Bank Customers Lost N2bn to e-Fraud in 2016

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06/08/2017

The Central Bank of Nigeria (CBN) says that bank customers in Nigeria lost over n2 billion to e-fraud in 2016 while it has identified e-fraud as the biggest challenge facing the electronic payment system in the country.

Mr. Dipo Fatokun, the CBN Director, Banking & Payments System said in Lagos, that fraud not only leads to loss of funds, but reduces confidence of customers using e-channels.

Fatokun, who spoke at the Finance Correspondents Association of Nigeria (FICAN) Bi-Monthly Forum said e-fraud has never been completely eliminated yet in Nigeria

Speaking on the theme: “Electronic Payments Industry’s Performance and Regulatory Issues”, Fatokun described e-payment as any form of payment that allows the use of electronics system to initiate, authorize and confirm the transfer of money between two parties.

“Banks, Payment Service Providers(PSPs), Financial Authorities and Central Banks play various roles in developing the payments system infrastructure to drive electronic payments, that is nationally utilised. The e– payments industry refers to all stakeholders, operators, regulators, infrastructures, merchants, retailers and the final consumers of the payments products and services. Payment technologies and platforms bind the industry together in a tight ecosystem,” he said.

Fatokun disclosed that global non-cash (electronic payment) transaction volumes grew at 8.9 per cent to reach $387.3 billion in 2014, an increase, driven by accelerated growth in developing markets.

“Cards have been the fastest growing payments instrument since 2010, as cheque use has declined consistently and significantly. Debit cards accounted for the highest share (45.7 per cent) of global e-payment transactions and were also the fastest growing (12.8 per cent) payments instrument in 2014,” he said.

According to him, global non-cash volumes are estimated to have grown by 10.1 per cent to reach $426.3 billion in 2015, aided by high growth in emerging economies across the world, including Africa even as the Nigerian e-payments industry has been evolving in line with the evolution in global payments in both Wholesale and Retail systems.

“Banks, PSPs, and the CBN have played various roles in developing the payments system and creating products and channels for electronic payments. The Retail Payments Transformation Programme of the CBN has led to the introduction of various electronic payments products and services by operators in the industry. The electronic products are gradually reducing the usage of cheques and cash, as noticed consistently in the annual performance report since the inception of the Cash-less Policy in 2012,” he said.

He said the volume and value of transactions based on cheques and National Electronic Funds Transfer (NEFT) have been consistently reducing annually since 2013, while same data for the Nigeria Interbank Settlement System- NIBSS Instant Payment (NIP), Automated Teller Machine (ATM), and mobile money channels have been on the increase. This is an indication of users’ preference for instant value channels over non-instant payment channels.

“The ATM Channel accounts for the highest volume of transactions, while the NIP accounts for the highest value of transactions annually. This is because the ATM is usually the e-payment channel that new and lower value account holders always interface with, while corporates and upwardly mobile middle class customers make transfers using NIP,” he said.

According to Fatokun “regulation is necessary to ensure that operators focus on delivering products and services that enable compliance, efficiency, financial stability and a positive customer experience. The attempt to regulate electronic payments in Nigeria started with the CBN Electronic Banking Guidelines, issued in August 2003.

NCC, CBN to Tighten SIM Card Swap Process

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06/08/2017

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The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) would soon come up with regulations to tighten the process of Subscriber Identification Module (SIM) card swap for telecom subscribers.

Mr. Dipo Fatokun, the Director, Banking and Payments System at the CBN explained:

“Some of the fraud we are still battling with is the issue of SIM swap. We have heard of instances where people would say for three days my phone did not work. And because many of us carry more than one phone, if one is not working, at least one will work.

So, what they do is that they swap your phone. That is, they just walk up to a service provider and claim to be the owner of the line. Most often, they have studied that number and they have collaborators, probably in the bank.

And because the process for doing a change of SIM card is so loose, the telcom company would change the SIM card for the person and so he assumes the phone number.

“What does he do? He puts the SIM card in another phone and start using the USSD to make transfers out of the account into another account. So, we are working with the NCC to tighten the process of SIM card swap. It may include biometrics and a unique number may be required.

In Nigeria, we have consistently over the last three years reduced the value of electronic fraud. The game changer is the Bank Verification Number (BVN). It is not only helping us to identify who owns what, but going forward, just as it was announced by the Bankers’ Committee at the last meeting, the BVN would be used as an instrument to track fraudsters in the system.

When electronic fraud happens, money is moved from one account to another account. That other account that money is moved to, the owner can be identified. And when such owners can be identified, they can be blacklisted or watch listed.

It means that fraudsters can be identified and if possible taken out of the system. So, the BVN is going to be a game changer in the respect. We are working on the final framework and when it is concluded, it would be issued to the industry.

Electronics payment is any form of payment where an electronics system is used to initiate authorise and confirm the transfer of money between two parties. This could be for various reasons, such as payment for goods and services, settlement of obligations, gifts, among others.

Electronics payments are enabled by a network of interconnected systems, which make it possible for exchanges of value between payer and payee, sender and receivers or donor and done.”

Ilori Appointed DG of NIA

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06/08/2017

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The Governing Council of the Nigerian Insurers Association (NIA) has approved the appointment of Mrs. Yetunde Olubunmi Ilori as the substantive Director-General of the Association.

She replaces Mr. Olorundare Sunday Thomas who was appointed Deputy Commissioner for Insurance (Technical) at the National Insurance Commission in April this year.

Until her appointment, Mrs. Ilori was the Chief Executive Officer of Axa Mansard Insurance Plc

Mrs. Ilori has over 32 years experience in the insurance industry and is expected to bring to the Association her industry wide experience which has seen her take up many active roles and appointments during these past years.

A 1984 graduate of Actuarial Science from the University of Lagos, the newly appointed DG/CEO is also a Fellow of the Chartered Insurance Institute of Nigeria and an Associate of the Chartered Insurance Institute, London.

An alumnus of the Advance Management Programme of the prestigious Lagos Business School, she has served the insurance industry in Nigeria and the African continent in many capacities.

She represents Nigeria insurance industry on the African Insurance Organization Life Committee (AIO). She is the Chairperson of AIO Life Committee which has the sole mandate of building capacity in the area of insurance and pensions across Africa.

She was also the Chairperson of the Life Offices Committee of the Nigerian Insurers Association from 2004 to 2012 and Chairperson of the Governing Council Advisory Committee on Life Insurance with a mandate to provide guidance to stakeholders on key strategic issues and decisions within and outside the insurance industry on life assurance and annuity related matters.

Ilori was the chairperson of the 2016 National Insurance Conference Planning Committee which was adjudged as highly successful in all ramifications.

Prior to her appointment, she was the Deputy Chairman of the Nigerian Insurers Association and represents the insurance industry in inter and intra regulatory negotiations. She also represents the Association in its interface with other stakeholders within the insurance industry.

She is a Council member of the Chartered Insurance Institute of Nigeria where she serves in four committees and a member, Governing Board of the College of Insurance and Financial Management; she is the Chairman, Academic Committee and Lecturer at the College.

Ilori is also a member of the Professional Insurance Ladies Association (PILA). She has attended many courses/conferences both locally and internationally.

IATA: African Airlines Record 9.9% Traffic Rise in June

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06/08/2017

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The International Air Transport Association (IATA) announced global passenger traffic data for June showing that demand (measured in total revenue passenger kilometers or RPKs) rose by 7.8% compared to the year-ago period. This was in line with the 7.7% growth recorded in May.

All regions reported growth. June capacity (available seat kilometers or ASKs) increased by 6.5%, and load factor rose 1.0 percentage point to 81.9%.

For the first six months of 2017, the industry experienced a 12-year high in traffic growth (7.9%) and a record first half load factor of 80.7%.

“A brighter economic picture and lower airfares are keeping demand for travel strong. But as costs rise, this stimulus of lower fares is likely to fade. And uncertainties such as Brexit need to be watched carefully. Nonetheless, we still expect 2017 to see above-trend growth,” said Alexandre de Juniac, IATA’s Director General and CEO.

June 2017 (% year-on-year)	World share¹	RPK	ASK	PLF (%-pt)²	PLF (level)³
Total Market	100.0%	7.8%	6.5%	1.0%	81.9%
Africa	2.2%	9.2%	6.6%	1.6%	64.8%
Asia Pacific	32.8%	11.6%	9.4%	1.6%	80.9%
Europe	26.5%	8.8%	6.7%	1.7%	85.4%
Latin America	5.2%	6.7%	5.2%	1.2%	81.6%
Middle East	9.6%	2.1%	3.3%	-0.8%	68.8%
North America	23.7%	4.0%	4.1%	0.0%	86.3%

¹% of industry RPKs in 2016 ²Year-on-year change in load factor ³Load factor level

International Passenger Markets

June international passenger demand rose 7.5% compared to June 2016. All regions recorded growth, led by airlines in Africa. Capacity climbed 6.2%, and load factor climbed 1.0 percentage point to 80.6%.

Asia-Pacific airlines’ June traffic jumped 9.1% compared to the year-ago period. Capacity rose 7.9% and load factor edged up 0.9 percentage points to 79.3%.The overall upward trend in seasonally-adjusted traffic remains strong, although volumes have slipped in recent months. Traffic on Asia-Europe routes continues to trend upwards following terrorism related disruptions in early 2016. However, solid demand growth on international routes within Asia has paused.

European carriers saw traffic rise 8.8% in June compared to June 2016, which was up from a 7.5% year-over-year increase recorded in May. Capacity climbed 6.5% and load factor rose 1.8% percentage points to 85.9%, highest among the regions. The stronger growth reflects both a favorable comparison with the year-ago period, as well as increased momentum in the regional economic backdrop.

Middle Eastern carriers posted a 2.5% traffic increase in June, which was a slowdown from the already subdued 3.7% growth seen in May. Capacity rose 3.1%, and load factor slipped down 0.4 percentage points to 68.9%. While most markets have seen demand slowing, it is most visible on the Middle East-North America market, which has been affected by a combination of factors including the (recently-lifted) ban on personal electronic devices, as well as a wider negative stimulation from the travel ban that has now been implemented for certain countries. However, passenger traffic between the Middle East and North America was already slowing in early 2017, in line with a moderation in the pace of growth of the largest carriers in the region.

North American airlines’ demand rose 4.4% compared to June a year ago. Capacity climbed 4.1%, with load factor inching up 0.3 percentage points to 84.5%. The comparatively robust economic backdrop in North America is expected to continue to support outbound passenger demand. However, anecdotal evidence suggests that inbound tourism is being deterred by the additional security measures in place for travel to the US.

Latin American airlines experienced a 9.7% rise in demand compared to the same month last year supported by strong travel within the region, while travel to North America is flat to down slightly. Capacity increased by 9.1% and load factor rose 0.4 percentage points to 82.1%.

African airlines’ traffic soared 9.9% in June. Capacity rose 7.1%, and load factor jumped 1.7 percentage points to 64.3%, although this still was the lowest among regions. Conditions in the region’s two largest economies have continued to diverge, with business confidence in Nigeria rising sharply in recent months, while South Africa’s economy fell into recession in the first quarter.

‘Africa Poised to Become Digital Insurance Leader’

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06/08/2017

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Mr. Oliver Bäte, CEO of Allianz SE opened the 44^th annual Insurance Conference in Sun City, South Africa, with a keynote address on that addressed the profound transformation of the insurance industry wrought by digitalisation.

“In today’s fast changing world, it’s critical to innovate quickly and to change course rapidly if necessary. The insurance industry, like other customer service industries, is transforming because of the all-encompassing impact of digitalisation on our lives. Customers have new expectations, a growing number of disruptors are taking the stage and new megatrends, such as artificial intelligence (AI), voice-based smart assistants (i.e. ‘Alexa’), telematics, wearables and drones are fundamentally changing the traditional insurance model.”

“We are completely rethinking the way we serve our customers, not least because of the competition posed by disruptors from the fin-/insuretech space, who have an impressive facility with mobile technology and analytics. Today’s customers will choose a product primarily because it’s easy to use, transparent in terms of price and quality, and personalized – and because it’s available to them via the digital channels they want it from.”

“Digital Comes Naturally to African Customers”

“While traditional markets, such as Europe, are struggling with their digital transformation process, Africa is digital by nature. Mobile is the fastest growing sector and innovation enabler on the continent with an expected 1.2 billion African subscribers by 2018.”

“By leveraging the internet and mobile penetration, African countries can leapfrog innovation. African customers will rightfully demand and drive insurance innovation in Africa as they expect offerings and channels to be fully digitalised. This, and the fact that rules and regulations are favorable for innovation in financial services, puts Africa in a great position to become the digital insurance leader of the future.”

A ‘Single Digital Agenda’ to Meet Disruption

To transform Allianz into a truly customer-centric, ‘digital by default’ company, the Group established a Single Digital Agenda. Allianz is spending over €700 million ($800 million) annually on shaping and orchestrating the digitalisation of its 127-year-old business.

The ‘Single Digital Agenda’ is a portfolio of change initiatives built on five pillars, the cornerstone being the Allianz ‘Global Digital Factory’, a place where experts from all parts of the company rethink customer journeys from our various business segments and make them globally scalable. The second is ‘Global Digital Partnerships’ to foster collaboration with tech and sharing economy companies. The third is ‘Digital Pure Play’, the conception of 100% digital insurance and assistance offerings. The fourth is ‘Advanced Business Analytics’ with the aim to increase customer satisfaction and the effectiveness of the business. And the fifth is ‘Allianz X’, a fund and incubator, for which the company has set aside €430 million ($500 million) over the next four years. The fund invests in promising start-ups that are part of ecosystems relevant to the business, such as connected property, connected mobility, health, asset and wealth management.

In Africa, where the Group is already present in 16 countries ^[i], Allianz will focus its digital activities on increasing customer reach in key growing markets, where insurance penetration is still low, and efficiency in markets with higher penetration.

“Insurance companies have much to offer to the African economy. Digitalisation allows us to gain considerably better insights into our individual and institutional customers and thereby to better serve their needs. We believe deeply in Africa’s huge long-term growth potential and we will leverage our global footprint and extensive expertise to strengthen our market position and to attract African talent,” Bäte said in closing.

Leadway Assurance Mobile Office to Deepen Penetration

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02/08/2017

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Capture — L-R: Head of Commercial, Leadway Assurance Co. Ltd, Mr. Gboyega Lesi; Divisional Director/Head Life Commercial, Leadway Assurance Co. Ltd, Mr. Adebayo Okuwobi; Executive Director, Leadway Assurance Co. Ltd, Mr. Tunde Hassan-Odukale; Executive Director, Leadway Assurance Co. Ltd, Ms. Adetola Adegbayi; Head of Business Development, Leadway Pensure PFA, Mr. Osaghae Osarhieme and Head of Human Resources Department, Mrs. Kunbi Adeoti during the official launch of the Leadway Assurance Mobile Office in Lagos.

Leadway Assurance Company Limited has launched its mobile office designed to create more awareness and deepen penetration of insurance services in the country.

Ms. Adetola Adegbayi, Executive Director, Leadway Assurance, said the mobile office initiative is important in order to get the insuring public to fully understand what insurance is all about. She said insurance is buying of risks from customers while the policy serves as evidence of the risk bought off the customer by an insurance firm.

Adegbayi maintained that the mobile office caravan will move into various neighbourhoods to spread the message of insurance and purchase risks from existing and potential customers.

“The protection gap in Nigeria is still very low because many people do not purchase insurance services for a variety of reasons. We hope to get more people into the protection net through the mobile office because public perception is important to us in the insurance market.”

The Leadway Assurance ED added that the mobile office caravan is to educate, make aware and ensure access to insurance services, as well as a research tool to determine where to open a new branch.

“The Leadway Assurance Mobile Office is about making insurance accessible to the people. It will reach people where they live and educate them on the need to have insurance protection. It is our contribution towards deepening insurance penetration in Nigeria.”

L-R: Head of Commercial, Leadway Assurance Co. Ltd, Mr. Gboyega Lesi; Divisional Director/Head Life Commercial, Leadway Assurance Co. Ltd, Mr. Adebayo Okuwobi; Executive Director, Leadway Assurance Co. Ltd, Mr. Tunde Hassan-Odukale; Executive Director, Leadway Assurance Co. Ltd, Ms. Adetola Adegbayi; Head of Business Development, Leadway Pensure PFA, Mr. Osaghae Osarhieme and Head of Human Resources Department, Mrs. Kunbi Adeoti during the official launch of the Leadway Assurance Mobile Office in Lagos.

Adegbayi said further: “As market leaders in the Nigerian Insurance industry, we have taken it upon ourselves to fulfill the task of reducing the financial protection gap within the country, which in turn increases on the low insurance penetration rate in Nigeria. We have elected to bring risk protection and insurance education closer to the man on the street in Nigeria. The launch of this state-of-the-art Mobile Office is a testament to the execution of this goal. Our objective goes beyond sales; we intend to reverse the negative perception many Nigerians have of the insurance industry.

“With the huge potential of the insurance industry to positively impact our economy by safeguarding the enormous risks within the entire business ecosystem, and by creating wealth through investments, the industry is still way behind other financial and service sectors, contributing about 0.3% to the Nigerian Gross Domestic Product (GDP).

“Notwithstanding a population of over 180million people about a third of which are within the insurable class, Nigeria is said to have about 5 million registered policyholders. This lack of density shows how largely untapped the Nigerian market is and the huge opportunities available to increase insurance uptake and the number of policyholders nationwide.”

Abass Resigns as ntel CEO

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02/08/2017

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Mr. Kamar Abass has resigned as chief executive of ntel due to unresolved differences with the Board of the company in respect of certain operational issues.

The company has already appointed Mr. Ehiagwina, the Head of Finance as interim ceo.

Abass, who was the pioneer chief executive of ntel was formerly the chief executive of LM Ericsson Nigeria.

NEXIM, Indonesia Eximbank to Enhance Co-operation

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01/08/2017

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“With the signing of the MoU with Indonesia Eximbank, we hope to strengthen our existing bilateral relationship through increased technical assistance, promotion of non-oil export trade and other economic activities between Nigeria and Indonesia towards supporting our Government’s efforts to diversify the economy.” – Abba Bello

The Indonesia Eximbank has signed an Memorandum of Understanding (MoU) with the Nigerian Export-Import Bank (NEXIM Bank) expressing intention to enhance co-operation and forge stronger relationships in promoting regional and global trade and investment between Indonesia and Nigeria.

The MoU intends to foster trade, technical assistance, experience and information sharing, including other investment relations in a way that would promote financing, guarantees, insurance and counter trade instruments to increase transactions between Indonesia and Nigeria.

In his welcome remarks, Mr. Abba Bello informed the Indonesia Eximbank team that NEXIM Bank was established by Act 38 of 1991 as an Export Credit Agency with the broad mandate of promoting the diversification of the Nigerian economy and deepening the external sector, particularly the non-oil export sector.

The Bank pursues this through the provision of credit facilities in both local and foreign currencies; risk-bearing facilities through export credit guarantee & export credit insurance as well as business development and financial advisory services etc.

L – R: Mr Abba Bello, MD/CEO, NEXIM Bank; and Mr. Dwi Wahyudi, MD, Indonesia Eximbank at the NEXIM Bank Headquarters, Abuja exchanging copies of the signed MoU.

Presently, the Bank’s current strategic initiatives are geared towards boosting job creation and foreign exchange earnings in the Manufacturing, Agro-processing, Solid Minerals and Services (MASS) sectors in alignment with the efforts of the federal government to diversify the economy, create jobs and increase both the value and sources of foreign exchange earnings in the country.

Bello expressed his delight that both Banks were able to quickly come to terms on the Articles of the MoU considering the brevity of time spent in the negotiations, which shows strong commitment on both sides to work towards a more mutually beneficial relationship.

Furthermore, the NEXIM MD indicated that by virtue of both banks’ membership of the Global Network of Eximbanks and Development Finance Institutions (DFIs) G-NEXID, he hopes that the intentions expressed in the MoU would be much easier to pursue. NEXIM Bank has been the honourary president of G-NEXID since May 2015.

In his response, the Managing Director of Indonesia Eximbank, Mr. Dwi Wahyudi expressed his satisfaction that the two institutions have established a viable intention to forge strong collaborative relationship as signalled by the MoU.

He disclosed that the Indonesia Eximbank was incorporated by virtue of Law Number 2/2009, as an export credit institution that provides export financing in the form of security, insurance and consultation services.

Like NEXIM, the Indonesian Eximbank supports its Government’s economic development aspirations by providing financing for (a) businesses that are into production of goods and services for export; (b) viable projects that are not attractive to commercial banks but have the prospects to increase the national export base; and (c) providing assistance to overcome the obstacles facing banks or other financial institutions in providing financing for exporters through various export credit instruments.

Wahyudi is hopeful that the MoU signed with NEXIM Bank would spur meaningful bilateral cooperation between the two countries for the promotion of the intentions expressed in the Articles. This becomes more germane given the readiness of the Government of Indonesia to enhance mutually beneficial economic relations with Nigeria as indicated during the official visit of the Minister for Foreign Affairs of the Republic of Indonesia, Mrs. Retno Marsudi in June this year.

Bello assured his Indonesian counterpart that NEXIM would do all within its mandate in regard to the intentions expressed in the document. Concluding, he expressed his hope that the MoU will strengthen Nigeria’s existing bilateral relations with Indonesia through increased technical assistance, promotion of non-oil export trade and other economic activities and thereby provide more support to the Government’s efforts to diversify the economy.

The Memorandum of Understanding between Indonesia Eximbank and NEXIM Bank is strictly limited to the expressed desires of the parties to enhance cooperation in respect of the matters set out in the document. It is not intended to impose or create any legally binding rights or obligations on the parties.

About NEXIM Bank – The Nigerian Export-Import Bank was established by Act 38 of 1991 as an Export Credit Agency with the broad mandate of promoting the diversification of the Nigerian economy and deepening the external sector, particularly the non-oil export sector through the provision of credit facilities in both local and foreign currencies; risk-bearing facilities through export credit guarantee & export credit insurance as well as business development and financial advisory services etc.

In pursuit of its mandate of promoting export diversification and deepening the non-oil export sector, the Bank’s current strategic initiatives are targeted towards boosting employment creation and foreign exchange earnings in the Manufacturing, Agro-processing, Solid Minerals and Services (Tourism, Transportation and Entertainment) (MASS) sectors. The Bank embraces the exchange of information on best practices in trade and project finance as an important value addition to its operations.

Mobile Broadband to Reach 4.3bn Globally in 2017

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01/08/2017

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The new 2017 edition of ITU’s ICT Facts and Figures reveals that mobile broadband subscriptions have grown more than 20 per cent annually in the last five years and are expected to reach 4.3 billion globally by the end of 2017.

Between 2012 and 2017, LDCs saw the highest growth-rate of mobile broadband subscriptions. Despite this, the number of mobile subscriptions per 100 inhabitants in LDCs is the lowest globally at 23 per cent.

The number of fixed-broadband subscriptions has increased by 9 per cent annually in the last five years with up to 330 million subscriptions added.

There has been an increase in high-speed fixed broadband subscriptions parallel to the growth in the number of fibre connections. Most of the increase in high-speed fixed broadband subscriptions in developing countries can be attributed to China, which accounts for 80 per cent of all fixed-broadband subscriptions at 10 Mbit/s or above in the developing world.

Mobile broadband is more affordable than fixed broadband

Mobile broadband prices, as a percentage of gross national income per capita, dropped by half between 2013 and 2016.

Mobile broadband is more affordable than fixed broadband in most developing countries.

Digital gender divide

While the Internet user gender gap has narrowed in most regions since 2013, the proportion of men using the Internet remains slightly higher than the proportion of women using the Internet in two-thirds of countries worldwide. In 2017, the global Internet penetration rate for men stands at 50.9 per cent compared to 44.9 percent for women.

In the Americas, the number of women using the Internet is higher than that of men.

International bandwidth and telecommunication revenues

International Internet bandwidth grew by 32 per cent between 2015 and 2016, with Africa registering an increase of 72 per cent during this period, the highest of all regions.

Global telecommunication revenues declined by 4 per cent from $2.0trillion in 2014 to $1.9trillion in 2015. Developing countries, which are home to 83 per cent of the global population, generate 39 per cent of the world’s telecommunication revenues.

ICTs for the SDGs

ITU’s ICT Facts and Figures demonstrates that ICTs continue to play an increasingly critical role in achieving the global Sustainable Development Goals (SDGs).

“ICTs continue to be a key enabler of economic and social development, bridging the digital divide and fostering an inclusive digital economy,” ITU Telecommunication Development Bureau Director Brahima Sanou. “I am confident that the discussions at World Telecommunication Development Conference 2017 will contribute to the fast-forwarding of countries towards attainment of the SDGs.”

NIA Names Tope Smart as Deputy Chairman

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01/08/2017

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Mr. Tope Smart, Group Managing Director/CEO, NEM Insurance Plc is now Deputy Chairman of the Nigerian Insurers Association (NIA). The NIA also appointed Mrs. Yetunde llori as Director-General.

Mr. Eddie Efekoha, Chairman of NIA said the high-profile appointments will strengthen the capacity of the Association to deliver on its core mandate and move the market forever.

Efekoha said the industry has successfully uploaded 4.4 million vehicles in the motor insurance database, saying that he believes that the 4.4 million vehicles have genuine insurance cover.

World Bank, ITU Launch Global Financial Inclusion Initiative

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01/08/2017

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A new global programme to advance research in digital finance and accelerate digital financial inclusion in developing countries, the Financial Inclusion Global Initiative, has been launched by the World Bank Group, the International Telecommunication Union (ITU) and the Committee on Payments and Market Infrastructures (CPMI), with support from the Bill & Melinda Gates Foundation.

The three-year programme focuses on three different “model” developing countries – China, Egypt and Mexico – and consists of two complementary operational and knowledge work streams.

The operational work stream supports each country’s national authority – countries in which digital financial inclusion can significantly improve access to financial services for a large number of people without access to financial services.

The knowledge work stream is designed to advance research and develop policy recommendations in three key areas of digital finance: security of information and communication technology (ICT) infrastructure and trust in digital financial services; digital IDs for financial services; and acceptance and use of e-payments by micro and small-scale merchants and their customers.

The inter-agency working groups tackling these issues will share findings at annual symposia. The first of these is scheduled to be the Financial Inclusion Global Initiative Symposium 2017, will be held in Bangalore, India, from 29 November to 1 December 2017, hosted by the Government of India.

“We are excited to work with ITU and CPMI on this new global initiative that will enable our partner countries to better harness the potential of digital technologies for financial inclusion, and to manage associated risks,” said Ceyla Pazarbasioglu, Senior Director for the Finance and Markets Global Practice, World Bank Group.

As part of the initiative, the three model countries are also receiving technical assistance from the World Bank Group with a view to putting into practice the guiding principles set out by the CPMI-WBG report on Payment Aspects of Financial Inclusion (PAFI). In particular, the assistance will contribute to further strengthening public and private-sector commitment and improving legal and regulatory frameworks, financial markets and ICT infrastructure for financial access and inclusion. It will also focus on improving financial product design; financial literacy and awareness; diversified access points; and large-volume, recurring payment streams. The World Bank Group leads the operational work, with ITU handling activities related to telecommunications authorities.

“An estimated two billion adults are still without access to a bank account, and yet some 1.6 billion of them have access to a mobile phone, creating the potential for e-finance access,” said ITU Secretary-General Houlin Zhao. “The ITU community is excited to leverage our unique technical expertise to make e-finance a reality for millions of people through the Financial Inclusion Global Initiative, and in so doing, contribute to poverty eradication and the achievement of the global Sustainable Development Goals.”

“The Bill & Melinda Gates Foundation is pleased to support the Financial Inclusion Global Initiative, which we believe will bring digital financial services to some of the world’s most vulnerable unbanked populations as well as advance knowledge on creating a robust digital payments ecosystem,” said Jason Lamb, Deputy Director, Bill & Melinda Gates Foundation.

The three countries selected were chosen based on potential for country programmes, level of national government and private-sector commitment to financial inclusion, number of people that could be reached through digital financial services, and potential for reforms to encourage innovation and digital technologies use.

According to analyses carried out by the World Bank Group, Egypt has the potential to bring a large number of people into the formal financial sector (more than 44 million adults). These analyses found that Egypt has adequate laws, regulations and financial and ICT infrastructure, but a lack of funding to cover related reforms.

Considered a ‘last-mile’ challenge, China has an increasingly well-developed legal and regulatory environment and financial infrastructure, as well as a supportive ICT infrastructure. The People’s Bank of China has requested support from the World Bank Group for digital financial inclusion measures to reach rural people without access to financial services.

Mexico has shown a strong commitment to financial inclusion with its new National Financial Inclusion Strategy launched in June 2016, as well as a draft fintech law. Mexico has the potential to become a regional and global model for digital financial inclusion, despite relatively low levels of financial inclusion.

China, Egypt and Mexico are already part of the Universal Financial Access 2020 (UFA2020) initiative. Led by the World Bank Group, this seeks to bring two billion unbanked adults in 25 countries into formal financial systems.

The design of country programmes under the Financial Inclusion Global Initiative will be informed by the same guiding principles of UFA2020 – the PAFI guiding principles – as well as the Level One guidelines for enabling payments infrastructure, and the recommendations of the ITU-T Focus Group Digital Financial Services.

The Financial Inclusion Global Initiative is supported by the Bill & Melinda Gates Foundation through a US$ 12,238,635 grant. This will be used to fund country-level implementation led by the World Bank Group, the organisation of the initiative’s annual symposia by ITU, and the activities of the initiative’s established working groups.

Niger Insurance Reports N22bn Asset Base

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01/08/2017

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Mr. Kolapo Adedeji, Managing Director/CEO, Niger Insurance Plc says the company’s asset base has increased to N22 billion from N20. 4 billion, thereby giving the insurer stronger operating opportunity in the insurance market.

Adedeji said the company has taken wide-ranging strategic measures to strengthen its position in the industry such as integrated marketing approach based on segmentation, business development cum research in terms of product portfolio and deployment of Information & Communications Technology (ICT) tools to create value for policyholders.

Kola Adedeji, MD/CEO, Niger Insurance Plc

“Despite the uncertainties surrounding the socio and macro-economic environment, my strong confidence and reliability on our diversified product portfolio and robust asset base remain undeterred. I also have confidence on the quality of our management team and the support of our stakeholders that gives us strength and resilience to navigate the storms of uncertainty in our operations.”

‘9Mobile Has Bleak Future’

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31/07/2017

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A telecom analyst has predicted bleak future for 9Mobile, formerly Etisalat Nigeria, due to its $1.2 billion indebtedness to a consortium of banks.

The analyst, who insisted on anonymity, told Business Journal in Lagos that the huge debt burden will make it practically impossible for the telecom firm to operate optimally, let alone generate sustainable profit going forward.

“The prospect of 9Mobile surviving in the cut-throat Nigerian telecom market is very slim. With a debt burden of such magnitude, the future of the company is doomed. The idea of the company looking for fresh investors is unrealistic because no rational investor will dare dive into the current mess called 9Mobile. Its future is simply bleak.”

He argued that with 13 creditor banks involved in the current ownership structure of the company, the decision-making process has become extremely unwieldy and chaotic.

“Despite the optimism of name change from Etisalat to 9Mobile, the reality is that the company does not have the financial and market capacity to pay back the $1.2 billion loan hanging on its neck in the near term. As a small operator in the market, the possibility of generating sizeable revenue in the short and medium term to offset the facility is doubtful.”

He insisted that the story making the rounds of certain firms lining up to snap up the company is more of public relations than realistic investment commitment.

“Of course, certain corporate names have been bandied about in the media but the truth remains that 9Mobile is not a worthy investment for now.”

Leadway Assurance, Leadway Pensure Partner Nollywood on Insurance/Pension

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Business Journal

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31/07/2017

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Leadway Assurance Company Limited; Leadway Pensure PFA and Pinewood Medicare have signed a partnership agreement with 13 recognised affiliates of the Nollywood Creative Sector Industry for the provision of an insurance scheme, tagged NollyHealth Insured, for their members.

The Memorandum of Understanding (MoU) was signed on Thursday, July 13, 2017, at the NAN Media Centre, National Theatre Complex in Iganmu, Lagos, Nigeria.

Under the partnership, registered members of the following bodies in the Nigerian creative industry – Association of Motion Picture Entertainment Editors of Nigeria (AMPEEN); Creative Designers’ Guild of Nigeria (CDGN); Cinematographers’ Society of Nigeria (CSN); Directors Guild of Nigeria (DGN); Film & Video Producers’ and Marketers’ Association of Nigeria (FVPMAN); Independent Television Producers Association (ITPAN); Motion Picture Practitioners Association of Nigeria (MOPPAN); National Association of Nigerian Theatre Arts Practitioners (NANTAP); Screenwriters’ Guild of Nigeria (SWGN); Theatre Arts and Motion Pictures Producers Association of Nigeria (TAMPAN) and United Movie Practitioners’ Association of Nigeria (UMPAN) will enjoy a unified general insurance, healthcare, pension coverage and other listed benefits.

On its part, Leadway Assurance Company Limited will provide a life/general insurance policy for practitioners covering the following: Group Personal Accident Insurance which provides compensation to members/affiliates of the group in the event of accidental bodily injury to the insured person(s) that may result to death or disablement; Group Life Cover for the beneficiary of a member who passes away while in Service and Business Protection Insurance (Creative Art Production Insurance) under which is Cast & Crew Insurance, Fire & Burglary on Directors & Crew’s Personal Property, Miscellaneous Equipment (All Risks), Public liability insurance and Theft or Loss of money on a filming location.

L-R: Executive Director, Leadway Pensure PFA, Mr. Olusakin Ladeodan; Director, Administration and Human Resources, Lagos State Ministry Of Tourism, Art and Culture, Mrs Olubisola Olunloyo; Managing Director, Nigerian Film Corporation, Dr. Chidia Maduekwe; Executive Director, Leadway Assurance Company Limited, Miss Adetola Adegbayi and MD/CEO Pinewood Medicare, Dr. Olasimbo Davidson at the formal launch of Nolly Health Insured and MoU signing in Lagos.

On the other hand, its subsidiary company Leadway Pensure PFA would cater for the pension funds of members, while Pinewood Medicare HMO would serve as a healthcare service provider for the members of the aforementioned interest groups operating within the Nollywood ecosystem.

Speaking at the event, Executive Director, Leadway Assurance Company Limited, Ms. Adetola Adegbayi, stated that: “Nollywood as at 2014 contributed to the tune of $6.6bn for the Nigerian GDP, and sadly there are situations where practitioners are forced out of how they make their living due to accidents and medical emergencies. We felt it was important that we provided reliable solutions to the problem and ensure we do our best to bridge the gaps that exist.

“This is why we have come together to create a platform that covers the basic needs of practitioners. The NollyInsured Scheme will cover group personal accidents, pension’s savings and group life insurance which is like leaving a legacy behind for families. This three-pronged approach will cover practitioners from a basic level.”

Speaking on the need to save for retirement, the Executive Director, Sales & Marketing Olusakin Labeodan stressed the need for the creative industry to key into the contributory pension scheme. He said there cannot be a better time to take on the scheme, especially considering how well the industry has done. He noted that the Nollyinsured initiative and MOU signing are a clear indication of good things to come

In his remarks, the President, Directors’ Guild of Nigeria (DGN), Mr. Fred Amata, who spoke on behalf of the creative industry said: “This is the first collective effort of the creative sector to seize the opportunity of the persuasive power of unified numbers in negotiating an advantage for the benefit of the larger sector. NollyInsured is a progressively inclusive initiative.”

Also commenting, MD/CEO Pinewood Medicare, Dr. Olasimbo Davidson stated: “The Nolly-care program is designed firstly to end healthcare inequalities that pertain to income differences, and secondly to end preventable deaths which often stem from high healthcare costs. Lastly the Nolly-care Program aims to significantly reduce poor health outcomes which are typically linked to low access to high end specialists and sub- specialist”.

The Minister of Information and Culture, Lai Mohammed, who was represented by the Managing Director, Nigerian Film Corporation, Dr. Chidia Maduekwe, assured Nollywood stakeholders of the Federal Government’s continual support towards the development of Nollywood insurance scheme which provides favourable healthcare conditions for practitioners.

Furthermore, Dr. Madueke said that the insurance scheme could not have come at a better time, especially in the face of the urgent medical challenges that has faced members of the film industry and that there was the urgent need for both stakeholders to discuss health insurance and health issues pertaining to Nollywood members.

Commending the scheme, Hon. Adebimpe Akinsola, Special Adviser and Acting Commisioner, Ministry of Tourism, Arts & Culture represented by Director Admin & Human Resources, Ministry of Tourism & Culture, Mrs Olubisola Olunloyo, said she is convinced that the accomplishment is worthy of emulation and that the numerous medical and economic advantages streaming from the initiative will further heighten the excellence of Lagos State.

Worldwide IT Spending to Rebound in Half Year 2017

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Business Journal

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31/07/2017

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Worldwide IT spending is expected to increase by 4.5% in 2017 in constant currency terms, a significant improvement on last year’s growth of 2.5%, with stronger upgrade cycles for infrastructure and mobile devices leading the improvement in the second half of the year.

According to the latest edition of the International Data Corporation (IDC) Worldwide Black Book, total IT spending this year will reach $2.1 trillion and is forecast to increase by another 4% in 2018 as positive momentum continues into next year. Including telecom services, which will increase by just over 2% in constant currency terms this year, the overall ICT market will reach $3.5 trillion in 2017.

Cloud Is Still Leading the Way

The strongest growth this year will come from infrastructure hardware, enterprise software, and mobile devices. With cloud service providers expected to accelerate their datacenter investments in order to keep pace with growing demand for cloud services, total server spending will increase by 4% this year and 5% in 2018. Enterprise spending on server and storage infrastructure will also pick up in the second half of 2017, driven by product refresh cycles. Meanwhile, demand for Infrastructure as a Service (IaaS) will remain robust, with spending set to exceed $25 billion this year and more than $50 billion by 2020.

Smartphone Sales Will Improve Compared to 2016

Last year saw a significant slowdown in the smartphone market, as increasing maturity and price competition affected many markets. Stronger growth is expected in the second half of 2017, as premium vendors launch significant new products while smartphone penetration and value continues to grow steadily in key emerging markets including China. Overall smartphone spending will increase by 7% this year to $439 billion, a big improvement on last year’s 1% growth.

“Cloud and mobile are still the big drivers for IT spending, despite the attention devoted to new technologies like augmented reality, artificial intelligence, and robotics,” said Stephen Minton, vice president, Customer Insights & Analysis. “New technologies will drive a larger share of market growth in the next 5-10 years, but the short term will also see a resurgence of growth in markets tied to 3rd Platform opportunities, including cloud services, mobility, and big data.”

Software Spending is Strong, Services Market is Stable

Software spending will increase by 7% this year to more than $471 billion in constant currency, driven by continued enterprise investment in big data and analytics alongside ongoing adoption of Software-as-a-Service (SaaS) and other key growth segments.

Meanwhile, IT services spending will post growth of 3% this year, led by project-oriented services. In telecom services, growth will still be driven by fixed and mobile data services while voice revenues continue to decline.

“While overall market momentum is set to improve, some technologies will continue to drag on industry growth in the near term,” said Minton. “High-end servers are expected to post another year of double-digit decline this year, while hardcopy peripheral spending will fall for the second year in a row. Overall tablet spending will also decline again, despite improving sales of hybrid and detachable models, while sales of traditional PCs and external storage systems will be broadly flat. This year will also see slowing growth for enterprise network equipment and traditional outsourcing services. For vendors still relying on 2nd Platform technologies for their revenue and growth, the market will remain challenging.”

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