Access Bank Tops Print Advert Ranking in Q2 2020

31/07/2020

ThisDay Newspaper was the most sought after publication for banks, as BusinessDay Newspaper was the most sought after publication for insurance companies in terms of placement of adverts in the media. This was clearly analyzed by P+ Measurement Services, Nigeria’s foremost PR Measurement and Evaluation agency.

The report, based on the research data for advert and editorial analysis had an error margin of 5% at 95% confidence level and in Q1 and Q2 2020, a total of 3,360 publications were monitored.

A Senior Media Analyst at P+ Measurement Services said: “the need to show the impact of messages by the banking and insurance industry was the driving force behind this audit report and we will continue to lead the path in delivering media data-driven analysis in key sectors of the economy”.

He further stated that the sampled data and platforms used were 21 commercial banks in Nigeria and leading insurance companies’ media data; 44 newspapers including magazines; online media publications consisting of blogs, forums, financial sites, insurance sites, online news-sites and brand sites.

In the banking industry, Q2 2020 had the following financial institutions topping the chart for print media advert spend: Access Bank (N147m), Zenith Bank (N144m), Fidelity Bank (N92m), First Bank of Nigeria (N85m) and United Bank for Africa, UBA (N74m).

Furthermore, Q1 2020 had Access Bank (N163m), Zenith Bank (N161m), Fidelity Bank (N93m), United Bank for Africa, UBA (N91m) and First Bank of Nigeria (N81m) topping the chart amongst 21 commercial banks.

Conversely in the insurance industry, Leadway Assurance topped with the highest advert spend of N11m and N8m in Q1 and Q2 2020 respectively as AXA Mansard Insurance (Q1 – N6m, Q2 – N289,400) and Consolidated Hallmark Insurance (Q1 – N4m, Q2 – N2m) ranked closely, followed by Wapic Insurance (N3m) and Custodian Investment (N2m) which deployed advert only in Q2 2020.

Advert placement was sourced out more by the banking industry, with ThisDay Newspaper amassing N354,345,000 in Q2 2020 and N399,825,000 in Q1 2020. In the insurance industry, BusinessDay Newspaper amassed N4,754,000 in Q2 2020 and N10,845,700 in Q1 2020. Taking second place in the banking industry is BusinessDay Newspaper with N60,425,096 and N101,675,413 in Q2 and Q1 respectively and in the insurance industry, Daily Trust Newspaper made advert placements worth N2,606,859 and N810,600 in Q2 and Q1 respectively.

Third place was attained by Leadership Newspaper and The Punch Newspaper for banking and insurance industry respectively each with N54,565,357 in Q2, N70,600,511 in Q1 and N2,583,752 in Q2 and N3,609,757 respectively.

Findings from the report shows that the media engagement on Corporate Social Responsibility was led by Stanbic IBTC, Access Bank, Ecobank, First City Monument Bank and Fidelity Bank and the insurance companies that ranked most in the said engagement include WAPIC Insurance, Leadway Assurance, AIICO Insurance, AXA Mansard Insurance and Allianz Nigeria. The report also analyses the Partnership media engagement as Stanbic IBTC, First Bank of Nigeria, Ecobank, Access Bank and Heritage Bank led the banking industry while AXA Mansard Insurance, Leadway Assurance and AIICO Insurance led the insurance industry.

The media intelligence report shows the prominence of Chief Executive Officers of banks and insurance companies as Adesola Adeduntan of First Bank of Nigeria, Herbert Wigwe of Access Bank and Ebenezer Onyeagwu of Zenith Bank led the Bank CEOs and Babatunde Fajemirokun of AIICO Insurance, Tunde Hassan-Odukale of Leadway Assurance and Adeyinka Adekoya of WAPIC Insurance led the insurance CEOs in Q2 2020.

Ecobank Nigeria Unveils Special Loan Package for Female Entrepreneurs

Business Journal

30/07/2020

Ecobank Nigeria has unveiled a special loan package for female entrepreneurs in the country. The Ecobank Female Entrepreneurs’ Initiative (EFEI) loan is specially designed by the bank to financially empower female business owners and entrepreneurs in the country.

According to Head, Consumer Asset Product, Ecobank Group, Daberechi Effiong, the EFEI loan as conceived by the bank, is targeted at boosting small scale businesses owned by women, adding that it is a further demonstration of the importance the bank attaches to the role of women in sustainable development and contribution to the nation’s economy.

Mrs. Effiong who is also the EFEI Coordinator, explained that prospective female business owners could access credit with interest rates as low as 1 per cent, noting that the process for accessing the credit facility is easy and stress-free.

“The EFEI loan is one of our several ways of further encouraging female entrepreneurs in the country. As a bank, we believe empowering women will enable them play their role better in the society and the economy. This loan would position them for increased participation, validation and contribution to their communities. The terms and conditions for accessing the loan are simple and easy such that many female entrepreneurs could readily avail themselves of the opportunity and grow their business.”

She advised the women business owners to approach the bank online through our social media platforms or send a mail to [email protected] for the loan to boost their business, assuring them of Ecobank’s support and assistance in growing their business.

EFEI was introduced by the bank to assist women business owners. Earlier in the year, Ecobank trained over 140 female business owners through the EFEI platform on digital marketing skills in its state-of-the-art Academy. This was a follow up to a two-day capacity building on cash flow management and EFEI business opportunities held last year.

The digital training drew participants from Lagos and its environs and they were exposed to seminars, networking events, loans, trade fairs and exhibition of customers’ products.

Emirates Resumes Nairobi, Africa Flights, Unveils Special COVID-19 Health Cover

Business Journal

29/07/2020

Africa is getting a priority in Emirates’ latest resumption plans.

Emirates has announced it will resume flights to Nairobi (from 2 August), Baghdad and Basra (from 10 August), expanding its growing network, and offering customers in Africa and around the world more convenient connections to Dubai, and via Dubai.

This will take the airline’s passenger network to 67 destinations in August, including seven points in Africa and five points in the Middle East. This underscores the strategic importance of Africa to Emirates.

Flights between Nairobi and Dubai and Basra and Dubai will operate three times a week while flights between Baghdad and Dubai will operate four times a week. The flights will be operated with the Emirates Boeing 777-300ER and can be booked on emirates.com or via travel agents.

Customers from across Emirates’ network can now to travel to Dubai as the city has re-opened for business and leisure visitors with new air travel protocols that safeguard the health and safety of visitors and communities.

Customers can also now travel with confidence, as Emirates has committed to cover all COVID-19 related medical expenses, free of cost, should they be diagnosed with COVID-19 during their travel.

This cover is offered by Emirates free of cost to its customers regardless of class of travel or destination. It is immediately effective for customers flying on Emirates until 31 October 2020 (first flight to be completed on or before 31 October 2020), and is valid for 31 days from the moment they fly the first sector of their journey. This means Emirates customers can continue to benefit from the added assurance of this cover, even if they travel onwards to another city after arriving at their Emirates destination.

Customers do not need to register or fill in any forms before they travel, and they are not obligated to utilise this cover provided by Emirates.

Any impacted customer who has been diagnosed with COVID-19 during their travel simply has to contact a dedicated hotline to take full advantage of the assistance and cover.

The hotline number, and details of what COVID-19 related expenses are covered, is available on the Emirates website.

With the gradual re-opening of borders over the summer, Emirates has revised its booking policies to offer customers more flexibility and confidence to plan their travel.

Customers whose travel plans are disrupted by COVID-19 related flight or travel restrictions, can simply hold on to their ticket which will be valid for 24 months and rebook to fly at a later time. They can also request travel vouchers to offset against future Emirates purchases, or request refunds via an online form on Emirates’ website or via their travel booking agent.

Emirates has implemented a comprehensive set of measures at every step of the customer journey to ensure the safety of its customers and employees on the ground and in the air, including the distribution of complimentary hygiene kits containing masks, gloves, hand sanitiser and antibacterial wipes.

Customers are reminded that travel restrictions remain in place, and travellers will only be accepted on flights if they comply with the eligibility and entry criteria requirements of their destination countries.

NAICOM Begins Process to Register HEIRS, Enterprise, Stanbic as Insurers

Business Journal

25/07/2020

The National Insurance Commission (NAICOM) says it has received applications from four companies for registration as insurance firms to operate in Nigeria.

The four firms are: HEIRS Insurance Limited, Stanbic IBTC Insurance Limited, HEIRS Life Assurance Limited and Enterprise Life Assurance Company Nigeria Limited.

The statement from NAICOM read in part:

‘PUBLIC NOTICE ON REGISTRATION OF NEW INSURANCE COMPANIES:

The National Insurance Commission (NAICOM) has received applications from the under listed companies for registration as Insurance Companies to transact insurance business in Nigeria.

In fulfillment of the statutory provisions of extant laws for the registration/licensing of insurance Companies, the general public is hereby informed that the Commission has commenced the process of registering the companies. Members of the public are requested to submit/report any objection or otherwise against these registrations to the Commission within 21 days from the date of this publication, please.’

Ecobank Assures Farmers of Seamless Processes to Access Agric Loans

Business Journal

23/07/2020

Ecobank Nigeria has assured farmers who are beneficiaries of the Anchor Borrowers programmes for the 2020 wet season and members of the Maize Growers, Processors and Marketers Association of Nigeria (MAGPAMAN), of a seamless account opening and loan processing. According to the bank farmers need not panic as it is committed and will make sure all beneficiaries get the loans.

In a statement the bank said farmers accounts have been opened across the 36 states based on CBN prequalification for account opening for farmers. KYC regularisation can be done simply visiting a nearby Ecobank branch or input collection centre with 2 passport photograph to execute the account opening documents.

In an earlier statement Ecobank had stated that over 70,000 farmers are earmarked to benefit from the loan scheme which is done in partnership with the Central Bank of Nigeria (CBN). Ecobank’s Head, Agribusiness, Mojisola Oguntoyinbo, the initiative spreads across the 36 states and is one of the several concerted efforts on the part of the bank to support the government to create an ecosystem that gives small holder farmers access to funding and the required support to increase food production in the country. According to her the scheme is designed to connect small holder farmers with processors and off- takers within the agriculture value chain.

She reiterated that Ecobank is actively leveraging entrepreneurship as a strategy to tackle poverty and growing unemployment, through the creation of relevant platforms, which includes the Xpress Point, which is the bank’s agency banking proposition that enables agents carry out financial transactions on behalf of Ecobank and earn commission on transactions processed.

NAICOM Committed to Insurance Development in Nigeria

Business Journal

23/07/2020

Mr. O.S. Thomas

Commissioner for Insurance

NAICOM

Mr. O.S. Thomas, the Commissioner for Insurance, National Insurance Commission (NAICOM) says the Commission is committed to development of insurance across all strata in the country and would continue to do more to ensure inclusive development of insurance.

Thomas added that NAICOM is also committing huge resources to actuarial development in the country in collaboration with the Chartered Insurance Institute of Nigeria (CIIN) through the College of Insurance and Financial Management though the entire process has been affected by advent of the COVID-19 pandemic.

“The Commission will continue to collaborate and support the Institute where possible, for the attainment of quality education, training and improved ethical behaviour of practitioners. The Commission’s concern for specialised regulators’ training has prompted the inception of the process of establishing the NAICOM Academy which will not only serve the training need of the Commission but also those of other regulators in the West African sub region.”

He assured the Institute that the Academy will not compete but complement the activities of CIIN for the benefits of insurance business and insurance profession.

“The future of the profession is very bright and the potentials are enormous, we only need to fill the gaps.”

Nigerian Insurers Must Inculcate COVID-19 Experience in Transactions

Business Journal

21/07/2020

Mr. O.S. Thomas

Commissioner for Insurance

National Insurance Commission (NAICOM)

Mr. O. S. Thomas, the Commissioner for Insurance, National Insurance Commission (NAICOM) has urged insurance operators in Nigeria to inculcate the experience of the current COVID-19 pandemic in their transactions going forward. He said the pandemic also presents a new challenge to the business of insurance in Nigeria.

Thomas made the remarks at the investiture of Mr. Muftau Oyegunle as 50^th President of the Chartered Insurance Institute of Nigeria (CIIN) in Lagos.

The CFI said: “My dear insurance professionals and practitioners, let us be aware that the advent of the prevailing Corona Virus pandemic COVID-19 has presented a new challenge to the insurance sector. Thus, a paradigm shift from the usual way of practice has become inevitable. What this means in essence is that insurance practitioners must learn to inculcate the new world order brought about by the COVID-19 experience. This has become an imperative rather than an option. Suffice it to say that critical times require critical measures. The challenges before the Institute during and post COVID-19 are enormous; how you do your marketing for new members, how you run your education seminars, where and how you conduct your examinations for prospective members will all be affected by the prevailing circumstance. I therefore urge the new leadership to take these challenges into serious consideration in developing new curriculum for the Institute.”

The NAICOM chief described the CIIN as “the most unifying factor that binds us together as insurance professionals; as such, the position of President of the Institute is one of the most revered as far as insurance practice in Nigeria is concerned. As the custodian of our values and entrencher of ethical behaviour in the practice, a herculean task certainly awaits whoever emerges the president of the Institute at any particular time not to mention such a challenging time as we are currently experiencing.”

He paid glowing tribute to the outgoing President of the Institute, Mr. Eddie Efekoha for all his efforts at moving the Institute to the level it is today despite the challenges.

“I salute his doggedness, commitments and passion for the profession; not forgetting also the professional advice, contributions, support and cooperation the Commission enjoyed during his leadership.”

He said Mr. Oyegunle has had a long history with the Institute, working with different presidents at different times as member of the Council.

“We expect that as you receive the mantle of leadership which symbolises power and authority in determining standard and practice of our profession, you will bring the experience garnered over the years to bear in the discharge of your new responsibility. More than ever before the Institute must embrace technology as one of its key drivers for development. The Institute should be prepared to digitalize its processes, procedures and systems in order to make its operations seamless and real time.”

The NAICOM CEO urged the new President thus:

“As a professional Institute, your communication and engagement with your stakeholders cannot be encumbered by disruption to physical interactions. I want to challenge the new leadership of the institute to make this a priority in its agenda. Of course, training and deliberate exposure of existing members of the institute to new technology would also go a long way in reshaping their perspectives. Public perception of insurance business still remains very low largely due to the unacceptable professional conduct of very few of our members. The Institute has a pivotal role to play in rebranding and reshaping the ethical behaviour of members in order to ensure that every member is a true representative of the core values the insurance profession stands for.”

N5tr Recovery Possible if AMCON Unleash Full Powers – Legal Experts

Business Journal

19/07/2020

Managing Director/Chief Executive Officer, Asset Management Corporation of Nigeria (AMCON), Mr. Ahmed Kuru at the weekend reiterated the fact that if at sunset AMCON is unable to recover its outstanding huge debt of over N5trillion, the debt burden would automatically become the debt of the Federal Government of Nigeria for which taxpayers’ monies will be used to settle in the long run.

Kuru who spoke in Abuja at the first seminar for AMCON Receivers/Receiver Managers in General Enforcement said the implication of such failure would be that the Nigerian public will be made to pay for the recklessness of only a few individuals who have continued to take advantage of the loopholes in our laws to escape their moral and legal obligations to repay their debts.

The AMCON Chief Executive who was represented at the event by Mr. Aliyu Kalgo, AMCON’s Group Head, Resolution Strategy at the 2-day event called on all AMCON partners especially in the receivership business not to allow a few individuals to escape with the commonwealth of all Nigerians. He however cautioned that whatever step AMCON Receivers intend to take in the process must however be in strict compliance and within the confines of the law.

Kuru who underscored the key role of AMCON Receivers in the debt recovery drive of the government agency said further, “…We reiterate, our Receivers are very key to the success of AMCON. In order to streamline the functions of our Receivers and make them more effective and accountable, we have developed a new Receivership Framework, which will henceforth govern our relationship in terms of management of the assets and accountability.

“We have had course to disengage some of our Receiver Managers due to non-performance. We did that because assets are being abandoned without cause or plan to come out of the debt. And at times Receiver Managers are confused about their responsibilities. Therefore, I urge the participants to partake actively in this interactive session and share some of their experiences with one another so that we can all succeed in our collective efforts to recover the over N5trillion from these recalcitrant debtor, which is a national assignment,” the AMCON Boss said.

Speaking in the same vein, Dr Francis Chuka Agbu SAN, the Senior Partner, Lexavier Partners and Mr Alheri B. Nyako, the Chief Executive Officer of Alheri Legal and Allied Services Consulting and a former Board Secretary/Director Legal at the Nigeria Deposit Insurance Corporation (NDIC) took their turn to amplify the position of the AMCON CEO as well as the many possibilities AMCON can leverage to hasten recovery given the enormous powers of receivership as well as winding up and bankruptcy proceedings in its Act, which they described as undisputable and potent tools for debt recovery.

Dr. Agbu SAN, who was also represented by Mr Mohammad Sani Umar described receivership as the most effective debt recovery tool within the current insolvency/debt recovery regime and challenged AMCON to leverage it to the maximum to help Nigeria especially now that the federal government needs a lot of money to bridge Nigeria’s financial challenged that have been heightened by the outbreak of the dreaded Coronavirus (COVID-19) pandemic.

He said, “Receivership, as a debt recovery strategy, is arguably the most effective debt recovery tool within our current insolvency/debt recovery regime. This is primarily because of the control, which it gives to the debenture holder/creditor over the assets, or the assets and business of the debtor company. By virtue of section 393(4) of CAMA, upon appointment of a Receiver and Manager, the powers/control of the directors over the debtor company becomes immediately suspended. Even where the Receiver is not empowered to act as Manager, he retains executive control over such portion of the company’s assets, which have been charged.”

Narrowing down to how AMCON can apply the powers of receivership, the senior advocate of Nigeria added, “With respect to AMCON Receivership, the AMCON Act has further extended the powers/rights of AMCON-appointed Receivers beyond the scope of CAMA and the general principles on receivership. Firstly, pursuant to Section 48(3) of the AMCON Act, the Receiver’s powers to assume control over the assets of the company is not limited to the assets, which have been charged under the Eligible Bank Asset (EBA), but also included unpledged/uncharged assets.

“This extraordinary provision bestows a far-reaching advantage on AMCON in the realisation of outstanding EBAs by enabling AMCON to sustain maximum pressure on the debtor company (including its officers and shareholders) and increasing the pool of assets from which AMCON may realise the indebted sum.”

On his part, the Chief Executive Officer of Alheri Legal and Allied Services Consulting who insisted that AMCON must activate winding up and bankruptcy proceeding in its debt recovery drive argued that Section 52 of the AMCON Act has already provided for winding up of a debtor’s company upon a demand notice for a liquidated sum owed and failure to pay in full within 30 days, thus, making the inability to pay a debt a ground for winding up under the AMCON Act, which is similar to Section 408 (d) of CAMA.”

Global Insurance Industry to Recover Strongly from COVID-19 Decline-Sigma Report

Business Journal

19/07/2020

The insurance industry is set to overcome this year’s COVID-19-induced global economic recession, the latest Swiss Re Institute’s sigma says. The sharpest economic contraction since the 1930s will lead to a slump in demand for insurance in 2020, more so for life products, with global premiums expected to contract by 6%, than for non-life covers (-0.1%).

However, total premium volumes will return to pre-crisis levels in 2021 already, alongside more protracted recovery in the global economy. There will be sector divergence, with non-life premium volumes above pre-crisis levels, and life below. The emerging economies, led by China, will underpin the insurance market comeback.
“The insurance industry is showing resilience in face of the COVID-19-led economic downturn,” Jerome Jean Haegeli, Group Chief Economist at Swiss Re said. “The magnitude of premium losses will be similar to that seen during the global financial crisis in 2008-09, even though this year’s economic contraction of around 4% will be much more severe. Unlike for the global economy, we expect a strong V-shaped recovery in insurance premiums, a remarkable showing considering that the world is currently in the throes of the deepest recession ever”.
This year’s recession will be the deepest since the Great Depression of the 1930s, but it will also be short-lived. The recession will lead to a steep fall in demand for insurance. After growing by 2.2% in 2019, global life premiums are forecast to contract by 6% in 2020.

Due to prevailing and lower interest rates, savings products will be more affected, while mortality related covers will be more stable. The non-life sector will fare better, with global premiums forecast to be broadly flat (-0.1%) after growing by 3.5% in 2019.

A main reason for the better showing in non-life is that the COVID-19 crisis has hit at a time of rate hardening in the sector, which has supported premium growth. Premiums in trade and travel-related insurance business such as marine, aviation and credit will be hit the hardest. Property and medical business will be more stable.

Swiss Re Institute estimates that total premium volumes in advanced markets (life and non-life) will shrink by 4% this year and return to positive growth of more than 2% in 2021. In the emerging markets, premium growth will remain in positive territory in both years, up 1% in 2020 and 7% in 2021.

There is exceptional uncertainty about what the ultimate claims burden from the pandemic will be, with the mid-point of the range of current estimates from various external and public sources at around USD 55 billion. The insurance industry is very well capitalised to absorb losses.
“The industry’s capital position means it should be able to handle the COVID-19 shock. The upper end of the range of total property and casualty claims estimates by most external insurance analysis is USD 100 billion, similar in scale to losses caused by Hurricanes Harvey, Irma and Maria in 2017, which the industry also absorbed,” Haegeli said.

“The COVID-19 experience highlights the importance of insurance provision for pandemics. It is a lesson for insurers and policy makers alike who, in the interest of long-term societal and economic stability, should look to develop more public-private partnership solutions for pandemic risks.”
The COVID-19 crisis will present challenges to industry profitability. In addition to pandemic-related losses, investment returns will remain subdued as interest rates stay low for longer, impacting life and long-tail lines in non-life. Rising corporate defaults could lead to losses on invested assets.

In life, claims payments due to COVID-19 will likely have limited impact, but falling sales and fee income due to restricted in-person interactions on account of the lockdown measures imposed to contain the spread of the coronavirus, will weigh on profits this year.
On the flipside, COVID-19 has hit at a time of rate hardening in non-life, a trend that is likely to continue amid potentially high losses and contracting insurance supply, particularly in commercial lines. This, and the expected bounce-back of insurance demand, will support earnings over the longer term.

The experience of this year’s health and economic crises will raise risk awareness and demand for risk protection across many lines of business.

The COVID-19 shock will likely accelerate other paradigm shifts too, such as a restructuring of global supply chains to mitigate future business disruption risks, giving rise to new premium pools in property, engineering and surety insurance.

A Business Case for Telecom Tariff Reduction

Business Journal

17/07/2020

By Elvis Eromosele

The news media is inundated with reports that the price of data and telecommunication services are expected to crash 40 per cent by 2025. This, according to Dr. Isa Ibrahim Pantami, Minister of Communications and Digital Economy, is based on the steps taken by the Federal Government to attract huge local and foreign investments,

According to the Minister, the government has addressed two critical challenges in the telecommunications industry, particularly Right of Way (RoW) charges and infrastructural protection and development. He explained that these activities are part of the policy measures taken by the present administration to promote the digital economy and improve the living standard of the citizenry.

The goal is admirable. This explanation, however, is too simplistic. The logic is flawed, the argument untenable and the numbers won’t add up This is definitely not how markets operate.

Someone would need to explain the sort of market dynamics that will make this possible because it is not clear to the uninitiated.

Granted, the reduction of RoW charges by seven states beginning with Ekiti is commendable. It would help to increase the pace and ease the cost of rollout. It is expected to equally attract new investment in broadband connectivity, boost the creation of new businesses, jobs, and thus by implication, improve access to e-healthcare, digital education and electronic services in general.

But the major determinant of a tariff of any sort is the cost of operation. And the cost of operation for businesses in Nigeria is certainly not going down. Most businesses would attest to this.

For a case in point, consider foreign exchange. The rates have been dropping faster than a hot knife through butter. And everyone knows that the bulk of telecom equipment is imported. So, the maintenance and expansion of growth are getting more expensive daily. This is a situation that is not likely to improve anytime soon.

In addition, the cost of power is rising everywhere. The power distribution companies (Discos) are talking of increasing tariff, diesel and petroleum prices have gone up. As companies expend more resources on power, it is almost lunacy to expect prices to crash.

Take tax. The Nigerian government has increased Value Added Tax (VAT) from 5 per cent to 7.5 per cent. So, VAT has essentially gone up by 50 per cent in 2020.

The average revenue per user (ARPU), defined as the total revenue divided by the number of subscribers has been dropping every year in the last decade. ARPU is a metric that helps businesses better understand the sustainability of their operations and a possible path to profitability. In the communications sector, ARPU is dropping.

Vandalism remains a big issue. Billions are lost yearly. Monthly, there are countless fibre cable cuts, thousands of generators stolen and diesel siphoned from base stations.

All these are in addition to the exigencies of running a business in a highly competitive space like telecommunications. Operators are known to be cutting cost to improve sustainability.

Yet someone expects prices to crash?

The expectation of tariff reduction is not based on any known fact. It doesn’t add up. It is almost impossible to expect tariffs to drop when everything else is going up.

Yes, telecom tariff reduction is desirable. But there are things that must be done to achieve this. To provide a guide, here are five things that the government can do to actually improve the chances of sustainable tariff reduction.

First off, let the reduction in right of way charges be implemented across every state. The government at the federal and state levels must work together here. Then it would really be meaningful. Some others have suggested that there should be different tariff for different states. This is another option worth a thought.

Then there is the issue of VAT. There is a need to reduce VAT, revert to the previous five per cent status. The truth is that ‘VAT is cake’. You can’t eat it and still have it.

Furthermore, there should be special exchange rates to aid and indeed facilitate the procurement of telecom equipment. Efforts should also be made to encourage, where possible, indigenous production of some components.

The government should also provide grants to promote investments and better-quality services in underserved areas. The Universal Service Provision Fund (USPF) was established precisely for this sort of things. One can only wonder about what is going in that space right now.

Generally, there is an urgent need to improve the general ease of doing business. This covers clearance at the ports, improvement in power supply and regulatory fairness, among others. Nigeria is currently ranked 131 on the World Bank’s Doing Business 2020 index. It can be better!

Lower telecom tariff are truly desirable. It would greatly benefit consumers. It would also impact the economy positively. But it should be a business decision and not by executive fiat.

The government needs to think holistically. Supply, demand and operating cost are near indispensable items in this discussion.

In reality, government fiat and regulation are not the ideal ways to strengthen market competition that would lead to price/tariff reduction. Indeed, it is always better to encourage market competition, create a platform for it to thrive and promote the progress made.

This is the way to go.

Elvis Eromosele, a Corporate Communication professional and public affairs analyst lives in Lagos.

Ecobank Digital Channels: ‘Best Bet to Enjoy Safe, Convenient Digital Banking’

Business Journal

17/07/2020

Ecobank advises its customers to utilise the bank’s digital banking platforms which include *326#, EcobankPay, Ecobank Online, Ecobank Mobile, Ecobank OmniLite and the Rapidtransfer App.

One of the incentives being used by Ecobank, to enable customers embrace digital banking, is the free offer on transfers below N5,000.

“This zero-charge offer has been running for three months now and will continue till the 30th of September 2020.” These were the words of Olukorede Demola-Adeniyi, Head, Consumer Banking, Ecobank Nigeria.

Further, she said: “Ecobank’s USSD code, *326#, which is popularly known for its zero session fee can also be used for other transactions such as paying bills, sending money, buying airtime, checking BVN, applying for an Xpress Loan, opening a bank account instantly and even generating an e-token for cardless withdrawals at any Ecobank ATM or Xpress Point. Amazing features have been added to the updated Ecobank Mobile App to make the users’ banking experience not just simpler, but also safer and more rewarding. Some of these unique features include the ability to create a virtual card, send money via text or email, split bill and request money.”

Mrs. Demola-Adeniyi, who was speaking on the backdrop of the advantages of digital banking noted that e-banking or digital banking as it is commonly called, has become the order of the day for both the young and old, especially now, as our current reality encourages us to adopt social distancing.

“To avoid non-essential contact and bank remotely, all a customer needs is a mobile device. It is also important to note that there is a need for customers to maintain online safety to avoid falling victim to fraudsters and scammers. Customers who need to make enquiries or register complaints can do so by following the bank’s verified social media pages and reaching out to our 24-hour contact centre by email, calls or live chat” she stated.

Standard Bank Partners Global Expert to Unveil Paper on Africa’s Platform Economy

Business Journal

10/07/2020

Many African organisations are well placed to drive the next wave of innovation in the global platform economy, according to the findings of a report by world-renowned platform economy expert Sangeet Paul Choudary and Standard Bank’s Corporate and Investment Banking (CIB) Digital unit.

The paper, titled ‘Can Africa take the platform economy forward?’, analyses the challenges facing the continent’s platform economy, the path it is likely to follow, and the untapped opportunities for long-established organisations.

Despite several unique challenges across the continent, the platform economy is gaining traction in Africa as consumers and businesses grow more accustomed to online services.

Embodied by the likes of Amazon and Uber, the platform economy refers to value-creating interactions facilitated by digital intermediaries.

Africa’s sophisticated mobile-money market is one of the best-known examples of platform innovation on the continent, which is fast developing alternative infrastructures in response to the dearth of continent-wide traditional digital infrastructure.

As its platform economy takes root, Africa may well draw on the experiences of both India and China, whereby governments work to develop standards and create basic digital capabilities such as identity management, while private companies build out the necessary financial and logistics infrastructure.

At the same time, opportunities exist for traditional African organisations to drive new innovations and develop new operating models in the platform economy.

With their extensive networks and ecosystems of clients and partner organisations, companies that are already deeply entrenched in the African market are well placed to facilitate the growth of the business-to-business sharing economy, in which companies drive efficiencies by sharing services, processes and digital assets.

“Banking groups are among those that could seize this opportunity,” says Kent Marais, Head: CIB Digital Channels, Standard Bank. “For example, a financial services organisation can provide a digital platform that facilitates value-creating interactions between ecosystem participants – clients and other partner organisations”.

In this scenario, a corporate banking client that has developed a robust risk-management function could consider taking on the role of a capability provider that on-sells this service to other businesses in the ecosystem.

Platform owners themselves can also on-sell some of their own digital capabilities which they have built up over the years and invested heavily in. For instance, a telecommunications company with a mobile-money platform could provide credit-scoring services to e-commerce platforms keen on offering instalment-based payment options to boost sales.

By participating in the platform economy, organisations have an opportunity to better service clients while also generating new revenue streams.

“Globally, the current health and economic crisis sparked by the Covid-19 pandemic has brought platform operating models to the fore, and the digital infrastructure providers behind them – cloud providers such as Microsoft, Amazon and Google – are playing a crucial role,” says Sangeet Paul Choudary.

“But the crisis has also resulted in a stalling of big-tech regulations,” he adds.“Against this backdrop, there needs to be a focus on ensuring that we leverage platforms to develop solutions to humanitarian problems, and to ensure that organisations are more efficient and able to withstand this shock and the period that will follow.”

As the Covid-19 pandemic weighs heavily on the African and global economy, it is clear that platform companies are faring better than most. African organisations should consider how they can participate in this segment of the market – whether that means building and owning platforms themselves or participating in them, or both – to ensure that they are agile and able to adapt their offerings while also accessing new revenue streams.

The paper, launched digitally, was authored by Choudary and Standard Bank CIB Digital’s Jonathan Lamb and Kent Marais.

Chubb Estimates $1.4bn in Q2 Global Losses Tied to Coronavirus

Business Journal

08/07/2020

Chubb’s disclosure of second quarter 2020 global net catastrophe losses underscores the damage COVID-19 is doing to some carriers’ bottom lines.

The global property/casualty insurer estimated $1.8 billion in pretax catastrophe losses for Q2, or $1.5 billion after tax. Of that number, close to $1.4 billion in pretax catastrophe losses stem from the coronavirus pandemic, or $1.15 billion after tax. Losses from severe U.S. weather events and U.S. civil unrest constitute the difference, Chubb said.

Chubb released its Q2 catastrophe loss estimates on July 6 after the markets closed.

Coronavirus losses could be an issue for some time, Chubb Chairman and CEO Evan Greenberg suggested during his comments about 2020 first-quarter earnings earlier this year. “In this case the degree of revenue impact is simply unknowable,” Greenberg said at the time.

According to the insurer, its pretax catastrophe loss estimate includes $605 million in short-tail losses generated primarily from entertainment and commercial property-related business interruption and accident and health (A&H) products including travel insurance products, and $553 million in losses related to liability insurance products, including professional liability (directors and officers, employment practices, professional liability, etc.) and workers compensation and other liability-related products.

The estimate also includes $107 million stemming from insurance credit exposures including surety, political risk and trade credit.

Substantially all of the losses for liability and credit-related insurance products are classified as incurred but not reported (IBNR) reserves, Chubb said. The loss estimate also includes a $100 million IBNR provision to account for the additional uncertainty in the estimates around the company’s property, casualty and credit-related exposures, given this unprecedented event.

Approximately 71 percent of the COVID-19 estimate relates to the company’s North America Commercial P/C Insurance segment and 28 percent covers the Overseas General Insurance segment.

Ecobank Nigeria Promotes Entrepreneurship, Extends Agric Loan to 70,000 Farmers

Business Journal

08/07/2020

Ecobank Nigeria has restated its commitment to the Agricultural sector and is supporting over 70,000 farmers with special loans to increase their capacity and yields during this planting season.

This is one of the bank’s initiatives to promote entrepreneurship in the sector and is in support of the Central Bank of Nigeria’s Anchor Borrowers programmes for the 2020 wet season with the Maize Growers, Processors and Marketers Association of Nigeria (MAGPAMAN).

Head, Agribusiness, Ecobank Nigeria, Mojisola Oguntoyinbo, announced this in Lagos while responding to media enquiries on the participation of the bank in the CBN scheme. According to her, the initiative spreads across the thirty-six states of the Federation and is one of the several concerted efforts on the part of the bank to support the government to create an ecosystem that gives small holder farmers access to funding and the required support to increase food production in the country. She also noted that the scheme is designed to connect small holder farmers with processors and off takers within the agriculture value chain.

“We are creating opportunities in the Agric sector that will help many small holder farmers expand their business and become worthy employers of labour by adopting modern farming techniques for the betterment of our economy. We are in strategic partnership with NIRSAL and some other developmental institutions to achieve our purpose. We are also partnering the Central Bank of Nigeria (CBN) in all its intervention schemes and programmes aimed at developing the sector. Our relationships are generating positive activities across the entire Agric value chain.”

This comes on the heels of the bank’s widely acclaimed Agri-business summit with key stakeholders, held earlier in the year.

Ecobank has been actively leveraging entrepreneurship as a strategy to tackle poverty and growing unemployment, through the creation of relevant platforms.

One of such platforms is the Ecobank Xpress Point, the bank’s Agency Banking proposition which enables Agents carry out financial transactions on behalf of Ecobank and earn commission on transactions processed.

Thousands of Nigerians have taken advantage of this opportunity to become Xpress Point agents and have in turn, employed several others, thereby improving financial inclusion and creating employment opportunities. Xpress Points are in various neighbourhoods across the country and are well positioned to facilitate financial transactions in the communities which they serve.

Embracing Healthy Food Culture in Nigeria

Business Journal

08/07/2020

By Reginald Onabu

Culture separates, yet connects, the world. People are either pulled together or else separated by their cultures. The impact of culture is widespread and diverse. Culture, as defined by Livescience.com, is the characteristics and knowledge of a particular group of people, encompassing language, religion, cuisine, social habits, music and arts.

Food is definitely an important ingredient of culture. Many times, what people eat, how they prepare what they eat and sometimes who can eat what, all depend on the prevalent culture. Indeed, people may connect to their cultural or ethnic groups through similar food patterns.

Naturally, the impact of culture on nutrition is high. In some instances, culture can inhibit the progression of healthy nutrition. For example, some cultures believe that if a child is given eggs to eat, the child will grow up to become a thief. Other cultures forbid their clansmen from eating a particular type of food, as this will offend the ancestors. There are places in this country where people don’t eat chicken and others forbid beef.

Certain food taboos and other cultural rites prohibit children from eating meat or eating coconuts. The belief is that these food sources will make them unintelligent. These cultural constraints and food biases may result in malnutrition and other nutrition-related ailments, including protein deficiency.

Protein deficiency, a type of malnutrition, is the lack of protein nutrients in the body, and it poses a significant problem in Nigeria. Protein is widely regarded as an essential building block of life. It is a macro-nutrient found in literally every cell of the body. Macronutrients are foods that the body needs in large amounts. Protein is an important ingredient used to build, maintain and repair body tissues and muscles.

Recently, at a webinar titled: ‘Nigeria’s food culture and the challenge of protein deficiency’, nutritionists and public health experts explored the nexus between the food culture in Nigeria and the protein deficiency situation.

The webinar was organised by Protein Challenge, which is the tag for the Nigeria Protein Deficiency Awareness Campaign. Protein Challenge is a protein-pull media campaign supported by the United States Soybean Export Council (USSEC) and other partners in the country. It seeks, among other things, to create awareness about the prevalence, status and impact of protein deficiency in Nigeria.

The keynote speaker at the webinar, Dr Omadeli Boyo, a medical director and public health expert stated: “We need to sensitise our communities on the importance of protein consumption, taking into cognisance the knowledge, attitude and practices of the various ethnic groups.” He added that there is an urgent need to ensure that healthy food is made affordable and available to all Nigerians, to alleviate protein deficiency.

He remarked that most Nigerian families can hardly afford foods with high nutritional value, compelling them to feed mostly on starchy foods which are very high in carbohydrates. They are also often cheaper.

The truth is that notwithstanding the situation in Nigeria, there are solutions to the issues of food bias, food insecurity and malnutrition in the country.

Creating awareness of malnutrition and protein deficiency is the obvious first step. People need to be aware that eating a daily diet of only starchy foods or processed foods is unhealthy. As the Chinese proverb says, “whatever was the father of a disease, a poor diet was the mother.”

As Dr Boyo noted, sensitisation and education on the benefits of protein will play a key role in communities embracing healthy food cultures. Setting up policies to encourage diverse ethnic groups to eat fruits, and protein-rich foods will certainly help in dispelling certain food myths. Culture is learned, it can also be unlearned, although the process would have to be gradual.

Also speaking at the webinar, Ezekiel Ibrahim, President, Poultry Association of Nigeria (PAN), noted that agriculture is the cornerstone to proper nutrition, so the country must pay closer and more serious attention to it.

He revealed that some of the challenges poultry farmers face is both cultural and economic. These include limited access to quality seeds, trial and error farm method, poor funding of agricultural research institutes, weak value chain and the dearth of reliable data and statistics for planning purposes.

The issue is clear. We must change how we do things to change the narrative around malnutrition and protein deficiency in the country. All key stakeholders in the agricultural, health, food and nutrition space must advise the government on the need to ensure adequate food security for all people across the board.

Truly, it is only through embracing a healthy food culture that Nigeria, with its large and quickly expanding urban population, can begin to experience rapid changes in food habits. With proper dissemination of information, sensitisation and education, Nigerians will begin to actively seek and adopt a protein-rich diet. This will be a desirable cultural shift.

Besides, as people become more conscious of the need for a healthy lifestyle, they can explore the rich repository of unique local nutrient-rich foods. The government and indeed every relevant stakeholder must join hands to ensure that nutrient-rich foods are not only available but also affordable.

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