The Bureau of Public Enterprises (BPE) says it is undertaking a diagnostic review of the media sector in general towards the commencement of preliminary activities for the partial commercialisation of the Nigerian Television Authority (NTA), the News Agency of Nigeria (NAN), the Federal Radio Corporation of Nigeria (FRCN) and the Nigerian Film Corporation (NFC).
“The reform of the media sector will open up and create a level playing field in the sector and ensure fair competition and operational efficiency”, Mr. Alex Okoh, BPE’s Director-General said.
He also said that “the essence of the proposed partial commercialisation programme is to institutionalise commercial principles in the operations of the four government owned entities thereby enabling them to operate optimally in a market-driven environment.”
Mr. Alex Okoh, DG, BPE
Okoh said the current initiatives of BPE are aimed at positively impacting the Nigerian economy in areas of power generation and supply, improvement in infrastructure, food security and human capital development leading to the overall economic growth of Nigeria.
Speaking at the Executive Session of the just concluded All Nigeria Editors Conference in Port Harcourt, Rivers State, the Director-General sought the co-operation of the media in achieving the initiatives.
These include the power sector recovery initiative, privatisation of the Afam Power plant, concessioning of Terminal “B” Warri Old Port, restructuring and capitalisation of Bank of Agriculture (BOA), and the partial commercialisation of 12 River Basin Development Authorities (RBDAs).
Others are partial commercialisation of Nigeria National Parks Service/ the concessionof three selected National Parks and the re-privatisation of the Yola Distribution Company (DISCO) through core investor sale.
The DG, who was represented by his Technical Assistant, Mr. Ademola Aofolaju, said the Bureau had from inception to date, successfully reformed a total of 142 public enterprises through various privatisation strategies.
These include: 63 by core investor sale; nine by Guided Liquidation; one sale to existing shareholders; five public offers and two Liquidations. The others are eight private placements; 41 concessions; two debt/equity swaps; and 11 sales of assets.
He said that the reform initiatives of the BPE across the various sectors of the economy have had significant impact on the Nigerian economy over the past years and they include the success stories like the National Pension Commission (PENCOM), the Economic and Financial Crimes Commission (EFCC), the Debt Management Office (DMO), Nigerian Electricity Regulatory Commission (NERC) and the liberalisation of the telecommunications industry.
In line with the federal government’s drive to ensure transparency in the public-private partnership (PPP) model it is deploying to finance critical infrastructure projects, the Infrastructure Concession Regulatory Commission (ICRC) at the weekend launched the first of its kind contract disclosure portal.
The acting Director-General of the ICRC, Engr. Chidi Izuwah, in a presentation at the event in Abuja, revealed that the World Bank and ICRC developed the dedicated web portal for the disclosure of all PPP contracts information by the government.
He said the portal would ensure timely disclosure of contract information from project initiation through to the implementation and hand-back phase of PPP projects to the government.
According to Izuwah, the disclosure exercise supports President Mohammadu Buhari’s effort of institutionalising transparency and accountability in the procurement of PPP projects in Nigeria.
He further pointed out that the onus for information generation and uploading on the web-based platform would be shared by ICRC, the contracting authority, and the private party to the contract.
“Information will be uploaded by the contracting authority and ICRC after redacting confidential information.
“The contracting authority will upload all information and documents in the web-based platform, so as to leave at least seven days within the given timelines for ICRC to validate and approve the information for public disclosure.
“The web portal will be dynamic in nature. More information is made available as the various projects progress. It will be a respiratory of information of current happenings and events regarding PPPs in Nigeria,” he explained.
Furthermore, the ICRC boss said the portal’s framework clearly shows the various elements for disclosure depending on the stage the project is in.
“However, the information provided is limited to the project title and type, government agency responsible, name of the private concessionaire (where selected), and duration of the concession for the projects.
“In recognition of this limitation the Commission Partnered with the World Bank to ensure adequate disclosure of PPP contract Information.
“The Commission in collaboration with the World Bank consulted with MDAs, Concessionaires, Financiers, Civil Society Organisations and relevant stakeholders towards the actualisation of this exercise,”Izuwah added.
Equities Open the Week Lower… NSE ASI down 0.4%
The Equities market opened the week on a negative note as the benchmark index contracted 0.4% to close at 35,361.52 points while the YTD gain retreated to 31.6%. Resultantly, investors lost N44.8bn as market capitalisation settled at N12.2tn.
The drag in today’s performance was majorly on account of losses recorded in NIGERIAN BREWERIES (-1.8%), UBA (-3.0%) and WAPCO (-2.9%). Similarly, activity level waned as volume and value traded plunged 44.3% and 62.8% to 107.1m units and N1.4bn respectively.
Industrial Goods Index Leads Sector Decliners
The Industrial Goods index led sector decliners with a 1.1% decrease owing to profit taking in WAPCO (-2.9%). The Consumer Goods index trailed with a loss of 0.8% as a result of declines in NIGERIAN BREWERIES (-1.8%) and NESTLE (-0.4%) while the Banking index fell 0.5% due to price deprecation in UBA (-3.0%) and GUARANTY (-0.3%). Contrarily, an uptick in TOTAL (+2.7%) buoyed the Oil & Gas index 0.3% northward while the Insurance index marginally climbed 0.1% on the back of gains in MANSARD (+0.5%). Investor Sentiment Stays Positive
Market breadth, a measure of investor sentiment, retreated to 1.2x from 1.5x recorded on Friday after 19 stocks advanced against 16 decliners. The top performers were FIDSON (+5.0%), AIRSERVICE (+5.0%) and CUSTODYINS (+4.9%) while the worst performers were SKYEBANK (-3.6%), NEIMETH (-3.2%) and UBA (-3.0%). Despite the profit-taking which dragged the market, we expect performance to turn positive before the end of the week as investors take position ahead of Q3:2017 company scorecards releases.
Babacar Ndiaye, the Bank Group’s fifth elected President, who served two terms between 1985 and 1995, passed away on July 13, 2017 in Senegal.
“Goodbye, Papa, farewell to the ambassador for Africa’s development, rest in peace.” In an intensely emotional tribute, the President of the African Development Bank (AfDB), Adesina Akinwumi, opened a ceremony honouring Babacar Ndiaye at the organisation’s headquarters in Abidjan.
Adesina announced that the AfDB headquarters auditorium will from now on be named Babacar Ndiaye Auditorium.
Babacar Ndiaye, the Bank Group’s fifth elected President, who served two terms between 1985 and 1995, passed away on July 13, 2017 in Senegal.
With Ndiaye’s widow and several children in attendance, as well as former AfDB President Kantinka Dr Kwame D. Fordwor, members of the Senegalese and Ivorian Governments, representatives of the diplomatic corps, and active and retired AfDB staff members. Adesina fondly recalled Babacar Ndiaye’s complete and passionate commitment to the development of Africa.
“He was an AfDB icon, he was a father and mentor to every one of us, and emphatically launched the career of the Bank Group’s current President. He inspired us. In losing him, Africa has lost one of its best sons.”
President Adesina underlined the personal ties between him and his predecessor, recalling that he knew Ndiaye when he worked for the West Africa Rice Development Association (WADRA), which was then based in Bouaké, Côte d’Ivoire.
“Babacar Ndiaye was charismatic, and left an indelible mark on our continent. His legacy is vast, because he always saw the big picture. He was quite simply magnificent,” Adesina stated.
He added, “During the campaign for the AfDB presidency, I naturally went to see him in Dakar. He welcomed me warmly. I took the opportunity to tell him about my vision for the High 5s. He agreed right away, and told me, ‘That’s what Africa needs to transform itself.'”
Arriving at the institution in 1965 as part of the first group of African managers, Ndiaye climbed the organisational ladder to become Division Chief, Director, Vice-President for Finance, and then President in 1985. Babacar Ndiaye was the first AfDB President to be re-elected to a second term of office.
Under his leadership, the pan-African financial institution obtained its first Triple-A rating in 1984.
The former President was the force behind the increase in the Bank’s capital in 1987, which jumped from approximately US $6 billion to $23 billion, a 200% increase, after approving the process of opening the Bank’s capital to non-African countries. He was also responsible for bringing the Bank into the international financial market.
“Babacar Ndiaye accomplished tremendous things for the AfDB and for Africa. He always advocated for excellence. He made the AfDB a credible and respected institution internationally,” stated Donald Kaberuka, former AfDB President (2005-2015), in a message read on his behalf by Victor Oladokun, AfDB Director for Communication and External Relations.
Builder of Institutions
Beyond his complete commitment to the Bank’s success and providing it with a solid foundation, Babacar Ndiaye helped establish major pan-African institutions, such as the African Import-Export Bank, Afreximbank; Shelter Afrique; and the African Business Roundtable.
Representatives of these organisations were specially sent from Cairo, Lagos and Nairobi to attend the tribute ceremony on Thursday.
“Without Babacar Ndiaye, African industry leaders such as Aliko Dangote or Michael Ibru would undoubtedly not be where they are today. Babacar Ndiaye invested his faith and perseverance in Africa’s business community. We will be eternally grateful to him,” said Bamanga Tukur, President of the African Business Roundtable.
Christopher Edordu, founding President of Afreximbank, highlighted Ndiaye’s visionary approach, which allowed him to look beyond the era’s Afro-pessimism and embrace opportunities to finance African businesses.
“It took more than six years to establish Afreximbank. When others abandoned it, Babacar Ndiaye persevered and had patience. He firmly believed in the future of African trade at a time when that belief was not widely shared. Seeing what we have become today, we have to recognize the fact that he was a true visionary,” Edordu explained.
It was not the only time that the AfDB’s fifth elected President was proven right when confronted with naysayers. At a time when housing was not yet central to urban development in Africa, he encouraged the creation of Shelter Afrique, an organisation dedicated to financing affordable housing on the continent.
According to Edmond Adikpe, Shelter Afrique’s regional representative, “Babacar Ndiaye knew how to anticipate. He understood early on that Africa must address the problem of housing. At Shelter Afrique, we are eternally thankful to him for everything he did during our creation and evolution.”
The room was filled with emotion as one speaker followed another, with the audience warmly applauding their words of praise for Babacar Ndiaye, who remains the only President in AfDB history to have risen through the ranks of the organisation.
“He was installed as President in 1985 at the Abidjan Congress Centre in the presence of then Ivorian President Félix Houphouët-Boigny, who held the African Development Bank in high esteem,” recalled Paul Morisho Yuma, former AfDB Secretary General, drawing a standing ovation from the audience.
“Senegal is Proud of You”
Although he devoted his life to Africa, Babacar Ndiaye never forgot Senegal, his country of origin. According to the Senegalese Budget Minister, Birima Mangara, AfDB Governor for Senegal, who flew in from Dakar to attend this ceremony, Ndiaye contributed significantly to the development of bilateral cooperation between his country and the Bank. “Between 1972 and now, the AfDB has invested close to 1,400 billion CFA francs in Senegal. We owe that to all of you here, but in particular to Babacar Ndiaye.
“Senegal is proud of you as a son. Babacar Ndiaye is not gone; he is still present in the depths of Africa. We hear his breath in an Africa on the move,” added the Senegalese Budget Minister, paraphrasing the poet Birago Diop.
In attendance, Ndiaye’s widow, Marlyne Ndiaye, nodded her head in agreement, with tears in her eyes. Arriving in Abidjan in 1965, Babacar Ndiaye developed a special relationship with Côte d’Ivoire, home of the Bank’s headquarters. No fewer than three Ivoirian Ministers were present in the AfDB auditorium this week.
“He was a friend of Côte d’Ivoire. We all miss Babacar Ndiaye. President Alassane Ouattara misses him, having known him well and greatly appreciated him. He was a roving ambassador for African development,” agreed François Albert Amichia, Minister of Sports and Leisure, who led the Ivorian Government delegation.
His Memory Lives On
Alassane Ndiaye, son of the deceased, spoke on behalf of his family. He first thanked the Bank for taking the initiative to hold the ceremony to honour and pay tribute to his father. “The entire family is proud of and thankful for this ceremony. What you have done today touches us deeply and we thank you from the bottom of our hearts,” said the Ndiaye family’s spokesman, in a voice filled with emotion.
He urged those present to pursue the trail blazed by his father.
“He wanted the best for Africa. He believed in and loved the idea of a better Africa. Let’s continue to work for a better future for our continent. That would be the best and most unique way to perpetuate his hopes and his memory,” continued Alassane Ndiaye.
“Replacing darkness with light, well-nourished and healthy children, free flow of goods, people and ideas throughout the continent, and restoring hope to the hopeless – these were the ideals to which President Babacar Ndiaye dedicated his life. The work to realize these dreams continues in the High 5s,” declared AfDB Senior Vice-President Charles Boamah at the ceremony’s conclusion.
Last July, a high-level delegation from the Bank, led by Charles Boamah, along with Vice-Presidents Alberic Kacou and Amadou Hott, Acting Vice-President, Finance, Hassatou N’Sele, and Director of Special Projects Sipho Moyo, attended Babacar Ndiaye’s funeral in Dakar.
From Left; Mr. Michael Larbie, CEO, Rand Merchant Bank Nigeria Limited; Mr. Babajide Komolafe, Chairman, FICAN; Mr. Fola Fagbule, Head of Advisory, Africa Finance Corporation; Engr. Chidi Izuwa, Ag.Director General, Infrastructure Concession Regulatory Commission and Mr. Ladi Sanni, Group CEO, Viathan Engineering Limited at the 2017 Finance Correspondents Association of Nigeria[FICAN] Annual Conference with the Theme: Financing Nigeria's Infrastructure: Issues, Challenges & Options held in Lagos.
Mr. Andrew Alli, President/CEO, Africa Finance Corporation (AFC), says Nigeria needs as much as $3 trillion over the next 30 years to plug the nation’s infrastructure gap and achieve rapid sustainable development.
Alli said at the 2017 FICAN Conference in Lagos that while the government must be a primary source of funding, federal and state governments’ fiscal inflows are grossly inadequate to match the pace of investments required in infrastructure.
Extracts from the Nigeria Economic Recovery & Growth Plan 2017-2020 show that the Federal Government’s medium-term fiscal framework forecasts deficits of N7.6 trillion from 2017 to 2019”. This he said, is evidence that the Federal Government resources are limited and additional resources will be needed.
Specifically, the power sector according to him, recently privatized, is still significantly government driven with challenges of Transmission, Gas supply, tariffs, payment Security, and operational limits which has left the industry in critical state regarding suitability for long-term investment.
The overall effect of this according to the AFC boss is that Nigeria still struggles to provide adequate supply of reliable power to its population of approximately 170 million people, as generation capacity was still about 3038 megawatts at March, 2017. He believes that the country should generate 5000 megawatts by 2018.
From Left; Mr. Michael Larbie, CEO, Rand Merchant Bank Nigeria Limited; Mr. Babajide Komolafe, Chairman, FICAN; Mr. Fola Fagbule, Head of Advisory, Africa Finance Corporation; Engr. Chidi Izuwa, Ag.Director General, Infrastructure Concession Regulatory Commission and Mr. Ladi Sanni, Group CEO, Viathan Engineering Limited at the 2017 Finance Correspondents Association of Nigeria[FICAN] Annual Conference with the Theme: Financing Nigeria’s Infrastructure: Issues, Challenges & Options held in Lagos.“If we don’t have a cost reflective tariff, we will not have the kind of investment we want,” he stressed.
Alli further expressed concern that despite its recent unbundling, “This industry is at a critical juncture in terms of privatisation, liberalisation and other conditions for long-term investment sustainability, both by public sector and private financiers. Both the public and private sides have fallen short of requirements to create a bankable and sustainable sector. ”
Similarly, he said the transport sector is largely public financed (FGN) hence limited by annual fiscal constraints. The end result in Nigeria Alli added is that roads and rail typically get the most attention, but funding is “poor and opaque.”
Arguing that money is not the problem of infrastructure financing, Alli said other challenges that needs to be addressed include: bad Procurement processes, structural problems that make it difficult for investors to get value for money, funding structure, maintenance, tolling, among others. He also, frowns at inadequate attention which Nigeria pays to meeting the needs of specific investors and projects already in progress, or on creating policy incentives that will spur investments.
“Even though the Country has proven gas reserves greater than oil reserves and world class deposits of tin, substantial iron ore and coal resources, unfavorable policies around pricing and access to acreage have limited infrastructure investment and development for several decades in Nigeria,” said the AFC boss.
In proffering solution to poor infrastructure financing, the AFC president said there should be major overhaul in approach, for large ticket billion-dollar projects to work.
“We need to reduce significantly, the level of opaqueness in public procurement. We must establish the framework for private contractors to borrow against a contract. Ministries must spend more time developing contract that private capital can relate with. On natural resource, he said, significant amount of acreage are in the hands of those who have no real interest.
“Everyone involved in the privatization exercise has some blame to carry. We need to achieve a reset of the privatization programme. We are not seeing an empowered regulator that can enforce what is agreed. Enforcement will be painful on both sides, but that pain is necessary,” Alli stated.
Referring to the electricity sector, he said strict enforcement of all agreement by all parties to a contract is important.
He however commended Federal Government for decentralisation of the Nigerian ports via private sector concessions, which he said has allowed for planning and developing of port infrastructure and facilitation of financing for new construction through build-operate-transfer arrangement.
Road transport which accounts for about 80 per cent of good traffic in Nigeria is the predominant mode of transportation, yet only about 20 per cent of the road network in the country is paved.
In the same vein, Alli said despite significant demand for rail transportation, traffic volumes have collapsed to almost zero due to lack of maintenance and capital expansion.
About AFC
AFC is a US$3.4bn (total assets) multilateral development finance institution founded in 2007, with African public and private sector investors. It is established by an agreement between independent sovereign states. AFC has diplomatic status in its member countries and is one of the highest rated financial institutions in Africa, an investment grade international credit rating of A3/P2 from Moody’s Investor Services.
Dr Pius Apere (PhD/FCII)
(Actuarial Scientist and Chartered Insurer)
Linkage Assurance Plc says it’s committed to helping small and medium enterprises survive business challenges and grow into the future.
The company through one of its newest products ‘SME Comprehensive Insurance Plan’ provides financial protection to small and medium sized businesses against an array of insurable risks in order to ensure their business continuity.
“Linkage Assurance Plc’s SME Comprehensive Insurance allows business owners to run their companies without having to worry about unexpected events that can slow them down or bring them to a complete halt”, the Company said in a statement.
“Whether it is water damage from leaking pipes, money lost in transit theft, or a fire at a warehouse, these are liabilities that cannot always be anticipated. Linkage Assurance Plc provides you the confidence you need to keep moving with the knowledge that your assets are covered from loss and other legal liabilities. The Plan is available with 5 different optional sections and flexible enough to cater for the insurance needs of SMEs across diverse sectors of the market.”
According to the Managing Director/CEO of the Company, Dr Pius Apere, Linkage Assurance understands that Nigerian SME businesses operate in a tough, rough and often fast changing harsh economic environment.
“SME businesses are still held to the same standards of corporate governance, employee welfare and liability as the larger companies and they often have to manage their risks with fewer resources and less time to spare on distresses other than those relating to day to day business.”
Apere said SMEs therefore require an affordable, well-packaged insurance policy which will protect their assets, liabilities and employees from the risks associated with operating a business.
The Linkage Assurance Plc’s SME Comprehensive Plan covers a wide spectrum of SME customers from a small single office premises for self-employed business owners to a multi-dimensional retail companies with a material damage/business interruption exposure spread across multiple locations.
The cover is for hotels, hospitals, water bottlers, publishers/printers, drycleaners, haulage, furniture, logistics and cottage manufacturers, etc.
Features of the plan the Company listed includes damage to buildings as a result of fire; theft of contents, with the following options to cover; occupier’s liability; personal accident for employees; professional indemnity and motor (including own goods).
Mr. Adebayo Shittu, Minister of Communications delivering his keynote address at the 2017 Indo-Africa ICT Expo in Lagos.
Mr. Adebayo Shittu, the Minister of Communications say India plans to invest over $4 billion in Nigeria’s ICT sector as part of on-going partnership with that country.
Shittu said at the Indo-Africa ICT Expo in Lagos that the ministry is also finalizing agreement for India to finance 1000 solar-based masts in rural areas in the country to address the lack of adequate level of networks in such areas.
“ICTs continue to drive global development in an unprecedented way, providing huge opportunities for social and economic development. In the case of Nigeria, the federal government recognizes ICTs as one of the key drivers of the economy. To this end, ICT has been factored in all national long-term development blueprints that aim at transforming Nigeria into a knowledge economy by 2020.”
The minister also hinted of plans to establish an ICT bank to provide financing for ICT investments in Nigeria. He lamented the high interest rate charged by commercial banks, which he described as not being conducive to players in the ICT sector.
The President/Chief Executive of the Africa Finance Corporation (AFC), Mr. Andrew Alli and other leading experts in the financial sector are expected to proffer solution to the challenges of infrastructure financing in the country, at the 2017 annual conference of the Finance Correspondents Association of Nigeria (FICAN).
Others expected at the annual event which holds at the Orchid Hotels, Lekki, Lagos, on Saturday, 16th September, include the Managing Directors/Chief Executive Officers of Heritage Bank Plc, Mr. Ifie Sekibo; Rand Merchant Bank, Mr. Micheal Larbie; SunTrust Bank Limited, Mr. Mohammed Jibrin; Viathan Engineering Limited, Mr. Ladi Sanni; as well as the Acting Director General of the Infrastructure Concession Regulatory Commission, Engr. Chidi Kingsley Izuwah.
The theme of the conference is: “Financing Nigeria’s Infrastructure: Issues, Challenges, and Options.”
FICAN in a statement stressed that the place of infrastructure in economic and social development of a country cannot be over emphasised.
Infrastructure financing, according to the Association, plays critical roles in promoting economic growth, standard of living, poverty reduction by enhancing productivity, improving competitiveness and linking people and organisations together through telecommunications.
It also contributes to environmental sustainability.
Nigeria is currently faced with huge infrastructural gap that has hindered its earnest desire to exploit its rich natural and human resources for its development. For instance, in spite of the country’s huge oil and gas, sunlight and hydro resources, Nigeria cannot generate enough electricity to drive its development.
“Indeed, Nigeria’s infrastructure deficit had stymied its economic growth, restricted productivity of its economy and limited its competitiveness. The challenge of the absence of critical infrastructure continues to impact negatively on the cost of doing business, investment, and capital inflow into the country,” the statement added.
It had been projected that the country needs to invest $10 billion annually over the next 10 years for it to significantly reduce its infrastructure deficit. Some of the sectors that require huge investments include power, housing and highways, railways, ports, airports, dams, bridges and tunnels, oil and gas, water and sanitation and telecommunication.
Therefore, presently, the need to evolve creative options to generate long-term finance to tackle Nigeria’s infrastructural challenges is one of the most important questions agitating the minds of policy makers in public and private sectors.
“What are the appropriate financing vehicles to enable the federal, states and local governments in the country achieve the objective of infrastructure development? Are Nigerian banks well positioned to finance such big-ticket deals?” are among the issues the experts are expected to discuss at the conference.
Leadway Assurance has reiterated its commitment to providing insurance protection to practicing lawyers who are members of the Nigerian Bar Association (NBA). Leadway asserted this in its partnership with the NBA for the week long 2017 Nigerian Bar Association General Conference which held from August 18th to 24th, 2017 at the Landmark Centre, Lagos.
The conference themed, “African Business: Penetrating through Institution Building” drew participants cutting across different sectors and industries around the world.
As part of this partnership, Leadway Assurance deployed its state of the art, first-of-its-kind Insurance Mobile Office to engage the thousands of lawyers who attended the conference on its tailored-for-lawyers insurance plan known as the Leadway Lawyer Affinity Cover.
The plan, which is for all active NBA members, comes at no extra cost to the lawyers as it is covered under the annual bar practice fee paid to the NBA. The Leadway Lawyer Affinity plan provides insurance cover of up to N1,000,000 (One Million Naira only) covers accidental permanent total disability, critical illness, accidental medical and accidental death expenses for the ‘learned’ professionals.
Speaking on the partnership, Executive Director, Leadway Assurance, Ms. Adetola Adegbayi said:
“We believe that by providing insurance to the members of the Nigerian Bar Association, we are intrinsically providing the biggest support to the economy, governance and government of the country. Insurance helps safeguard the profession and the professionals alike.”
It would be recalled that the NBA, the largest body of lawyers in Africa with over 100,000 registered members, entered into a strategic partnership with Leadway Assurance Company Limited in 2014 to provide a feasible group life insurance policy for all lawyers who pay their Annual Bar Practice Fees when due.
The insurance policy is designed to cover all the NBA lawyers in the following areas; Death or Accidental Permanent Total Accidental Disability; Accidental death; Critical illness and Accidental Medical Expenses.
To further deepen discourse at the conference, Leadway Assurance also hosted a Forum Session which held on Wednesday, August 23, 2017.
The high profile panellists at the session include the Executive Governor of Oyo State, Senator Abiola Ajimobi; Ghanaian Minister of Finance, Mr. Ken Ofori-Atta; and Director-General, Debt Management Office (DMO), Mrs. Patience Oniha.
Leadway Assurance is one of Nigeria’s foremost insurance service companies with a reputation for service efficiency and customer reliability. The organisation is committed to bridging the financial protection gap and increasing the rate of insurance penetration in Nigeria.
Allianz Group announced yesterday a binding agreement to acquire 98 percent of Nigerian insurer Ensure Insurance Plc from its core shareholder Greenoaks Global Holdings Ltd. (GGH).
Ensure Insurance Plc. offers life and non-life insurance services and generated 11 million euros in gross premiums written in 2016.
Allianz Group views Africa as one of the important future growth markets and is now present in 17 countries across the region. Nigeria, a fast growing country with a population of more than 180 million citizens, is the country with the largest GDP on the continent.
“Nigeria is one of the most dynamic economies in Africa. The acquisition of Ensure Insurance Plc. gives us full access to this key insurance market in Africa and marks a major milestone for Allianz’s long-term growth strategy on the continent. This new step of development will allow us to offer the best products and services to Nigerian customers in both personal and commercial lines. In addition, as we grow our excellent African teams, we are laying particular emphasis on hiring and developing local talent,” said Coenraad Vrolijk, Regional CEO Africa of Allianz SE.
Pending regulatory approvals, the transaction is expected to close end of 2017 when Ensure Insurance Plc. shall become a member of the Allianz Group.
About Allianz Group
The Allianz Group is one of the world’s leading insurers and asset managers with more than 86 million retail and corporate customers. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing over 650 billion euros on behalf of its insurance customers while our asset managers Allianz Global Investors and PIMCO manage an additional 1.4 trillion euros of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we hold a leading position in the Dow Jones Sustainability Index. In 2016, over 140,000 employees in more than 70 countries achieved total revenues of 122 billion euros and an operating profit of 11 billion euros for the group.
In Africa[1], Allianz is currently present in 17 countries[i] and accompanies clients in 39 countries. Its 1,500 employees achieved regional revenues of 600 million euros in 2016. Allianz also provides micro-insurance for 500,000 low income families and individuals in Africa.
About Ensure Insurance Plc
Ensure Insurance Plc. is one of the most innovative and fastest growing insurance companies in Nigeria. The company has undergone a turnaround and transformation exercise consequent upon its acquisition from Union Bank of Nigeria Plc in 2014 and at which time, it was known as Union Assurance Company Plc.
Ensure provides simple, accessible, relevant and affordable products to the retail segment of the industry and a bedrock of highly secure reinsurance facilities and unmatched technical competence for its corporate business customers. We are focused on delivering excellent products and customer services and we intend to be the dominant insurance services provider in Nigeria. Ensure Insurance Plc. recorded astounding growth of 46 percent and a Profit After Tax of Naira 1.052 billion (3 million euros) in FY 2016.
Allianz in Africa: Benin, Burkina Faso, Cameroon, Central African Republic, Egypt, Ghana, Ivory Coast, Kenya, Madagascar, Mali, Mauritius, Morocco, Nigeria, Republic of the Congo, Senegal, South Africa, Togo.
Financial institutions’ drive to become more “experience-driven” is opening the door to potential competition from global technology giants, according to a report published by the World Economic Forum.
According to the report, Beyond Fintech: A Pragmatic Assessment of Disruptive Potential in Financial Services, the challenge to banks and insurers is down to large technology firms hollowing out the value proposition of these institutions by carrying out more core functions, even as banks and insurers lean ever more heavily on them to compete.
Another finding of the report, which aims to examine the impact of innovation on the financial ecosystem, is that fintech start-ups, while achieving success in terms of changing the basis for competition, have had less impact than expected in disrupting the competitive landscape.
“The partnership between banks and large tech companies risks not staying a reciprocal one,” said Jesse McWaters, lead author of the study, and Project Lead, Disruptive Innovation in Financial Services at the World Economic Forum. “Financial institutions increasingly rely on technology firms for their most strategically sensitive capabilities, but can so far only offer their ongoing business in return.”
Examples include:
Amazon Web Services (AWS), which provides services to dozens of finance companies, including Aon, Capital One, Carlyle, Nasdaq, Pacific Life and Stripe
Brazil’s Banco Bradesco Facebook app, which allows customers to conduct day-to-day banking from Facebook, relying on the social network’s customer data analytics to target users
Capital One and Liberty Mutual’s “Alexa” solution (a voice-activated personal assistant), which allows customers to check balances, pay bills and track spending through these devices
While these partnerships can accelerate innovation, the report points out that they also pose a risk should large technology players choose to enter financial services in direct competition with retail banks and insurers.
“Tech giants would be able to pick and choose their points of entry into financial services; maximizing their strengths like rich datasets and strong brands, while taking advantage of incumbent institutions’ dependence on them,” said McWaters. As a result, financial institutions will likely need to walk a challenging line between capitalizing on the services of large technology players and becoming dependent on them.
For customers, the entry of large technology firms into financial services could mean entrusting both their financial and non-financial data to the same company. For policy-makers it would raise serious questions about how best to avoid both anticompetitive behaviour and the inappropriate use of personal data in decision-making.
The findings suggest a move away from a focus on the potential competitive threat of high-tech financial services start-ups, typically called “fintechs”. Much research, including the World Economic Forum’s 2015 report on The Future of Financial Services, suggested that “niche” fintechs could stage a broader disruption of the financial system. But, while they have deeply influenced the direction of innovation in the industry, there are growing doubts about their ability to directly challenge incumbent financial institutions.
“Fintechs have changed the basis of competition in financial services, but not the competitive landscape” said Rob Galaski, Partner, Americas FSI Regional Leader, Deloitte Canada, and co-author of the report. “Fintechs now define the tempo and direction of innovation in financial services, but high customer switching costs and the rapid response of incumbents has challenged their ability to scale”.
“The ability to be a fast follower has proven more important than being first for large financial institutions,” said Galaski. “Agile incumbents have used the fintech ecosystem as a supermarket for capabilities, making the ability to nurture and rapidly form partnerships a critical ingredient to banks’ competitive success.”
“Technology is not driving a global convergence in customer experience, instead divergent customer demand and regulatory priorities are creating distinctly regionalized financial ecosystems” said Bob Contri, Principal, Deloitte Consulting LLP (US); Deloitte Global Financial Services Industry Leader, and an adviser to the report. “This could pose a serious challenge to regulatory coordination, as regulators struggle to understand the disparate impact of global regulations on each region”.
The Management of Nigeria Ports Authority NPA has approved the elevation of some of its managers to the rank of Assistant General Manager (AGM), in line with its commitment towards operational efficiency.
Amongst those affected are Ibrahim Nasiru of the Public Affairs Division which has been rechristened Corporate and Strategic Communications under the new structure of the Authority.
Others are Eze Saint David Chima of the Audit Division and Ibezim Geofery of ICT who moves to Monitoring and Compliance Division.
Also affected are Fawole Adeleke Stephen of Accounts and Jagun Khadijat previously of Medical Services now moved to SERVICOM as Assistant General Manager.
Similarly promoted are Adah Ambrose and Bamgbala Tokunbo, both of ICT and Nwaiwu Bartholomew Chijioke of Procurement Division.
NPA’s Abuja Laison office would have Maltok Josephine Adar as AGM same as Engr. Ashade Olarewaju Kolawole of Dockyards.
Others on the list are Sobande Theresa Nkemdilim previously of Personnel to Administration and Dr. Mrs. Essien Titilola Ayoola of Medical Services.
All the appointments take effect from the 1st August 2017.
At the close of trade today, the equities market extended losses to the third consecutive session as the benchmark index fell 1.5% to close at 35,629.13 points while YTD gain retreated to 32.6%. Consequently, investors lost N185.0bn as market capitalisation settled at N12.3tn.
Performance was dragged by losses in large cap stocks such as DANGCEM(-3.8%), GUARANTY (-0.5%), ACCESS (-3.9%) and DANGSUGAR (-4.9%). However, activity level improved as volume and value traded surged 66.1% and 93.8% to 239.9m units and N2.9bn respectively.
All Sector Indices Save For Insurance Close in the Red
Sector performance was largely bearish as all indices closed lower save for the Insurance index which 0.3% due to upticks in CONTINSURE (+4.5%) and NEM (+1.0%). The Industrial Goods index led losers, down 1.8% on account price depreciation in DANGCEM(-3.8%) while the Banking index followed, shedding 0.8% as a result of declines in GUARANTY (-0.5%) and ACCESS (-3.9%).
FIDELITY released its H1:2017 report today which showed Gross Earnings and PAT expanded by 22.1% and 65.6% Y-o-Y to N85.8bn and N9.0bn respectively. Similarly, the Oil & Gas index slid 0.5% owing to negative sentiment towards MOBIL (-5.0%). Losses in GUINNESS (-3.6%) dragged the Consumer Goods index 0.1% lower.
Investor Sentiment Weakens
Investor sentiment remained weak as market breadth (advancers/decliners’ ratio) dropped to 0.2x (from 0.5x recorded yesterday) – 7 stocks advanced against 30 that declined. The best performing stocks today were CUTIX (+10.0%), MAYBAKER (+4.5%) and CONTINSURE (+4.5%) while NAHCO (-5.0%), FIRSTALUM (-5.0%) and MOBIL (-5.0%) were the worst performers.
The continuous decline in market performance as seen in previous sessions presents an opportunity for bargain hunters to take advantage of stocks that had declined. Hence, we anticipate a rebound in the equities market in subsequent trading sessions this week.
The executive management of Law Union & Rock Insurance Plc at a recent
event in Lagos.
Law Union & Rock Insurance Plc says it is projecting profit after tax of N1 billion by the end of 2017 jus as its profit rose by four percent in the second quarter from N307.3 million in 2016 to N318.7 million in the same period of 2017.
Mr. Jide Orimolade, Managing Director/CEO, Law Union & Rock Insurance Plc, said the company achieved gross premium income of N2.7 billion in the first half of the year as against N2.3 billion in 2016. The underwriter also paid claims of N622.5 million in the half year ended June 30, 2017 to underline its commitment to prompt settlement of claims to its policyholders.
Orimolade said:
“Law Union is a well-known underwriting firm with a stable outlook and result-oriented management. We have numerous strategic initiatives which have contributed immensely to the growth of our financials. The company is not only determined to meet all her obligations to policyholders, it is also committed in adding value to customers through disruptive innovation that delivers seamless, convenient and stress-free business ecosystem.”
The executive management of Law Union & Rock Insurance Plc at a recent event in Lagos.
The company listed its 2017 corporate goals as:
Grow gross premium income by 50 percent
Retain 90 percent of existing customers
Grow direct & retail businesses
Improve relationship with brokers and other channels
Achieve improved credit rating from A- to A+ by GCR
Become the preferred first choice underwriter amongst general insurance business providers in Nigeria
The Board of the Nigerian Ports Authority (NPA) has approved a new organisational structure and the commencement of a Business Process Re-engineering initiative that will create synergies to improve efficiency. It has also approved the redistribution of all General Managers in its employ.
The far reaching initiatives which are aimed at making the NPA a truly professional and performance driven organisation, were approved at a board meeting which on July 27, 2017 in Lagos.
The management notes that this review has become important because NPA’s structure has remained the same in spite of the 2006 concession which changed the Authority status from owner/operator to landlord.
This change in status brought about the concession of cargo handling operations to the private sector; outsourcing of dredging, towage services and vessel maintenance, use of contractors to build infrastructure.
Changes approved by the Board include:
the reduction in the number of General Managers from 25 to 22; the upgrade of the Hydrography and Dredging Department into a Division status to be headed by a General Manager in recognition of its strategic importance to the Authority; the upgrade of the Information and Communications Technology Department into a Division to take more responsibilities from Departments like Utilities; the creation of a new Monitoring and Regulations Division; the merger of the Capital Projects and Maintenance Divisions into a single Engineering Division to eliminate redundancies; the scrapping of the Special Duties Division; scrapping of the zonal office structure such that departments in the ports will now report directly to the head office.
Hadiza Usman – MD, NPA
Other decisions taken include: a change in the nomenclature of nine departments and divisions including Public Affairs, which will now be known as Corporate Communications; Overseas Office (London Office) into International Liaison Office; Capital Projects and Maintenance Divisions now to be known as Engineering Division; Hydrography& Dredging Department now Hydrography Services Division; Monitoring and Compliance Division now Monitoring and Regulation Division; Commercial and Port Promotion Services Department now Tariff& Billing Department; Secretary/Legal Services now Legal Services; Insurance & Risk Management Department now Enterprise Risk Management Department andthe Business Development and Joint Venture Department into Public Private Partnership Division.
The Authority is convinced that this new structure will enhance its capacity to:
To meet its new mandate and strategic direction,
Improve allocation and optimisation of resources;
Eliminate the duplication of resource and work duplication and
Reduce cost to income ratio to the advantage of all stakeholders and Nigerians as a whole.
In addition to the above, the initiative will specifically forestall:
The duplication of responsibilities across divisions
The unnecessary bottleneck currently created by the zonal office structure
Redundancies created by the transfer for certain core function of the Authority to third party contractors and
The multiple reporting relationships and attendant red tape.
The business process re-engineering process is the next phase of the re-organisation and it will detail work procedures that will enable the Authority take full advantage of the technology that has already been deployed and terminate the low capacity utilisation engendered by manual processes.
The Authority assures that the ultimate goal of this initiative is to institute a transparent and efficient system which will deliver the best dividend to Nigeria and its citizens. We solicit the support of all Nigerians to the achievement of these goals.
