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Without Justice, No Future for Nigeria, says Rescue Nigeria Forum

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A “People’s Discussion” organised by the Initiative for Good and Informed Citizenship, better known as Rescue Nigeria, has given a verdict that the Nigerian state as currently constituted offers no hope for a better future for the people.

Panelists and participants at an online discussion forum, held on Sunday, under the topic “Nigeria: Break Up or Not,” agreed that Nigeria has the potential to be great as one nation, but not as it is currently constituted.

They were mostly of the opinion that changes were required to keep the constituent parts together. They added that justice, fairness, a new mindset among Nigerians, good leadership and a new constitution were necessary to the rebuilding process.

The panelists at the discussion included Dele Farotimi, lawyer and seasoned political activist; Dike Chukwumerije, performance poetry artist and award-winning author; and Morin Carew, leadership coach and charity consultants.

Others panelists at the discussion, moderated by Anike-Ade Funke Treasure, a renowned broadcaster and journalist, were Dr. Bukky Bello Jaiyesimi, an entrepreneur and multiple awards recipient; Bamijoko Okupe, a communications expert; and Kellas Agbasi, a pastor and advertising practitioner.

Farotimi reiterated his view that the current Nigerian constitution is a fraudulent document, which emanated from ‘military bandits’, and has constrained the will of the people rather than encapsulate it.

Said Farotimi: “If you are now changing the persons who sit in the different offices created pursuant to that fraudulent document, all that you would be doing is reinforcing the lie.”

According to him, “The foundation upon which the Nigerian state is currently found is a lie. That foundation in itself cannot sustain anything, that is why we are having the multiple problems we have across the length and breadth of Nigeria.

“So, if Nigeria must proceed into a better future, we must be truthful enough to tell ourselves that the system is simply not working. It is not about voting (in) angels. You can bring any angel, bring anyone. As long as the system is not dealt with, it collapses.”

The lawyer activist also said: “If you have created a system that demands that a man should swim through a sewer line before emerging at the other end, you have already assured that he is going to come out dirty.

“So, the process is already tainted in a manner that it is only the worst of us that would ever emerge. And when they emerge, the only thing they ever seek to do is to maintain the system. The system is designed to preserve itself. It is not designed to serve the Nigerian.

“That is why Nigerians are disconnected from the process. That is why they are demanding ‘I want to go’. You can’t fuse people together, if justice is not in the mix. If one part feels they are less than the next. And that they would not be treated the same as their next man.”

Making his own contribution, Dike Chukwumerije was emphatic that Nigeria should stay together.

He said: “The principles around which Nigeria would flourish have been laid out by our founding fathers. The Principle of Federalism embodied by Chief Obafemi Awolowo; the Principle of Inclusion, of carrying everybody along, embodied by Sardauna Ahmadu Bello; and the Principle of Minimum Common Standards, embodied by Dr. Nnamdi Azikiwe.

“So, the blueprint is there. We just need to execute. Nigeria is better together.”

Arguing that Nigeria is not the first nation in the world to be artificially created, Chukwumerije said “the historical circumstances of our birth and the systems and structures that we have, are not the reasons why we cannot become great.

“Our greatness lies in our potential. We are a country that has all the potentials for greatness. And as it is always the case in any country in the world, the missing link is always ‘leadership’.

“Leadership is not just political, but also social. It is also cultural. It is also on the economic sphere. In every sphere. What always makes the difference is leadership.

“And leadership is the ability to see the potential in what you have. It is not constantly looking at others and saying ‘Look at what they have’. Leadership is the ability to see the potential in what you have. And to conceive a vision that allows you to use your own strengths to get to that future.

“And this is not an activity that is restricted to only the politicians. In fact, the task of nation building is not primarily that of the politician. It is that of citizens. That of ordinary people like us.

“And I believe that one of the key things in Nigeria is that we are all constantly driving and looking in the rearview mirror. We are constantly trying to use today to correct the mistakes of yesterday.

For us to get to where we need to be, we need to leave the past alone and look forward. We need to look at our nation dispassionately, at its strengths and build strategies that harness those strengths. rather than all the time obsessing over our weaknesses, obsessing over our shortcomings. Because everybody has weaknesses and shortcomings.”

In her contribution, Morin Carew too said she doesn’t want Nigeria to break up, but that every Nigerian needs to resolve to change for the better.

Carew also noted that the thinking by individual Nigerians that when someone known to them gets into government, they can benefit has become an endemic problem, adding that “if everyone of us think that for me to make it in Nigeria is based not on my merit but on nepotism, we would never get there”.

She remarked that “Nigeria belongs to everyone of us, and it is high time we stop playing the ethnicity card, and begin to take personal responsibility for the things that are happening in Nigeria.”

On his part, Bamijoko Okupe reminded Nigerians that breakup of a nation is complicated.

“Break up is not as simple as taking a bottle and smashing it on the ground.

“Fortunately or unfortunately, we have been together for over 60 years. When people have lived together for that long, they would have become intricately woven together in many many directions. Fusion of tribes, fusion of interests, fusion of relationships, etc.

“Some of us have very very close friends that are not from our ethnic tribes, that we have done good business with. There are companies in Nigeria that are being run by people of different ethnicities, and they are doing so well. So, that tells me that there is a potential in us working together meaningfully.

“With the strength of the diversity that we have, if only we can have a positive mindset to be progress driven, to see that we can actually work together…”

Striking a similar note to Okupe, Dr. Bukky Jaiyesimi said either of the two options, to break up or not, has attendant costs. But added that if we decide not to break up, there should be a plan to restructure.

Pastor Kellas Agbasi noted that the agitations for break up are sympomatic of the directionlessness of the nation and the misbehaviour of the political class.

Nigerians who attended the online event, also referred to as the people’s parliament, were energized about the topic.

Some felt that secessionist leaders such as Nnamdi Kanu and Sunday Igboho have been unfairly treated by the government.

While a few felt it was too late to rebuild Nigeria, the majority believed Nigeria can work if structural changes were made.

Many left with comments that they needed to be more active citizens, politically and socially.

The Rescue Nigeria People’s Discussion will be a monthly event to bring ordinary Nigerians together to discuss matters that are of interest to the people.

Signed:

For: Initiative for Good and Informed Citizenship (Rescue Nigeria)

Biodun Durojaiye and Tunde Odediran

 

 

 

Africa, ME Personal Computing Market Reports 12% Growth in 4thQtr 2021

 

The Middle East and Africa (MEA) personal computing devices (PCD) market, which is made up of desktops, notebooks, workstations, and tablets, posted strong year-on-year growth of 11.5% in the final quarter of 2021, according to the latest industry analysis conducted by International Data Corporation (IDC).

The global technology research and consulting firm’s newly updated Worldwide Quarterly PCD Tracker shows that shipments across the region reached 6.8 million units in Q4 2021.
“This represents the highest quarterly volume of PCD shipments seen in the region for over five years,” says Fouad Charakla, IDC’s Senior Research Manager for client devices in the Middle East, Turkey, and Africa .

“PC shipments alone, excluding tablets, were at the highest volumes seen in more than seven years. Most of the market’s leading vendors were able to secure much higher levels of notebook shipments from manufacturers than previous quarters, primarily towards the second half of December. This was highly unexpected and led to a significantly better than expected performance of the market.
“PC demand remained strong, as shipments experienced outstanding year-on-year growth from both the commercial and consumer segments, while tablet shipments experienced a slowdown in both segments. Large education deals were delivered in Egypt, South Africa, Kuwait, Ghana, and the UAE, which helped contribute to the growth of overall commercial PCD demand in Q4 2021.”
In the PC segment, Lenovo climbed to first place once again. HP ranked second, while Dell remained in third position.

Middle East & Africa PC Market Vendor Shares – Q4 2020 vs. Q4 2021
Company
Q4 2020
Q4 2021
Lenovo
24.1%
25.0%
HP Inc.
21.9%
23.7%
Dell Technologies
15.4%
18.5%
Others
38.6%
32.8%


In the tablet space, Samsung maintained top position. Lenovo ranked second, while Apple came in third.

Middle East & Africa Tablet Market Vendor Shares – Q4 2020 vs. Q4 2021
Company
Q4 2020
Q4 2021
Samsung
30.7%
31.0%
Lenovo
17.4%
15.5%
Apple
10.0%
13.0%
Others
41.8%
40.5%

 

 

Good day Doc!

 

I wish to thank you immensely for past support in our effort to build Business Journal into a major

media brand in Nigeria.

 

Pls sir, our TARGET in 2022 is to transform the monthly Business Journal magazine (print) into a

weekly business/financial newspaper.

 

According sir, we have the pleasure to respectfully nominate you into the Board of Editorial Advisers

and also as a Columnist at your convenient time/when your time permits.

 

There is NO financial obligation on your part as a member of the Board of Editorial Advisers. The Board is essentially an advisory

body of eminent persons drawn from various sectors of the economy.

 

Sir, we look forward to your positive response.

 

Thanks and God bless.

 

Prince Cookey

Business Journal

08023088874

[email protected]

 

 

 

 

Guinea Insurance Unveils Motor Insurance Self-Service Portal

 

Ademola Abidogun

Managing Director

Guinea Insurance Plc

 

Guinea Insurance, a foremost risk management solution provider in Nigeria, recently launched a revolutionary self-service motor insurance e-portal that allows customers to purchase motor insurance products in less than two minutes.

The Managing Director, Guinea Insurance, Ademola Abidogun, said that the motor insurance portal was launched to provide the insuring public with unlimited access to make real-time purchases from anywhere and whenever they needed to.

Speaking recently during the launch in Lagos, Ademola said the portal would give customers the freedom to buy authentic and reliable motor insurance policies without any geographical barrier; insofar as the vehicle is within the Nigerian land borders.

Ademola said: “as it stands today, consumer behaviour is undeniably shifting and favouring effortlessness more than before, whether by simply engaging with a business quickly and conveniently or by easily accessing the most relevant information to meet their individual needs. Our customers nationwide would be able to choose and make informed decisions to purchase motor insurance products that best suit their insurance needs”.

Our digital transformation is driven with these key concepts in mind. By updating and improving upon the portal, we aim to provide policyholders with all the information and tools they need to self-serve at any time, creating a seamless experience and better meeting their needs, he said.

The Group Lead, ICT, Damilare Bakare opined that innovation was fundamental to any insurance company during this era of fast-growing technology. In his words: “the portal presents a platform for online real-time purchases by the insuring public, and it is integrated with Paystack Company – one of the best and leading payment gateways in Nigeria and Africa.

The insurance agent module on the portal helps to streamline new business submissions and provide them with access to policy information in a self-service manner”.

Therefore, upon the verification of payment for the policy with the use of credit or debit cards, a motor certificate would be generated, downloaded, and emailed to the customer instantly. The portal could be used by brokers and agents who are registered with Guinea Insurance PLC and visitors to the Guinea Insurance website, could get to the motor insurance portal via the “Buy Motor Insurance” button on the site, he further added.

On top of that, the company said it was determined to increase the portal usability and performance to further empower drivers and future-proof the brand in its strategic plan of providing exclusive access to a personalised online portal.

Customers would be able to revel in the good fortunes of low premium rates, convenient and time-saving process, great customer experiences, instant receipt of motor certificates, payment integration that assures security and ease of payment, integration to NIID portal for verification of genuine motor insurance, and free tracking on comprehensive motor insurance depending on the value of the car.

Africa, ME Personal Computing Market Reports 12% Growth in 4thQtr 2021

0

 

 

The Middle East and Africa (MEA) personal computing devices (PCD) market, which is made up of desktops, notebooks, workstations, and tablets, posted strong year-on-year growth of 11.5% in the final quarter of 2021, according to the latest industry analysis conducted by International Data Corporation (IDC).

The global technology research and consulting firm’s newly updated Worldwide Quarterly PCD Tracker shows that shipments across the region reached 6.8 million units in Q4 2021.
“This represents the highest quarterly volume of PCD shipments seen in the region for over five years,” says Fouad Charakla, IDC’s Senior Research Manager for client devices in the Middle East, Turkey, and Africa .

“PC shipments alone, excluding tablets, were at the highest volumes seen in more than seven years. Most of the market’s leading vendors were able to secure much higher levels of notebook shipments from manufacturers than previous quarters, primarily towards the second half of December. This was highly unexpected and led to a significantly better than expected performance of the market.
“PC demand remained strong, as shipments experienced outstanding year-on-year growth from both the commercial and consumer segments, while tablet shipments experienced a slowdown in both segments. Large education deals were delivered in Egypt, South Africa, Kuwait, Ghana, and the UAE, which helped contribute to the growth of overall commercial PCD demand in Q4 2021.”
In the PC segment, Lenovo climbed to first place once again. HP ranked second, while Dell remained in third position.

Middle East & Africa PC Market Vendor Shares – Q4 2020 vs. Q4 2021
Company Q4 2020 Q4 2021
Lenovo 24.1% 25.0%
HP Inc. 21.9% 23.7%
Dell Technologies 15.4% 18.5%
Others 38.6% 32.8%

In the tablet space, Samsung maintained top position. Lenovo ranked second, while Apple came in third.

Middle East & Africa Tablet Market Vendor Shares – Q4 2020 vs. Q4 2021
Company Q4 2020 Q4 2021
Samsung 30.7% 31.0%
Lenovo 17.4% 15.5%
Apple 10.0% 13.0%
Others 41.8% 40.5%

 

Stanbic IBTC to Connect with Youths at Africa NXT

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As part of its commitment to youth development, Stanbic IBTC Holdings Plc, a member of Standard Bank, has concluded plans to sponsor Africa NXT, formerly known as Social Media Week.

In recent years, experts and youths in the business, creative and tech spaces across Africa and the diaspora had convened to hold discussions on various topics related to youth development at the week-long annual event.

This year, the event is slated to take place from 27 February to 04 March 2022. The 2022 edition of the event is themed “The Next 10 Years: Reimagining Our Collective Commitment to Africa’s Prosperity”, with a particular focus on collaboration to achieve progress in tech and business for Africa’s prosperity.

As an institution leaning towards the use of technological innovation in the financial space and an official sponsor of the Africa NXT event, Stanbic IBTC will hold a panel discussion and masterclass session to speak to topics on digital insurance, investments, and business finance.

The financial institution will introduce its newly launched Artificial Intelligence robotics, Stanbic IBTC Pepper, a fully programmed robotic companion that engenders quality human interaction in banking experiences for clients and customers during the event.

Speaking about the event, Wole Adeniyi, Chief Executive, Stanbic IBTC Bank, said the event would serve as an opportunity to connect with the youth.

He said: “Stanbic IBTC is passionate about youth development and innovation. Africa NXT is a platform that connects us all, gives us the opportunity to converse and let them know that Stanbic IBTC is always ready to help push their dreams.”

Wole said the robot, Pepper, will be on ground for people to have a first-hand experience of it and have a glimpse of how technology powers Stanbic IBTC’s operations.

“Technology is beautiful. It simplifies complex processes. Pepper is a robot, but it is well equipped to carry out basic transactions. She is a demonstration of Stanbic IBTC’s relentless search for ways to serve our clients and customers through technology.”

Stanbic IBTC remains committed to finding ways to connect with the youth for empowerment as well as providing Nigerians with financial solutions powered by innovative technology.

Flutterwave Re-brands, Looks Beyond Payments

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Flutterwave, the leading technology company, has unveiled a significant re-brand and identity at Flutterwave 3.0, a virtual event held last Friday.

Following the announcement of a $250 million Series D funding recently, Flutterwave is now rolling out its new and reimagined identity, to affirm its commitment to creating endless possibilities for all, through technology, as well as introducing new products and services that take the technology leader beyond payments.

During the Flutterwave 3.0 event, streamed across Youtube, the brand launched a series of products, including;

A Fintech as a Service (FaaS) solution which helps startups of all sizes quickly become Fintech companies using Flutterwave’s pre-built API and solutions.

Capital, a technology platform for businesses & consumers to access Buy Now Pay Later (BNPL) & Merchant lending from regulated and certified credit providers.

Grow, a B2B product that helps entrepreneurs easily incorporate their businesses globally.

Checkout, a new checkout experience that is 5x faster, reducing drop-off by 60%.

Card issuing, technology platform to enable businesses to issue both Mastercard virtual and physical debit/prepaid cards to their customers in partnership with Mastercard. These solutions remain subject to regulatory approval.

Additional improvements to existing products include; a new powerful dashboard, Barter v4, and an AI-powered compliance process. The Flutterwave visual rebrand comes with 6 new primary colours which depict creativity, motivation, passion, ease, robustness and eagerness.

Flutterwave launched in 2016, initially building innovative financial infrastructure to enable payments for banks and institutions, before expanding into checkouts and gateways for businesses of all sizes. Having invested in and built out a suite of products and services targeted at both consumers and businesses, Flutterwave has gone on to serve over 900,000 merchants, process over 200 million transactions worth over $16 billion to date, across 34 countries in Africa, which has led to the company becoming one of Africa’s earliest unicorns in March 2021.

Friday’s event saw Flutterwave affirm its commitment to explore more areas of growth for businesses, startups and individuals. The move comes after a significant diversification of products in 2021, whereby the company announced the acquisition of Disha, a creator platform where creatives can receive money from across the world for their craft. In the same year, Flutterwave went on to introduce Market, an extension of its e-commerce solution, Store to improve visibility and by extension, revenue for small businesses. Alongside global Afrobeats superstar Wizkid, in December Flutterwave launched a remittance solution, Send, to help anyone in the world send and receive money.

“We’re growing and for us, payments have become a means to an end.” Founder and CEO, Olugbenga GB Agboola, said, “Every part of our lives includes some form of transaction. Beyond powering those transactions, we want to also create those transactions. We want to help event organizers seamlessly register and sell out their events, we want to help artists receive money for their craft, we want to help entrepreneurs incorporate their businesses, we want to help startups build financial technology products easily and we want to create endless possibilities for all through technology. Our new identity is a system that recognises how far we’ve come in our mission. It gives us space to include all of our dreams and aspirations for businesses and customers. It gives us the freedom to do and be more. We’re excited for this new chapter in our growth.”

Head of Branding and Storytelling, Yewande Akomolafe-Kalu said, “We always wanted to simplify payments for endless possibilities for our customers. Over time, we’ve come to see that the story of our impact goes well beyond payments. We understand how important it is to embrace the full story of our journey and make it a part of our identity. We’re excited to create endless possibilities through technology.”

VP of Design, Flutterwave, Ted Oladele said, “During our first ever rebrand meeting, we asked ourselves; how much does our brand communicate who we are? We discovered we were confining ourselves to a single story of our brand when we were much bigger than that. This new brand is freedom. It enables us to create solutions that help people, whether payments or not. It recognises our growth and actively asks us to do more.”

This rebrand showcases Flutterwave as a technology company enabling growth and creating endless possibilities for all.

 

Bolt, Fixit45 Collaborate to Improve Access to Autocare Services

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L-R: Femi Akin-Laguda, Country Manager, Bolt and Justus Obaoye, Co-Founder & Chief Executive Officer, Fixit45 at the partnership agreement signing ceremony in Lagos.

Leading ride-hailing platform, Bolt, and pan-african autotech platform, Fixit45 announces partnership to enable ride-hailing drivers’ access autocare, vehicle repair and maintenance services in a bid to reduce mobility disruption and drive income optimization.

Fixit45, has partnered with leading ride-hailing platform, Bolt to provide its community of drivers with access to subscription-based plans that minimise potential mobility disruption and improves their chances of income optimisation.

This is in light of the pivotal role played by the mobility industry in the general, and ride-hailing segment in accelerating economic growth as well as driving shared prosperity, coupled with the need to sustain these mobility efforts, auto tech platform.

This partnership is premised on Bolt’s dedication to redefining urban mobility by helping people move seamlessly and empowering partners to improve their earnings and Fixit45’s avowed commitment to building a seamless autocare & auto-repair, maintenance services, fleet management and so much more.

This subscription-based service plan for drivers on the Bolt platform guarantees unfettered access to quality auto services that include autocare, vehicle repair and maintenance from Fixit45’s service network across the Country. Other benefits include access to repair financing, discounts on spare parts, unlimited diagnosis, periodic car wash and tire services.

CEO and Co-Founder, Fixit45, Justus Obaoye noted that given the enabling power of mobility as a critical success factor in stimulating advancement and development for both urban and rural economies, it is imperative that concerted efforts are made towards mitigating disruptions in that space.

“As a platform that enhances mobility experiences, Fixit45 has collaboration in its DNA. As such, we are excited to partner with a market leader in the ride-hailing space in oiling the wheels of progress. This service plan ensures that drivers’ inactivity often occasioned by vehicle operational downtime is minimized while increased earnings, improved vehicle reliability, and quick service turnaround time are some of the perks that come with this partnership. This partnership with Bolt is poised to keep the lights of the Nigerian economy on,” Obaoye said.

Speaking on the partnership, Femi Akin-Laguda, Country Manager at Bolt, said, “At Bolt, our promise of improving the experience of our drivers has been central to our continued success in Nigeria. Our commitment is reflected in our constant effort to build new avenues that help make our drivers and fleet partners more profitable. This partnership will improve the access of our partners to cost-effective autocare, repair financing and so much more.”

He concluded by saying “We do not select our partners or partnerships frivolously; Working with Fixit45 on this project will help our drivers keep their cars in great conditions and save them a lot of time and money in maintaining their vehicles leading to better experiences for all our customers, be they drivers or passengers.”

“With technology increasingly contributing to the development of mobility, strategic engagements like this will help make life easier and put both firms at the forefront of driving change. We are driven by our overarching purpose which is to facilitate the exchange of goods and services, thereby enabling value creation for all participants and this partnership bolsters our mandate. It is heart-warming to note that we are helping stakeholders see that we are not here to compete but here to facilitate and enable the fix that makes every car owner happy,” Abdulazeez Ogunjobi, co-founder/CTO, Fixit45.

Since it entered the Nigerian market, Bolt has been focused on developing products that offer better and more affordable alternatives in the mobility segment whilst making giant contributions to Nigeria’s socio-economic growth. Fixit45 has been building the infrastructure for a robust automotive aftermarket industry.

 

 

Guinea Insurance Unveils Motor Insurance Self-Service Portal

0

 

 

Ademola Abidogun

Managing Director/CEO

Guinea Insurance Plc

Guinea Insurance, a foremost risk management solution provider in Nigeria, recently launched a revolutionary self-service motor insurance e-portal that allows customers to purchase motor insurance products in less than two minutes.

The Managing Director, Guinea Insurance, Ademola Abidogun, said that the motor insurance portal was launched to provide the insuring public with unlimited access to make real-time purchases from anywhere and whenever they needed to.

Speaking recently during the launch in Lagos, Ademola said the portal would give customers the freedom to buy authentic and reliable motor insurance policies without any geographical barrier; insofar as the vehicle is within the Nigerian land borders.

Ademola said: “as it stands today, consumer behaviour is undeniably shifting and favouring effortlessness more than before, whether by simply engaging with a business quickly and conveniently or by easily accessing the most relevant information to meet their individual needs. Our customers nationwide would be able to choose and make informed decisions to purchase motor insurance products that best suit their insurance needs”.

Our digital transformation is driven with these key concepts in mind. By updating and improving upon the portal, we aim to provide policyholders with all the information and tools they need to self-serve at any time, creating a seamless experience and better meeting their needs, he said.

The Group Lead, ICT, Damilare Bakare opined that innovation was fundamental to any insurance company during this era of fast-growing technology. In his words: “the portal presents a platform for online real-time purchases by the insuring public, and it is integrated with Paystack Company – one of the best and leading payment gateways in Nigeria and Africa.

The insurance agent module on the portal helps to streamline new business submissions and provide them with access to policy information in a self-service manner”.

Therefore, upon the verification of payment for the policy with the use of credit or debit cards, a motor certificate would be generated, downloaded, and emailed to the customer instantly. The portal could be used by brokers and agents who are registered with Guinea Insurance PLC and visitors to the Guinea Insurance website, could get to the motor insurance portal via the “Buy Motor Insurance” button on the site, he further added.

On top of that, the company said it was determined to increase the portal usability and performance to further empower drivers and future-proof the brand in its strategic plan of providing exclusive access to a personalised online portal.

Customers would be able to revel in the good fortunes of low premium rates, convenient and time-saving process, great customer experiences, instant receipt of motor certificates, payment integration that assures security and ease of payment, integration to NIID portal for verification of genuine motor insurance, and free tracking on comprehensive motor insurance depending on the value of the car.

Allianz Report: Nigeria to Register 2.3% Economic Growth in 2022

0

After being the slowest growing region in 2021, Africa will register mild growth in 2022 (+3.5%) as vaccination rates will remain very low (32% in the overall continent but only 4% in Sub-Saharan Africa) according to the Allianz Economic Outlook report: Don’t Look Up.

GDP growth expectations in countries are as follows: Senegal (6.1%), Kenya (5.6%), Ivory Coast (5.5%), Ghana (5.4%), Egypt (4.6%), Mozambique (4.6%), Namibia (3.7%), Morocco (3.3%), Tunisia (3.2%), Gabon (3.2%), Algeria (2.4%), Nigeria (2.3%), Angola (2.2%) and South Africa (2.0%).

In 2022, oil exporters such as Angola and Algeria will continue to benefit from the commodity upcycle tailwind. On the other hand, amid rapidly rising inflation to double digits in most countries, monetary policy rates are expected to increase in Kenya, Nigeria, Ghana, South Africa and Egypt. In an environment of continued sanitary uncertainty, this monetary tightening is expected to put a brake on growth.

In addition to rising energy prices, food inflation has soared to hardly bearable levels in Angola, Ethiopia, Nigeria and Ghana. The food security situation is likely to deteriorate in 2022 in southern and eastern Ethiopia, Kenya and Somalia as a result of adverse climate events. The deteriorating security situation in Ethiopia entails significant risk of spillovers to the region, including migration flows to the Kenyan border. Tunisia, Ghana, Mozambique, Kenya and South Africa are hot spots regarding debt sustainability. Tunisia, Morocco, Egypt and Burkina Faso will see current account deficits only improve slightly in 2022 after deteriorating in 2021.

Global growth should remain robust but uneven, with rising divergence between advanced and emerging market economies. Our 2022 GDP forecast remains broadly unchanged, with the Eurozone and the US expected to grow by +4.1% and +3.9%, respectively, while growth in China slows to +5.2% due to ongoing disruptions in the real estate sector and the government’s focus on financial stability.

China’s lowest contribution to global GDP growth since 2015 is likely to have negative spillover effects on emerging markets whose recovery will be shallower compared to past crises.

Global trade is expanding once again above the long-term average but will be disrupted by labor and supply chain bottlenecks, amplified by omicron. We expect global trade in volume to grow by +5.4% in 2022 and +4.0% in 2023.

Allianz has been operating in Africa since 1912 in the following countries EgyptSouth Africa through Allianz Global Corporate & SpecialtyNigeriaGhana, KenyaIvory CoastMadagascarMoroccoSenegal, Cameroon and Congo.

 

100 Youths Begin NCDMB/ITF Vocational Training Program

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Engineer Simbi Kesiye Wabote

Executive Secretary

Nigerian Content Development and Monitoring Board (NCDMB)

Hundred Nigerian youths have commenced training in the vocational skills programme sponsored by the Nigerian Content Development and Monitoring Board (NCDMB) and facilitated by the Industrial Training Fund (ITF).

The training covers eight skills areas, and they include Information and Communication Technology; Electrical/Electronic Technology; Industrial Automation and Mechatronics; Instrumentation and Process Control; Mechanical Services and Maintenance; Mobile Phone Repairs and Troubleshooting; Residential Air-Conditioning and Refrigeration Maintenance and Building Technology.

The programme would last for six months, and it is the second time the Board is collaborating with the ITF for the training of Nigerian youths. The first edition was concluded in 2021 and 254 youths were trained and equipped with tools and resources that should enable them to start their own enterprises.

The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote spoke at the kick-off ceremony in Abuja on Monday and expressed delight that many participants from the first programme have started their own businesses, and some got formal employment to support the economy. The high level of success motivated the need to carry out the second batch of the training, he said.

Represented by the General Manager, Capacity Building Division, Dr. Ama Ikuru, the Executive Secretary explained that the design of the training is to ensure that beneficiaries end up as successful artisans, entrepreneurs, and employers of labour, which is why emphasis will be placed on entrepreneurship and practical skills.  “With our 60:20:20 training policy, we insist that at least 60 percent of our beneficiaries will have a clear line of sight to gainful employment and or are equipped to start their own businesses,” he added.

The beneficiaries were selected from the Board’s NOGIC-JQS platform, with representation from different zones of the country. Selection exercises were also organised for the trainees, involving tests and oral interviews in Abuja, Lagos and Port Harcourt.

Wabote stated that human capacity development is one of the key mandates of the Board and each year the agency trains over 2000 Nigerians in various skill areas, either through direct intervention or through the project-based training executed by contractors and operating companies.

He revealed that “over 3000 Nigerians benefitted from the Board’s sponsored or facilitated training programmes in 2021, and a higher number is expected in 2022 to cushion the effect of COVID 19 and the challenges being faced in the wider economy.” He added that the objective is that Nigeria will have adequate and competent human capacity to run the economy and achieve a high level of domiciliation and domestication of activities in key industries, including the oil and gas industry.

He confirmed that the Board’s human capacity training programmes have been aligned with the rapid advancement of technologies and the digitalization in the oil and gas industry and the Board will increase the number of training programmes in digital science, analytics, and digital coding.

He listed other areas of the Board’s capacity building interventions to include the renovation and upgrade of some technical and vocational education training schools (TVETS) across the country, with modern industrial equipment and strengthening engineering departments in selected tertiary institutions to ensure that their graduates are trained ready for the challenges of the modern industry.

In his remarks, the Director-General of ITF, Sir Joseph Ari commended NCDMB for its commitment to the empowerment of Nigerians and for collaborating with the institution. He submitted that “this kind of synergy is vital to actualize our respective mandates and effectively address most of the problems confronting the country, especially unemployment and poverty and their effects on national life.”

Represented by the Head, Corporate Planning, Mrs. Yinka Shodunke, the Director-General suggested that Nigerians who are equipped with requisite skills will be better disposed to take advantage of numerous policies designed by the Federal Government to boost the economy and improve the standard of living of the citizens.

Local Content: How Nigeria Lost $380bn, 2m Jobs in 50 Years

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Engineer Simbi Kesiye Wabote

Executive Secretary

Nigerian Content Development & Monitoring Board (NCDMB)

Engineer Simbi Kesiye Wabote, Executive Secretary, Nigerian Content Development & Monitoring Board (NCDMB) says Nigeria lost over $380 billion and two million jobs in a period of 50 years over the issue of local content.

Speaking on ‘Local Content Journey in Nigerian Oil and Gas Industry’ at a breakfast meeting with members of the Guild of Corporate Online Publishers (GOCOP) in Lagos, Wabote said that prior to the adoption of local content, the Nigerian oil and gas industry was characterised by:

  • Revenue focus with little emphasis on in-country value addition;
  • Massive capital flights of over $380 billion and an estimated two (2) million job losses over a 50-year period;
  • The local content in the oil and gas industry was less than 5%.

He said the situation was so severe that former President Olusegun Obasanjo directed the Nigerian National Petroleum Corporation (NNPC) to introduce Local Content Policies in the oil and gas industry as part of the nation’s national economic development imperatives in 2004.

Wabote traced the local content journey thus:

“Following the presidential directive, NNPC issued 16 and 23 directives in 2005 and 2006 respectively to drive local content as a key development imperative. These directives further raised the consciousness in the oil and gas industry and moved the needle a bit in getting some in-country value addition across the oil and gas value chain. Having witnessed initial resistance to the NNPC directives by most of the E & P companies, the government felt it was imperative to give legal backing to the directives and provide an all-encompassing framework for the development of Nigerian Content in the oil and gas industry. Hence, the NOGICD Act was enacted in 2010 and signed into law on 22nd April 2010.”

The NCDMB ES said the NOGICD Act of 2010 established NCDMB as the sole agency of the Federal Government with the responsibility for driving Nigerian Content in the oil and gas industry with the following mandates:

  • Maximize utilization of Nigerian resources, that is, goods, services and assets
  • Maximize participation of Nigerians in the oil and gas activities
  • Attract investments to the Nigeria oil and gas industry; and
  • Link oil and gas sector to other sectors of the economy

Wabote added that the NOGICD Act has been implemented in 3 phases in the past 11 years:

  • Phase 1: 2010 – 2012: Transition from NNPC-NCD to NCDMB; Temporary offices in Yenagoa, Bayelsa State; Pioneer staff recruitment & training; Benchmark studies on LC practices; Created awareness on opportunities in the Act
  • Phase 2: 2013 – 2016: Implementation of CDIs & deployment of compliance monitoring tools- Participated in bids and enforced compliance with NC requirements; Monitored compliance with NC commitments in bids; Applied sanctions on defaulting companies; Achieved 26 percent Nigerian Content as at end 2016
  • Phase 3: 2017 – 2027: Implementation of a 10-Year Strategic Roadmap to achieve 70 percent Nigerian Content in the Oil and Gas Industry.

“The 10-Year Strategic Roadmap in underpinned by five (5) pillars namely – Technical Capability Development, Enabling Business Environment, Organisational Capability, Sectorial & Regional Market Linkages and Compliance & Enforcement. And also four (4) Enablers, namely – Funding, Regulatory Environment, Collaboration & Stakeholder Engagement and Research & Statistics. Using these provisions, and the roll-out of the 10-Year Strategic Roadmap, the following achievements have been recorded in the oil and gas industry with the implementation of the Nigerian Content Act:

  • Increase of in-country value retention from 26 percent in 2016 to 42 percent in 2022.
  • Nigeria moved from near zero participation in the oil and gas sector to the point that our indigenous operators such as SEPLAT, AITEO, EROTON, and others are now responsible for 15% of our oil production and 60 percent of our domestic gas supply.
  • Before the Act, we had annual spend of $20 billion, with little or nothing retained in-country. Today, we now spend more than $8 billion in-country per year.
  • We now have 2 world-class pipe mills and 5 impressive pipe coating yards
  • More than 40 percent of marine vessels used in the oil and gas industry are now owned by Nigerians.
  • In fabrication, today Nigeria can handle fabrication of more than 250,000 Tonnes per annum.
  • Over ten (10) million training manhours have been delivered via our Human Capacity Development Programs. No surprise that our indigenous workforce was able to sustain oil production at the peak of the COVID-19 pandemic lockdown.
  • Over 50,000 direct jobs have been created on the back of the implementation of the NOGICD Act.
  • Completion and commissioning of our 17-storey headquarters building – the Nigerian Content Tower in Yenagoa, complete with a 1,000-seater conference auditorium and multi-level car park.
  • Completion of 10MW power plant for the supply of electricity to the Nigerian Content Tower and the industrial park in Bayelsa State.

 

  • Completion and commissioning of the 5,000 bpd Waltersmith Modular Refinery at Obigwe, Imo State; the refinery is currently in operation with the products completely sold out.
  • Launched the $350 million Nigerian Content Intervention Fund managed by the Bank of Industry and NEXIM Bank for single digit loans for Asset Acquisition, Manufacturing, Loan Refinancing, Working Capital and Loan for Women in Oil and Gas.
  • The only infrastructure in Africa for FPSO integration is available in Nigeria. The Egina FPSO which is the largest in the world was integrated at the SHI-MCI Yard in Lagos.
  • Completed GSM training scheme for about 4,000 trainees in Kano, Bauchi, Yobe, Kaduna, and Cross River States as part of development of linkage sectors.
  • Completed the upgrade of two (2) Vocational Technical Colleges in Akwa Ibom and Enugu states.
  • We launched NOGTECH HACKATHON and ENACTUS STIC to nurture innovation amongst our young minds.
  • NCDMB inaugurated a $50million Nigerian Content Research & Development Fund to drive basic research, commercialization of research breakthroughs, establishment of Centers of Excellence, and to sponsor University endowments.
  • The Board floated a $50 million special loan product for women in the oil and gas business to enable empowerment of the womenfolk in the industry.
  • We also established another $30 million Working Capital Fund to support oil and gas service companies. Both the Women and Working Capital funds are managed by Nexim Nigerian Export-Import Bank.
  • Last Thursday we secured the approval of our Governing Council to set up a $50 million fund for NOGAPS Manufacturing Product Line, to be dedicated to companies that would operate in the Nigerian Oil and Gas Parks, being constructed by the Board in Bayelsa and Cross River States. The beneficiaries would engage in the manufacturing of equipment components used in the oil and gas industry and linkage sectors.
  • Capacity Development Initiative for the Completion of the Block Tower and Workshops in the PTDF Skills Development Center at Omagwa, Port Harcourt, Rivers State.
  • The level of Expatriate Quota has continued in a downward trend due to our stringent monitoring activities and collaboration with the Ministry of Interior. We continue to utilize the Exchange Program and the Understudy Program under Expatriate Quota regime to develop required skills in the industry.
  • Construction of oil and gas industrial parks spread across six (6) states complete with the provision of infrastructure and utilities to enhance local manufacturing.
  • Partnership for the local manufacturing of 1.2 million composite LPG cylinders per year with the 1st phase scheduled for commissioning in 2022.
  • Partnership for the establishment of additional modular refineries in Bayelsa and Edo States.
  • Partnership for the construction of 300MMscfd gas gathering hub for gas supply into the OB-3 pipeline in Edo State.
  • Partnership to deepen LPG utilization in the North with the roll-out of LPG bottling plants and depots in ten (10) Northern States of Kaduna, Bauchi, Katsina, Kano, Nasarawa, Niger, Plateau, Gombe, Zamfara, Jigawa and Abuja.
  • Partnership to establish base oil manufacturing plant in Omagwa, Rivers State.
  • We now boast of very high engineering design capacity as Nigerian companies now have the required skills to do conceptual, FEED, and detailed engineering designs.
  • We now have capacity to manufacture low, medium, and high voltage cables and paints that can match any standard or quality in any part of the world.

Wabote said the listed achievements became possible through the adoption and implementation of local content in the oil and gas industry.

Looking ahead, the NCDMB Boss said:

“Now that Nigeria has a well-established local content in the oil and gas industry such that other nations are even coming to learn from us, we need to now extend it to other sectors of the economy to further drive our National Development in the growth trajectory.

It is important to state here that our plan in NCDMB is that by 2027, we will ensure 70 percent Nigerian Content; creation of 300, 000 direct jobs; retention of $13 billion of the estimated $20 billion spend in the oil and gas industry; ensure the domiciliation of major fabrication yards and manufacturing hubs in-country. These are no mean targets we have set for ourselves.

However, we are confident of hitting these targets, if not surpassing them, because of the can-do spirit of the Nigerian people.

I will conclude by saying that the Nigerian Content imperative is a journey, a marathon one for that matter. We will require all hands to join forces with NCDMB and government to pursue this cause in ensuring that the benefits of the oil and gas industry is retained maximally in Nigeria.

Let me once again express my gratitude to the Guild of Corporate Online Publishers for the support you have provided to the Board in the last five years that I have been on the saddle as the Executive Secretary.”

BCG: Fusion of Tech, Human Capabilities Delivers Innovation, Growth for Firms

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A new Boston Consulting Company (BCG) research findings published recently revealed that some companies are leveraging the full potential of technology and human capabilities to deliver innovation, adaptability and high performance.

The study, titled The Rise of the Digital Incumbent, explores how traditional companies that have successfully undergone digital transformation (digital incumbents) are building disruptive capabilities to compete with digital natives.

This is as legacy incumbents—traditional companies that have yet to deliver a successful digital transformation—struggled to drive growth and improve productivity using predominantly traditional levers.

The article describes a new hierarchy for business and highlights the different digital dynamics in four types of companies: legacy incumbents, digital incumbents, digital natives (companies founded in the digital era), and hyperscalers – the top dozen or so digital natives whose platforms, infrastructure, and data scale with enormous breadth and depth, thus conferring major structural advantages.

BCG leveraged global survey data from more than 950 senior leaders from all types of companies who were asked to describe where they are on their digital or bionic journeys, and to self-score their digital capabilities.

The research revealed that digital transformations are difficult, but companies can dramatically flip the odds of successfully becoming a digital incumbent by applying the six key success factors for digital transformation that were identified in 2020.

“The paradigm is no longer simply, ‘digital natives will destroy incumbents’,” says Romain de Laubier, a BCG managing director and partner and a coauthor of the article. “Digital incumbents in traditional industries are joining digital natives and digital hyperscalers in the congregation of companies that have the capabilities to disrupt existing business models and deliver innovation and revenue growth.”

Tolu Oyekan, the Managing Director, Partner and Head of BCG Nigeria, said, “Nigeria’s financial industry has demonstrated how successful digital transformation can lead to innovation, sustained relevance, profitability and business expansion. The emergence of digital natives (fintech) that are leveraging technology to offer disruptive services pushed the incumbent banks to embrace digital transformation initiatives that have improved financial inclusion and the growth of digital economy.

“There is, however, a lot more that these companies and those in other sectors can do to build digital capabilities comparable with digital natives,” he added.

The article asserts that the successful companies of the future will build the necessary digital capabilities—both human and technological—to become what BCG calls bionic. Along the way, they will deliver superior innovation and performance.

The authors detail the five attributes that best define any company’s progress toward the bionic target state:

  • Leadership with a purposeful digital strategy
  • A culture that promotes innovation
  • An agile operating model
  • The ability to attract, retain, and develop world-class digital talent
  • Open-architecture technology and data platforms

 

“Digital incumbents should take heart from the findings of this research,” says Patrick Forth, a BCG managing director and senior partner and a coauthor of the article. “They must continue to develop the five bionic attributes, which requires making the transition from successful digital reengineering to generating growth from innovation. For those that manage to build the necessary attributes at scale, the rewards of being both digitally capable and having the incumbent advantages of scale, scope, customer relationships, and data, will be substantial.”

The authors note that legacy incumbents are being left behind and need to act with urgency to reapply themselves, implementing the digital reengineering that will give them the digital capabilities they need to compete for growth.

 

Stanbic IBTC: 2022 Economic Outlook Webinar Targets Planning, Investment

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Stanbic IBTC Holdings Plc, a member of Standard Bank Group, recently hosted a webinar titled “2022 ‘Virtual Economic Outlook- Investing and planning in an election cycle.” The event was aimed at reflecting on economic trends that shaped 2021 and projecting into 2022.

According to the financial services provider, the webinar affords participants the opportunity to learn directly from economic experts on the importance of planning and investment.

Bismarck Rewane, Managing Director and Chief Executive Officer, Financial Derivatives Company Limited, and Muyiwa Oni, Head, Equity Research, Stanbic IBTC Holdings PLC, led deliberations at the virtual event.

Other speakers at the webinar were Eric Fajemisin, Executive Director, Corporate and Investment Banking; Remy Osuagwu, Executive Director, Business and Commercial Clients; Executive Director Client Solutions – Bunmi Dayo-Olagunju and Olumide Oyetan, Chief Executive, Stanbic IBTC Pension Managers.

Dr. Demola Sogunle, Chief Executive, Stanbic IBTC Holdings, set the tone for the event by appreciating the customers for the confidence and trust reposed in the organisation through their patronage. He assured Nigerians of valuable and exciting opportunities despite the likely headwinds as the nation prepares for its general elections.

Bismarck, who enumerated the current state of the Nigerian economy, noted that Nigeria’s expenditure currently stands at N19.63 trillion while its revenue stands at N10.71 trillion. This, he said, represented a fiscal deficit of N8.92 trillion, which translates to an increasing level of poverty, inflation, unemployment and the number of out-of-school children.

He noted that the number of fully employed Nigerians had dipped by 54.41 per cent in the last five years and the working population grew by 18.45 per cent, while 50 per cent of Nigerians remain idle.

Highlighting Nigeria’s fiscal position in five years, he noted that while oil prices increased by 62.36 per cent; currency and balance of trade weakened by 239.76 per cent and 35.95 per cent respectively, with gross external reserves gaining 39.29 per cent.

According to him, sustained supply concerns have helped to shore up global oil prices above $80 per barrel while the Central Bank of Nigeria has continued to step up its intervention programme in the forex market as the nation’s gross external reserves continue to dwindle. Also, he said, the naira has continued to witness increased pressure due to excess liquidity.

“The nation’s economy is expected to continue its rebound as witnessed in the last quarter of 2021 while oil prices are likely to remain high as major economies re-open fully and oil demand picks up. Furthermore, the advent of COVID-19 vaccines has continued to discount the impact of Omicron on oil demand while the effect of the Iran nuclear deal is expected to push up the nation’s oil supply to the global market. This is expected to provide more support to Nigeria’s earnings,” said Bismarck.

“To boost the manufacturing sector, the Central Bank of Nigeria (CBN) is likely to intensify its forex intervention as it seeks to increase supply to manufacturers, Also, the CBN is expected to step up efforts towards exchange rate convergence, increase its intervention in the forex market while the postponement of the fuel subsidy removal will dampen the anticipated spike in inflation for the year as trade policies are expected to become less protectionist.”

Eric Fajemisin, Executive Director, Corporate and Investment Banking, Stanbic IBTC Bank noted that Stanbic IBTC, through its business advisory services, has continued to help its customers make good investment decisions and provide them with business financing. Remy Osuagwu, Executive Director, Business and Commercial Clients also of Stanbic IBTC Bank said the organisation has continued to partner with the CBN in its various intervention programmes such as the Real Sector Fund, Anchor Borrowers Fund, and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), amongst others.

Olumide Oyetan, Chief Executive, Stanbic IBTC Pension Managers said that Stanbic IBTC, through its investment management vehicle, has continued to provide avenues for investors to profitably invest their funds short and long term while ensuring the safety of invested funds.

Bunmi Dayo Olagunju, Executive Director of Client Solutions, Stanbic IBTC in her concluding remarks, stated that the economic ecosystem can improve during the election cycle if digital technologies can be leveraged effectively.

Sovereign Trust Insurance Aligns Brand with the Arts

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Mr. Olaotan Soyinka Managing Director/CEO Sovereign Trust Insurance Plc
Mr. Olaotan Soyinka Managing Director/CEO Sovereign Trust Insurance Plc

The profile keeps rising for one of Nigeria’s forward-looking insurance companies, Sovereign Trust Insurance Plc, just as the Underwriting Firm extended its Corporate Social Responsibility intervention initiative to the world of Performing Arts in Nigeria with its recent collaboration with Lydar Productions on the production of the musical stage play titled, “Love and Its Other Sides” which will premiere on February 19 and run through February 27, 2022, at Terra Kulture Arena in Victoria Island, Lagos.

According to the Playwright and Producer of the Musical, Lanre Dele Abrahams, “Love and its other sides is a musical love sojourn, a throwback of love experiences over the decades. In other words, the Play explores love stories that were created before the notties’ generation.

The story is modeled around tales of love in the late 70s, 80s and 90s. The experience is delivered with heavy music and dance in a Western/Broadway musical style. The music is that which will appeal to the audience; music that tell the stories themselves and bring back nostalgic feelings.”

For Sovereign Trust Insurance Plc, the musical play affords the organisation the opportunity to tap into the so-called ‘Love Season’ which is embedded in Valentine’s Day in the month of February where lovers all over the world express romantic pleasantries in different forms and shades with exchange of gifts and love adulations in creative manners and styles.

According to the Spokesperson of the Underwriting Firm, Segun Bankole, the company’s support for the musical play is borne out of the need to bring families, friends and associates together in a very relaxed atmosphere with the aim of nurturing enduring ties amongst them.

He said the theatre, back in the days served as a rallying point for families and friends in terms of education and entertainment that were mentally stimulating but that the situation has really gotten to its lowest ebb and the theatre is fast losing patronage and something has to be done to revamp the theatre culture especially amongst the youths in the country.

In his words, “in line with our pioneering stance in the industry, we want to be part of the change agents that will revive the theatre culture just as we continue to push for an insurance culture amongst Nigerians in the country; that for us is the nexus.

The Writer, Producer and Director of ‘Love and its other sides’, Lanre Dele-Abrahams expressed profound appreciation to the Management of Sovereign Trust Insurance Plc for believing in the dream and ensuring it came into fruition with their support and encouragement.

He further explained that it is fundamentally important that more of such collaborations are established in the country if the creative economy is to thrive in the days ahead.

The Managing Director and Chief Executive Officer of Sovereign Trust Insurance Plc, Olaotan Soyinka, described the collaboration as a very fulfilling one for the organisation and expressed satisfaction with the level of professionalism and creativity that was put into the production of the performance. He said ‘Love and its other sides’ will remain a great piece of art as a reference point for the theatre movement in the country while also canvassing for more support and encouragement from corporate organisations in the crusade to revive the theatre culture in the country.

 

 

Absa: Businesses Can Tap into Stock Exchange to Drive Growth

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Akinkunmi Majaro

Head, Absa Securities Nigeria Limited

Soaring inflation and prolonged trading inactivity due to the global lockdown left businesses with huge inventories and a cashflow problem, which also disrupted funding pipelines.

Currently, large, medium, and small businesses are sourcing for funds to get their businesses back on track and pursue their growth mandate as markets open gradually.

Absa, which offers investment banking and market products through various Nigerian registered subsidiaries, namely Absa Representative Office Nigeria Limited, Absa Capital Markets Nigeria Limited, and Absa Securities Nigeria Limited, advised local businesses to tap into the ample pool of retail and institutional investors on the stock exchange to drive their growth aspirations.

According to Akinkunmi Majaro, the Head of Absa Securities Nigeria Limited, “Businesses consistently strive to grow. Therefore, continued access to cash flow and other investment resources are crucial for businesses aiming to build the competitive edge necessary to drive growth. Meanwhile, the global health crisis and its fallout are strong indications that access to long-term financing with fewer stringent demands is critical to staying resilient in an austere operating environment.”

He added, “The Nigeria Stock Exchange, especially, provides access to long and medium terms finance for structured businesses. Absa Capital Markets Nigeria Limited is positioned to help multinational and local businesses and a wide range of investors gain an overriding view of the capital market as well as guide investors and businesses in making wise investment and finance choices.”

Businesses would need long-term access to finance to strengthen operating cash flow, drive product development initiatives, enhance logistics, expand product promotion coverage, penetrate new markets as well as scale operating capacity to the pre-COVID-19 levels.

The ability of these businesses to access funds readily would positively rub off on economic growth. It would revamp the employment generating capacity of the organised private sector and subsequently impact the gross domestic product level.

Many businesses default to bank loans when they are squeezed financially. But the stringent requirements by the banks and the high interest rate on such loans remain a big challenge that small and medium businesses sometimes find hard to surmount.

Fluctuating currency exchange rates and inflation trends have further compounded SMEs’ ability to access cheap funding for their operations. It has therefore become apparent that businesses look beyond the commercial banks for their funding needs.

Traditionally, across the globe, capital markets offer an interesting opportunity for businesses that are looking to raise capital for medium to long term financing of their activities.

The stock exchange serves as a financial intermediary between investors and businesses listed on its floor. It is regarded as a trading crucible that links businesses to a large pool of local and foreign investors who are constantly searching for interesting investment opportunities.

These investors are anxious to boost their ROI and will put their monies in stocks that have favourable profit projections. The advantage for businesses on an exchange is that they can access large capital at lower cost.

Businesses listed on the country’s stock exchange, like Stanbic IBTC, MTN Nigeria, and BUA Foods, among others have an advantage in terms of access to low-cost capital to expand their operations.

BUA Foods Plc’s 18 billion shares, for instance, were recently listed on the exchange at N40. The listing on the stock exchange provided a lever for the BUA Foods business to raise capital and deepen its operating capacity in the pasta, edible oil, sugar, and flour segments of the local food value chain as well as drive its export capabilities.

While this move lifted the NGX Exchange (NGX’s) market capitalisation to N720 billion, it yielded a capital gain of 33 per cent for investors in the first week.

MTN Nigeria had a similar remarkable run in the first month of listing. Its shares appreciated from N99 to N129.45, yielding massive gains for investors while mopping up funds for the telecommunications giant to drive its network and mobile money expansion agenda.

Meanwhile, the finance opportunities available at the stock exchange are not restricted to large businesses. Structured small-medium enterprises need funding to navigate the teething challenges in the early growth stages.

Considering how the economy is holding up and the cautious approach of traditional lenders to small businesses, it is time for the segment to explore the capital market in a bid to access long-term finance to take advantage of emerging market opportunities. This is crucial for the survival of the segment.

Infact, there are tailored platforms that meet the capital needs of the SME segment on the floor of the stock exchange. The Growth Board on the NGX provides an alternative route for well-structured small businesses with potential for growth to list on the exchange. Businesses of all sizes can list on the stock exchange to access cheap and long-term tenured equity or capital from the capital market.

As businesses reopen fully for economic activities, and the Africa Continental Free Trade Agreement gathers pace, there is hardly a better time for businesses to access the opportunities available on the stock exchange to raise cheap long-term capital for their operations.

 

 

 

Insurance Sector 2021: N2tr Total Assets, N630bn Premium Income, N238bn Claims

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The National Insurance Commission (NAICOM) says the total assets of the insurance industry in Nigeria stood at N2, 139, 203.39 trillion in the 2021 business year while Gross Premium Income (GPI) stood at N630, 362. 35 billion in the same period, compared with N514 billion in 2020.

A statement by Mr. Rasaaq Salami, Head of Corporate Communications & Market Development at NAICOM added that the insurance industry also paid net claims of N238, 050.49 billion in 2021.

The NAICOM Report was titled: 2021 Insurance Industry Performance Unaudited.

‘Enforcement of Compulsory Insurances Will Boost Premium Income, Economic Growth’

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From L – R: (1) Hon. Mahmud Tofa, Special Assistant to the Kano State Governor on Intergovernmental Affairs. (2) The CFI. (3) Kano State SSG and Chairman of the Implementation Committee, Alhaji Usman Alhaji and (4) Alhaji Sabiu Bello, Deputy Commissioner for Insurance, Technical.

ADDRESS BY THE COMMISSIONER FOR INSURANCE, MR. O. S. THOMAS AT THE RETREAT FOR MEMBERS OF THE COMMITTEE ON IMPLEMENTATION OF COMPULSORY INSURANCES IN KANO STATE HELD AT ROCKVIEW HOTEL, ABUJA FROM 9 – 11, FEBRUARY, 2022

I would like to first appreciate his Excellency the Executive Governor of Kano State, Dr. Abdullahi Umar Ganduje for giving support to the Commission and to the sector to boost insurance penetration in Kano State.

I welcome members of the Committee to Abuja for this important retreat and as well. The speed at which the State Government has taken serious steps to implement this project has given us courage and confidence that insurance can indeed, thrive in Kano State in particular and, Nigeria in general.

I have been reliably informed that his Excellency has not only considered our request for office accommodation but directed an allocation of a comfortable office accommodation to the Commission. We are indeed grateful.

The objective of this retreat is to equip members of the Committee with requisite information and knowledge to enable them maximise opportunities that will help grow and develop insurance culture amongst Kano State citizens, boost internally generated revenue for the state and, as well serve as a social protection mechanism that will assist both Government and citizens in the event of any disaster.

The Committee is already armed with a robust and strong terms of reference to work; and the calibre of personalities saddled with this responsibility by his Excellency is not giving any room for doubts. It gladdens my heart that membership of the Committee cuts across various sectors of the economy and business community in the State.

We have put together various topics that will enable members of the Committee understand the nitty-gritty of the task before the it and how best to approach the assignment. The facilitators will take you through the carefully selected topics and I believe that at the end of the day, we will leave here better informed and prepared to carry out the assignment.

While not pre-emptying the presentations to follow, let me quickly mention the mandatory insurances that the Committee will be enforcing in the state, among others;

Third party motor insurance in respect of all mechanically propelled vehicles that ply the public roads;

Liability insurance cover in respect of all buildings under construction that are more than two (2) floors;

Liability insurance Cover in respect of all public buildings including schools, offices, hotels, hospitals, market shops, shopping malls etc.;

Professional indemnity for all medical practitioners and hospitals;

Group life insurance cover by all employers of labour for all their employees where there are more than 3 persons;

Annuity for retirees as provided under the Pension Reform Act 2014 as an option.

The above compulsory classes of insurance I believe should be adequately covered by the Committee.

Beyond the compulsory classes of insurance, the Committee could also look at encouraging individuals and corporate entities within the state to embrace other non-mandatory insurances either through Takaful Insurance (otherwise known as Islamic Insurance) or Microinsurance which caters for the low-income earners who constitute larger percentage of the population and businesses. This will enable an all-inclusive approach to the drive for insurance uptake and will address most of the sentiments against insurance in our society.

I want to assure the members of the Committee that the Commission is ready to provide all necessary support especially in the area of publicity, knowledge gap about insurance and expertise to assist you carry out your assignment successfully. I therefore will urge you to refer any matter you may require further guidance to the Commission. Suffice to say that the success of this project surely depends on the success of this committee.

It is my belief that once Kano State gets this right, the story is going to be the same with other states in the region.

As one of the leading commercial nerve centres in the country with huge population and business potential, the adoption and enforcement of these compulsory insurances will no doubt boost insurance premium income in the country, create thousands of employment opportunities in the state, improve standard of living of the people and increase the state’s internally generated revenue.

As I mentioned in Kano during our workshop recently, working out a fashionable mechanism will ensure Kano State an enviable status of a role model to other states in the country in the area of insurance penetration.

Let me also reiterate my earlier call on the committee to consider and make recommendations to the state government on ways of including insurance cover to secure funds disbursed either to farmers or traders in its poverty alleviation programs. As we all know, it is only with insurance that the government can guarantee business sustainability and revolving of funds for the future.

I want to once again commend His Excellency for this wonderful commitment and swift action to see that insurance takes its rightful place in Kano State. The entire cabinet have been so supportive and I must appreciate this hard work and resilience.