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Insurance Customers Meet at Insurance September

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“The transformational changes we expect in the insurance industry in Nigeria will occur when policyholders (insurance customers) understand the value of insurance and positively engage insurance operators to deliver on their promises and commitments.”

This was the assertion of Ekerete Ola Gam-Ikon while speaking on the upcoming policyholders’ event, ‘Insurance September’ put together by select professionals.

Ekerete, a respected Consultant on Insurance, Management and Strategy, stated that the time has come to discuss the insurance industry in Nigeria from the point of the positive experiences of policyholders and, to some extent, investors.

According to him, Insurance September is a developing idea that evolved from several interactions with other professionals, business owners, policymakers, entrepreneurs and consultants concerned about the challenges the insurance industry faces in trying to respond to the increasing expectations of customers in our clime.

He said Insurance September was therefore the opportunity for policyholders to share practical ideas that will improve their experiences with the insurance operators.

“Policyholders are no longer impressed with being told that insurance is highly technical and left confused when they have claims” he said.

Themed “Breaking the Code”, the event scheduled to hold on September 29, 2017 is expected to feature well respected speakers including Mr. Olufemi Awoyemi of Proshare, Mrs. Ini Abimbola of ThistlePraxis, Mr. Dienye Peterside of Pilot Finance, Mr. Charles O’Tudor of Adstrat, Mrs. Edobong Akpabio of Organic Green Animal Farms, Mr. Abiodun Atobatele of ATB Techsoft, Mr. Emmanuel Essien of Alpha Mead Capital, Mr. Olugbolahan Mark George of Mark George Consultants and Mr. Emmanuel Udowoima of BrandHealth. They will share insurance experiences from their professional perspectives.

According to Ekerete Ola Gam-Ikon, who had also worked with leading insurance brands in Nigeria, the event is holding in Lagos, the commercial capital of Nigeria and home of insurance business; to ensure quality participation from all stakeholders.

Guests, largely insurance customers, are sure to enjoy a day of innovative insurance discourse that will ultimately deepen insurance penetration in Nigeria.

Rivers State to Host 2017 Editors’ Conference

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Chief Nyesom Wike Executive Governor Rivers State
Chief Nyesom Wike Executive Governor Rivers State

Rivers State will host this year’s edition of the All Nigeria Editors’ Conference (ANEC 2017) which holds in Port Harcourt from Wednesday, September 20 to Sunday, September 24.

ANEC is the annual flagship conference of the Nigerian Guild of Editors (NGE). This year’s event themed: Nigerian Media – Balancing Professionalism, Advocacy and Business will also have an extraordinary convention to adopt the reviewed NGE constitution.

The Nigeria Guild of Editors has in recent years dedicated its annual conference to fostering and deepening discourses on national issues. This year, the Conference is focusing on the media as a major stakeholder in the nation’s democratic project.

Now in its 13th year, this is the second time that ANEC will focus solely on the media after its first edition held in 2004 in Ada, Osun State, with the support of the government of the then Governor Olagunsoye Oyinlola. The theme of the 2004 conference was: Ethics, Professionalism and the Nigerian Editor.

According to Egbemode, the choice of this year’s theme was a response to popular demand by members of the Guild on the need for the Guild to discuss the myriad challenges confronting the journalism profession and proffer lasting solution to them.

Chief Nyesom Wike Executive Governor Rivers State
Chief Nyesom Wike
Executive Governor
Rivers State

The prevailing economic downturn has had a negative impact on the media leading to low revenue receipts, job losses with several media houses either extinct or on the brink of collapse.  There is also the issue of safety of journalists.

In recent time, there have been cases of impunity against journalists who were either harassed or killed in the course of discharging their constitutional duty which is to uphold the responsibility and accountability of the government to the people.

All of this has necessitated the theme of this year’s ANEC which will be attended by no fewer than 300 Nigerian editors from the print, electronic and online platforms, media entrepreneurs, sundry public officers and administrators.

Governor Wike said that the conference would afford the state the opportunity to showcase its investment potential as well as consolidate its partnership with the media for sustainable development of the state.

Wike noted that the state is hosting several national and international events as a demonstration of the fact that Rivers State is an investors’ destination, stressing that the state is peaceful and the people hospitable.

“Hosting this year’s conference will also make the editors witness first-hand the development projects and programmes of my administration which has improved the living standard of the people”, the Governor said.

ANEC is the largest gathering of Nigerian editors. It is a watering hole of ideas that has shaped government policies and programmes over the years. The conference also attracts both local and foreign speakers as well as editors from organizations such as the West African Editors Forum (WAEF), the African Editors Forum (TAEF), the World Editors Forum (WEF), the World Association of Newspapers (WAN) and the Global Editors Network (GEN).

New Bills Threaten N6.5trn Pension Assets

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PenOp

The Pension Fund Operators Association of Nigeria (PenOp) has warned that pension assets in the country currently valued at N6.5 trillion could be at risk if multiple bills on the pension system at the National Assembly become law.

PenOP President, Eguarekhide Longe said prominent among the Bills, include one sponsored by Hon. Oluwole Oke on May 16, 2017 seeking to amend the Pension Reform Act 2014 to exclude members of the Nigeria Police, the Nigerian Security and Civil Defence Corps, Nigeria Customs Service, Nigeria Prison Service, Nigeria immigration Service and the Economic and Financial Crimes Commission from the application of the Contributory Pension Scheme (CPS) and other related matters.

He said the Bill passed its second reading and has been referred to the relevant Committee of the House of Representatives for further action.

He stated that an additional cause for concern regarding the legislature arose on May 10, 2017, when yet other private member’s Bill sponsored by Senator Aliyu Wamako (Constituency – Sokoto North) sought to pass a Law for “An Act to Further Amend the PRA 2004 to Provide for Definite Percentage a Retiree Can Withdraw from his RSA and for Other Matters Related Thereto.”

He noted that this permits retirees to withdraw a definite rate of 75 per cent of the value of their RSA upon retirement, leaving only 25 per cent to be spread over their expected years of retirement as periodic pension payments.

He explained that the proposal is based on a misunderstanding of the concept of pension payment under the CPS.

Longe stressed that it is pedestrian to assume that lump sum should be fixed, rather, what should be implemented is a minimum replacement ratio as monthly pensions.

“Accordingly, the retiree should keep an amount that can procure an amount of monthly pensions as replacement of salary over an expected life span. Whatever remains over that amount may be taken as lump sum. The current replacement ratio under the CPS is 50 per cent of last pay by virtue of the PRA 2014 and regulations issued by the Commission. One of the objectives of the CPS is to assist improvident individuals by ensuring that they save in order to cater for their livelihood during old age.

“The proposed amendment would mean leaving only 25 per cent to be spread over the lifespan of the retiree, which may be longer than 20 years, thus giving meagre monthly pensions below the current replacement ratio of a minimum of 50 per cent of last pay. It is doubtful if the 25 per cent balance in a retiree’s RSA, after deduction of 75 per cent lump sum, would, if spread through the retiree’s expected life span, be adequate to reasonably cater for his livelihood during old age. Accordingly, the proposed amendment would only result in the depletion of the RSA without regard for the retiree’s continued subsistence, thereby impoverishing retirees.”

Equities Market Extend Losses To Third Consecutive Session… NSE ASI Down 2.7%

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The negative trend in the equities market was extended into the third consecutive trading day as the All Share Index (ASI) fell 2.7% to close at 36,102.38 points whilst YTD gain further moderated to 34.3%. Accordingly, market capitalisation declined by N346.1bn to settle at N12.4tn.

The poor performance was majorly attributable to negative sentiment towards DANGCEM (-4.9%) and GUARANTY (-4.7%) in addition to profit taking in NIGERIAN BREWERIES (-2.6%) and ZENITH (-3.3%). However, activity level on the exchange waned as volume and value traded dipped 42.6% and 6.4% to 224.8m units and N5.1bn respectively.

Industrial Goods Index Tops Sector Losers
Performance across sectors was bearish as all indices trended southwards. The Industrial Goods index led losers, down 3.1% on account of sustained losses in DANGCEM (-4.9%) and WAPCO (-1.7%).

The Banking index followed suit, down 2.8% due to declines recorded in GUARANTY (-4.7%), ZENITH (-3.3%) and ACCESS (-5.0%). GUARANTY released its H1:2017 earnings result today, growing Gross Earnings and PAT by 2.0% and 16.6% to N214.1bn and N83.7bn respectively.

In the same vein, the Consumer Goods and Oil & Gas indices fell 1.0% apiece on account of price depreciation in NIGERIAN BREWERIES(-2.6%), GUINNESS (-2.2%), TOTAL (-4.0%) and FORTE (-2.9%) respectively. Similarly, the Insurance index marginally declined 0.1% owing to a drop in price of LINKASSURE (-1.3%).

Investor Sentiment Remains Weak
In line with benchmark performance, market breadth remained weak, as the ratio of advancers to decliners settled at 0.3x (same as yesterday’s close of 0.3x) after 10 stocks gained against 30 losers.

CILEASING (+5.2%), VITAFOAM (+4.4%) and UPL (+3.7%) led the gainers’ chart while ACCESS (-5.0%), FCMB (-5.0%) and STANBIC (-4.9%) were the worst performers.

As we noted yesterday, market performance remains driven by profit taking after the sustained rally in prior weeks.

Nonetheless, we believe this negative trend will be reversed on account of bargain hunting. Hence we anticipate a rebound in the equities market in subsequent sessions this week.

Market Statistics:  Wednesday, 16th August 2017

Market Cap (N’bn)              12,443.5
Market Cap (US$’bn)                    40.7
NSE All-Share Index            36,102.38
Daily Performance %     (2.7)
Week Performance %         (5.4)
YTD Performance %                  34.3
Daily Volume (Million)                 224.8
Daily Value (N’bn)                      5.1
Daily Value (US$’m)         16.7

 

Global Airlines Financial Monitor: July 2017

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IATA
  • Initial airline financial results from Q2 2017 have been more robust than earlier in the year, and suggest that the squeeze on profit margins from higher costs and weak yields peaked in Q1.
  • Meanwhile, having trended downwards since 2013, the latest monthly data suggest that passenger yields have now started to trend upwards. Exchange rate-adjusted yields were broadly unchanged from their year-ago level in May.
  • Global airline share prices fell in July, driven by a decline in the North America index. Having seen airline shares outperform global equities over the past year, July’s decline appears, in part, to reflect profit taking by investors.
  • Brent crude oil prices rose back above US$50/bbl in July, and ended the month nearly 10% higher than they started it. Nonetheless, the futures market remains consistent with just a modest increase in prices over the medium term.
  • Passenger and freight demand growth posted their strongest first half of the year since 2005 and 2010 respectively. The seasonally-adjusted passenger load factor remained broadly stable close to an all-time high over the same period, while the freight load factor recovered to its highest level in more than two and a half years.
  • The pick-up in global trade is helping to support premium passenger demand, particularly to, from and within Asia Pacific. Premium revenues have risen in year-on-year terms on key routes to and from the region so far in 2017.

PenCom, Operators Oppose 75% Lump Sum Bill

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L:R- Company Secretary, NPF Pensions Limited Ikechukwu Utazi; Managing Director, FUG Pensions, Usman Sulaiman; Head, Research and Corporate Strategy Department, National Pension Commission (PenCom), Dr. Farouk Aminu; President, Pension Funds Operators Association of Nigeria (PenOp), Longe Eguarekhide; Executive Secretary, PenOP, Susan Oranye; Executive Director, Investment, NPF Pensions Limited, Nicholas Nnaji and Managing Director, AXAMansard Pension, Dapo Akinsanya at the 2017 pension retreat in Abeokuta, Ogun State.

The National Pension Commission (PenCom) and Pension Funds Operators Association of Nigeria (PenOp) have jointly opposed a bill at the National Assembly seeking payment of 75 percent lump sum to a retiree upon retirement as against the current 50 percent enshrined in the Pension Reform Act 2014 and regulations by PenCom.

The bill was sponsored by Senator Aliyu Wamako, former executive governor of Sokoto State.

In a position paper, Mrs. Aisha Dahir-Umar, Acting Director-General of PenCom faulted the bill on the ground that it is based on a misunderstanding of the concept of pension payment under the Contributory Pension Scheme(CPS).

“It is trite that lump sum should not be fixed. Rather, what should be implemented is a minimum replacement ratio as monthly pensions. Accordingly, the retiree should keep an amount that can procure an amount of monthly pensions as replacement of salary over an expected life span.”

She also countered that the proposed amendment would mean leaving only 25 percent to be spread over the life span of a retiree, which may be longer than 20 years whereas one of the objectives of the CPS is for people to save to cater for their livelihood during old age.

L:R- Company Secretary, NPF Pensions Limited Ikechukwu Utazi; Managing Director, FUG Pensions, Usman Sulaiman; Head, Research and Corporate Strategy Department, National Pension Commission (PenCom), Dr. Farouk Aminu; President, Pension Funds Operators Association of Nigeria (PenOp), Longe Eguarekhide; Executive Secretary, PenOP, Susan Oranye; Executive Director, Investment, NPF Pensions Limited, Nicholas Nnaji and Managing Director, AXAMansard Pension, Dapo Akinsanya at the 2017 pension retreat in Abeokuta, Ogun State.

“Retirees will spend the money quickly and return to dependency and insecurity” if the 75percent lump sum bill succeeds while “retirees will return to active life rather than retirement, thereby reducing their life expectancy.”

PenCom also argued that the amendment will impact the national economy negatively by drawing large amounts out of the pool of pension assets.

In the same vein, the Pension Funds Operators Association of Nigeria (PenOp) warned that allowing retirees to draw 75 percent lump sum will leave such retirees with meagre monthly pensions below the current replacement ratio of a minimum of 50 percent of last pay.

“It is doubtful if the 25 percent balance in a retiree’s Retirement Savings Account (RSA) after deduction of 75 percent lump sum, would, if spread through the retiree’s expected life span, be adequate to reasonably cater for his livelihood during old age.”

PenOp, which is the umbrella body of pension fund operators in the country, also warned that with 75 percent lump sum in their kitty, retirees will become targets for unscrupulous business opportunities due to their lack of experience in handling or investing such bulk sums, and will spend the money quickly and return to square one.

“A 75 percent lump sum payment upon retirement is never the case in all jurisdictions operating the Contributory Pension Scheme the world over.”

According to PenOp “it is important that members of the legislature and indeed all arms of government are held accountable for the ill-informed decisions they take that have indelible effects on the lives of the people they govern. Also, urgent attention of the public and government needs to be drawn to convey the positive message of pension reform to all the publics and stakeholders of the pension system in Nigeria.”

NCC Summons GLO, Suspends Promotion

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Prof. Umar Danbatta EVC of NCC
Prof. Umar Danbatta EVC of NCC

The Nigerian Communications Commission (NCC) has summoned he management of Globacom Limited to appear before the Commission in Abuja on Thursday, August 17, 2017 for allegedly violating the terms of its GLO Overload Promotion. The Commission also ordered Globacom to suspend the promo immediately pending the outcome of the summons.

In a letter (NCC/Glo/F76/vol/13/2017) dated August 10, 2017 and signed by Sunday Dare, Executive Commissioner, Stakeholders Management and Abdullahi Maikano, Director Consumer Affairs of NCC, the Commission stated as follows:

“It has however come to our notice that Globacom Nigeria Limited has been implementing the above regulatory approval in breach, especially given your recent media campaign on the “Glo Free Data Offer, a clear departure from the terms and condition of the approval given for the Glo Overload Promotion.

Consequent upon the above, you are hereby directed to suspend implementation of the Glo Overload Promotion from your network with immediate effect.”

Dettol Nigeria Support Better Hygiene During Breastfeeding

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L-R: Nursing mother, Mrs. Adenekan Taibat; Marketing Director, RB West Africa, Aliza Leferink; Chief of Party, Stop Diarrhea Initiative, Save the Children International, Nigeria Chapter, Mr. David Atamewalen; Community Leader, Save the Children International, Mrs. Bunmi Farayola during the Breastfeeding Week organised by RB Dettol and Save the Children International.

The World’s leading consumer health and hygiene company, Reckitt Benckiser (RB), makers of Dettol, has urged nursing mothers to embrace good hygiene practice during breast-feeding.

This was reiterated upon at a breast-feeding workshop, titled ‘Sustaining Development Together’ which was carried out in partnership with Save Our Children International, Nigeria Branch in Lagos, recently.

This event was organised to mark the World Breast-Feeding Week which is celebrated between August 1st and 7th in more than 170 countries. It had in attendance over 500 nursing mothers from the Shomolu Local Government Area in Lagos, Nigeria, and they were taught proper hygiene for themselves, their babies and the whole family. They were also each given Dettol antiseptic liquid and a book on hygiene to help practice this.

According to the Marketing Director, RB West Africa, Aliza Leferink, “at RB, we reach an average of 700 thousand mothers yearly through our New Mum’s Programme where we educate about proper hygiene for mothers and their babies.”

L-R: Nursing mother, Mrs. Adenekan Taibat; Marketing Director, RB West Africa, Aliza Leferink; Chief of Party, Stop Diarrhea Initiative, Save the Children International, Nigeria Chapter, Mr. David Atamewalen; Community Leader, Save the Children International, Mrs. Bunmi Farayola during the Breastfeeding Week organised by RB Dettol and Save the Children International.

“Breast Feeding is all about giving babies a healthy life, and at RB, we are committed to providing products such as Dettol Antiseptic Liquid and Dettol Soap that can help mothers have healthier lives and happy homes.”

She went on to add: “Hygiene is very important when it comes to eliminating illnesses, and nursing mothers should always wash their hands and clean themselves up before breast feeding their kids. Reckitt Benckiser is proud to partner with the Save The Children in “The Stop Diarrhea Initiative” (SDI), and educating nursing mothers on proper breastfeeding habits is a part of that.”

Also, speaking at the event, the Chief of Party, Stop Diarrhea Initiative, Save the Children International, Nigeria Chapter, Mr. David Atamewalen stated that “it is good to breast feed babies in the first 6 months after delivery. I appeal to all men to encourage and support their wives to breast feed their babies exclusively for the first 6 months of life. When they do this, their babies will not come down with diarrhea, cholera, and other illnesses.”

On the other hand, the Advocacy Advisor, Save The Children International Nigeria chapter, Mrs. Folake Kuti, elucidated more on the breast-feeding campaign.

“Breast Feeding should be encouraged in organisations. Men are implored to give their support to the success of breast feeding in their various capacities. We are celebrating this year’s Breast Feeding Week to remind us that we still have a long way to go in terms of babies dying of diarrhea and cholera.”

At the event, participants were also taught proper hand washing steps to ensure they stay germ free, and how to clean their environments with Dettol Antiseptic Liquid.

RB’s vision is a world where people are healthier and live better. The company purpose is to make a difference by giving people innovative solutions for healthier lives and happier homes.

Over the years, RB Nigeria has been in collaboration with Federal Ministry of Health, Nigerian Medical Association and Save the Children International to actively and consistently promote the message of good health and hygiene in Nigeria.

SMILE, RenMoney Unveil Financing Initiative for Clients

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Godfrey Efeurhobo MD/CEO Smile Communications Limited
Godfrey Efeurhobo MD/CEO Smile Communications Limited

Smile Communications Limited and RenMoney have announced the launch of a flexible financing initiative in partnership to offer existing and prospective clients of Smile Communications the opportunity to own a Smile 4GLTE device that includes a data plan, especially for individuals and families.

This unique collaboration provides ease and flexibility of payment for everyone to have access to Smile’s SuperFast, SuperReliable quality and affordable internet and voice services. The offer is available to all customer segments.

Speaking on the initiative, Managing Director of Smile, Mr. Godfrey Efeurhobo, said: “Smile is committed to creating opportunities that will enable our customers to enjoy the best broadband internet experience by providing differentiating solutions that will enrich their lives. Explaining further, he said that the initiative was developed with the aim to reducing the burden of acquisition cost on customers, extend connectivity and access to internet to more Nigerians, make quality internet access affordable and empower them to do more and succeed in their respective endeavours.”

Also speaking on the initiative, the CEO, RenMoney Microfinance Bank Limited said: “Partnering with Smile on this project was an obvious choice as it aligns with RenMoney’s objective of providing inclusive, convenient and simple payment solutions. We have, therefore, developed a convenient customer experience that is open to all.  It is something we have a passion for, and we are excited about this partnership to provide access to SuperFast, SuperReliable and affordable 4GLTE service to all Nigerians.”

Acclaimed as the pioneer of 4G LTE technology in West Africa, Smile Nigeria is noted for continuously enhancing services to expand on the existing market offers in a bid to provide real value adding products and services. This aligns with Smile’s global vision and mission to be the mobile broadband provider of choice in its markets, whilst enabling its customers to do and achieve more.

Emirates FA Cup Sponsorship Extended to 2021

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Emirates and the English Football Association have announced a three year contract extension to their successful existing partnership. The agreement will see the tournament continue to be named The Emirates FA Cup through until 2021.

In 2015, Emirates became the title partner of the FA Cup, the world’s most prestigious domestic cup competition.

The partnership between Emirates and the FA’s flagship competition has helped widen the reach to fans around the globe. Just ahead of the semi-finals in April of last year, the airline unveiled an exclusive Emirates FA Cup branded A380, with the logo of the iconic cup adorning both sides of the double-decked aircraft.

The Emirates FA Cup branded aircraft has made its way to the extensive Emirates A380 network, allowing fans from around the world to connect with the competition in a unique way.

The airline also took the coveted Emirates FA Cup trophy on its first-ever trip to Africa with a stop at the airline’s headquarters in Dubai in October 2016. The four day tour through Ghana and Kenya including visits to schools and training centres allowed thousands of football fans in Africa to get a little closer to the competition and gave them the opportunity to be photographed with the popular trophy. There are plans in place to extend the tour to take the Cup to even more cities on the Emirates network in the coming year.

The 2017/18 Emirates FA Cup tournament began on Friday, August 4 and saw 737 teams entering the competition and 185 extra-preliminary games taking place across the country. Last year’s competition involved more than 11,000 players from over 700 teams, playing in matches attended by over 1.8 million fans.

Sir Tim Clark, President of Emirates Airline said:

“We remain incredibly proud to continue our role as the first ever title sponsor of such a prestigious and historic tournament. The spirit of this competition, bringing together both small clubs and Premier League giants alike to face each other before an audience of passionate fans is what drives us to continue our investment in this tournament. Through our support of the Cup, Emirates remains committed to the sport of football and its continued development. We look forward to the future of our partnership and helping to connect fans across the globe to one of the world’s most celebrated sports.”

Mark Bullingham, FA Group Commercial Director added:

“We are delighted to be continuing our partnership with Emirates through to 2021. Working alongside such a well-established and iconic global brand has helped us to make the competition more accessible to fans across the world. With the support of Emirates, last season’s competition reached over 912 million fans worldwide. The partnership will also allow us to continue our investment into the game at all levels. We look forward to continuing to work together to ensure the Emirates FA Cup remains the best loved and revered domestic cup competition in the world.”

The competition continues with the preliminary round on the weekend of 18/19 August and will culminate in a showpiece Final at Wembley Stadium connected by EE on Saturday, 19 May, 2018.

Taxation of Housing in Africa

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The Centre for Affordable Housing Finance (AUHF) in Africa has commissioned a paper on the impact of tax policy on affordable housing in Africa.

The paper will be deliberated at the 33rd AUHF Conference and Annual General Meeting, to be held in Kampala, Uganda, from 17-19 October 2017, with a view to establishing a position for lobbying by members and the AUHF, in their respective countries and across the continent.

Broadly, the paper will provide an overview of taxation frameworks relevant to residential real estate.

‘We are thinking about all forms of taxation: property tax, sales tax, income tax, corporate tax, import duty, estate duties, etc.  Specifically, we wish to understand the impact of current taxation arrangements on affordable housing – its delivery, its trade, and financing, the investment it is able to attract, and ultimately, its cost.  We are interested in both housing for sale (new and resale) and rental, etc.’

Cybercrime Growth Highlights Need for Short-Long-term ICT Education in SA

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The Joburg Centre for Software Engineering’s (JCSE) seventh annual ICT skills survey showed that South Africa continues to lag behind other African countries, such as Kenya, Nigeria and Egypt, in information communication technology (ICT) skills training and an emphasis on the contribution that technology plays in contributing to economic growth.

In the current environment of increasing cybercrime attacks globally, this makes the need to upskill our citizens even more crucial, both at corporate level as well as in our schools.
This is according to Anton Jacobsz, Managing Director at value-added reseller, Networks Unlimited, who says:

“Recent reports from Australia showed that a cybersecurity skills shortage in that country is putting public and private sectors at risk, as there are not enough skilled people to fight cybercrime, and that cybercrime is on the rise in that country. An annual survey showed that almost 60 percent of businesses in Australia had experienced at least one disruptive security breach per month during 2016, as compared to just 23.7 per cent the previous year. This survey shows quite definitively that cybercrime is on the rise in Australia, and we can undoubtedly extrapolate from this the need to be on cybercrime security alert in South Africa also. No country is immune, as the global ransomware cyber-attacks – Petya and WannaCry, in late June and mid-May respectively – recently showed. South Africa experienced disruption in just the same way as European countries and the United States.”
Jacobsz says that, given the increasing risks of cybercrime and the technology disruption being experienced by all industries today, the need to educate is of critical importance. “Industries today need to embrace innovation to grow their business and ensure a constant revenue stream, otherwise they will become, quite simply, obsolete.

Around the world, digital transformation is changing the way that organisations transact, from being manual paper-based transactions to fully electronic or fully digital, and this in turn is opening up cybercrime opportunities.  While we arguably have some way to go, South Africa is following this trend towards increasing digitilisation. It is therefore very worrying to note South Africa’s poor performance as measured by the JCSE’s seventh annual ICT skills survey. There is a clear need to upskill the country’s citizens.”
Jacobsz adds that specialised skills addressing new technologies are highly sought after globally.

“We have seen in Australia that the rising threat level in business and government has sparked a recent hiring rush, with employers offering jobs to IT students from around that country, and notably often before they have even graduated. This, clearly, is not ideal. For South Africa, in addition to in-house internships and mentorships, we would propose that school curricula should include exposure to, and training, of ICT skills for every learner. This should start as early as the country’s foundation education curriculum, which is from Grade R to Grade Three.

“On top of that, the ICT curriculum should ensure that matriculants are job-ready when they leave school. The same holds true for universities and colleges – we want students to be more empowered practically and not only theoretically. In other words, we need a two-pronged approach in ICT skills training and education: upskilling adult employees right now, as well as taking a longer-term approach by looking at the schools and even the tertiary institutions.”

Jacobsz says that, at the same time as South Africa ensures a stronger focus on ICT skills training, we also need to ensure proper remuneration within the industry.

He clarifies:

“When we think about growing ICT skills and with them a strong cyber-security focus in South Africa, we need to guard against a situation in which our brightest and best are poached by overseas companies. This has happened in Australia, where there has been an exodus of expertise. Learning from this, in South Africa we need to craft a situation in which the technology world can assist with job creation and, in turn, ongoing economic development within the country. So not only do we need to train our technology employees, we also need to offer them attractive job opportunities and salaries in order to keep them here once they have graduated.”

Jacobsz says online learning is a necessary tool that should be used in ICT training, both within the workplace as well as in schools.

“In our view, online learning should be viewed as a serious socio-economic investment that results in additional life skills as well as expert skills. Sadly, the reality in our country is insufficient, or indeed in many cases, no hardware, software or accessibility to information technology devices in schools, leading to a further future workforce gap. Added to this is that quality education on how to use technology for everyday use is weak – something we are seeing more and more when recruiting.”
He concludes:

“As well as looking to short-term solutions by supporting employees in-house through internships, mentoring and on-line learning opportunities, we also need to look at our school curriculum. Here, we need to think longer-term, by starting to train learners at school level already. If we do not address the need for ICT training in schools, the cyber skills shortage today is only going to get worse into the future.”

Bank Customers Lost N2bn to e-Fraud in 2016

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Godwin Emefiele CBN Governor
Godwin Emefiele CBN Governor

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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Prof. Umar Danbatta EVC of NCC
Prof. Umar Danbatta EVC of NCC

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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Mrs. Yetunde Ilori Director-General NIA
Mrs. Yetunde Ilori Director-General NIA

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.

Mrs. Yetunde Ilori Director-General NIA
Mrs. Yetunde Ilori Director-General NIA

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.