growth if the insurance sector’s penetration is deepened.

    But experts in the industry have said the penetration of insurance in the country is essentially tied to availability of disposable income.

    Former President of the Chartered Insurance Institute of Nigeria (CIIN), Mr. WoleAdetimehin said the state of the economy does not encourage people to buy insurance policies.

    He said going by the record of the World Bank, it is time the government began to pay more attention to its policies and projects on creating jobs in the country.

    He said: “If the records to the World Bank are true, the government of the day needs to look at ways to reduce the rating.

    “For any economy to grow, there is the need for an enabling environment. We have to reduce the rate of unemployment. When people can get jobs, insurance will sell at micro level because this will stimulate the demand for products and services in general terms.

    “These are factors that will impact on the industry. If we go by the transformation agenda of the administration of NAICOM, there should to be growth but it still need to be worked upon. NAICOM is doing a lot to grow the fortunes of the industry so it can contribute significantly to the nation’s GDP. It has embarked on sensitising the operators to embrace micro insurance. But a lot needs to be done in terms of revamping the economy.”

    Speaking about the current state of the insurance industry, Deputy Governor, Central Bank of Nigeria (CBN), Mr. Tunde Lemo said one major challenge confronting the sector is its very low level of penetration and patronage.

    According to the CBN chief, non-life insurance penetration stood around one-half per cent or only one-seventh of the average penetration of the Organisation for Economic Co-operation and Development (OECD) countries in 2010 while life insurance penetration is even lower at around 0.2 per cent.

    Lemo said: “The comparison remains the same when a better measurement of insurance utilisation is used, which takes into consideration dependence on the economic development of the country as well as the benchmark insurance penetration against the world insurance penetration average (BMIP) for the non-life sector.

    “The Nigerian BMIP value indicates that the insurance industry is underdeveloped with only 43 per cent of the world average insurance penetration at the Nigerian 2010 GDP per capital level, placing Nigeria at the bottom of comparable countries, such as Angola, Ghana, Kenya, Morocco and South Africa, with the exception of Egypt.”