Dr. Ibe Kachikwu has been removed as Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) following the composition of its Board under Section 1(2) of the Nigerian National Petroleum Corporation Act of 1997, as amended.
Kachikwu, who remains the Minister of State for Petroleum will chair the new Board with a Group Managing Director, NNPC, Dr Maikanti Kacalla Baru and the Permanent Secretary of the Federal Ministry of Finance as members.
Other members included Mallam Abba Kyari; Dr Thomas M.A John; Dr Pius O. Akinyelure; Dr Tajuddeen Umar; Mallam Mohammed Lawal, and Mallam Yusuf Lawal.
Mr. Femi Adesina, Special Adviser to the President on Media and Publicity, Mr. Femi Adesina said in a statement that President Buhari urged the new board to ensure the successful delivery of the mandate of the NNPC, ” and serve the nation by upholding the public trust placed on them in managing this critical national asset.”
Kachikwu Removed as NNPC GMD, Remains Minister
WorldStage Economic Summit 2016 to Address Unemployment Challenge
With a total of 22.4 million Nigerians unemployed or under‐employed out of 76.9 million total labour force, Worldstage Economic Summit (WES) 2016 coming up in Lagos from September 7- 8, 2016 is expected to address the unemployment challenge in African biggest economy.
According to Mr. Segun Adeleye, President/CEO, World Stage Limited, ‘the alarming rate of unemployment in Nigeria is not only of great concern to the three tiers of government, but also to the private sector and other critical stakeholders of the economy on job creation. While some people see it as an indictment on the educational system that seems to be churning out ‘unemployable graduates’ it is also being seen as an economic deficiency, with the economy having a limitation of the labour force it can sustain by its productivity.”
He said Nigeria’s unemployment rate of 10.4% represents about 14 percent of global unemployment in fourth quarter 2015, the 7th highest in the world with only Kenya, Congo and Djibouti having worse rates in Africa.
“This should be embarrassing when compared with countries such as Qatar (0.2%) unemployment rate, Cambodia (0.3%), Belarus (0.5%), Thailand (0.8%), Benin (1.0%), Madagascar (1.2%), Laos (1.40%) and Guinea Bissau (1.80%),” he said.
He said the statistics on job loss in Nigeria dropped by only 1.29% in Q4 2015 at a period when oil price crashed by 65% could only show that there are other inherent factors outside oil that shapes the labour market, which would be reviewed at the summit.
On how an economic summit can address unemployment challenges, he said: “We are in an era where Nigeria’s economic problem can no longer be left in the hands of government to fix alone. There are organisations and experts that have the knowledge of how to solve economic challenges of any kind, but in most cases, they are either not talking at the right forum, or they are not being heard. At WES 2016, the government side is going to be represented by ministers, members of the National Assembly, heads of regulatory agencies, CEOs of public corporations, top officials from state governments; and they will be interacting with representatives of the organised private sector along with local and foreign experts, to discuss series of the sub-themes through which the problem of unemployment in Nigeria will be tackled.”
He made reference to the challenges facing state governments to the extent that they can no longer pay salaries as at when due, saying these could be addressed with the right concept of how to explore economic potential to create private sector jobs.
“With about 65 per cent drop in oil price since 2014, Nigeria’s main source of income, the revenue allocations to the Federal Government, States and the Local Governments have dropped drastically with most states now finding it almost impossible to pay workers’ salaries. This has become one of the greatest challenges facing the Nigerian economy, as the elected governments are becoming aware that they may not be able to deliver the electoral promises and dividend of democracy if an urgent solution is not found,” he said.
The expected participants at the summit are drawn from the Presidency, National Assembly, MGAs, State Governments, OPS- Oil and Gas, Banking, Insurance, Maritime, Aviation, Mining, Agriculture, Hospitality & Tourism, Entertainment, Construction, Power, ICT, Education, Transportation, Local and Foreign Investors, Media and Other Relevant Stakeholders.
Samsung Plans $1.2bn Investment in IoT Tech
Samsung Electronics has announced plans to spend $1.2 billion over 4 years for U.S. based Internet of Things (IoT) R&D and investments. This will be led by the Samsung Strategy and Innovation Center, Global Innovation Center and Samsung Research America.
Samsung Electronics Vice Chairman & CEO, Dr. Oh-Hyun Kwon called for his peers to “start talking and thinking differently about IoT,” with a human-centered approach, embracing the life-changing possibilities of the technology and working together to bring these benefits to society at-large.
“I am excited to show how we are moving IoT to the center of our strategy and am delighted to announce that Samsung is planning to spend $1.2 billion in U.S.-centered IoT investments and R&D over the next 4 years,” said Vice Chairman Kwon.
In his keynote Vice Chairman Kwon offered industry and policymakers two principles in addition to a ‘human-centered’ approach: to be open and collaborative.
“If we want innovators everywhere to make use of IoT, we must make sure all tools are open to them. This means technologies that connect to each other, because we know that boundaries around technologies hold back innovation and scale,” the Vice Chairman said.
He also warned that sector-specific regulations would inherently fragment the development of IoT, impeding devices and platforms from connecting to each other.
As the IoT ecosystem is by nature connected and interwoven, collaboration is vital to promoting this level of openness and interconnection. In this vein, Vice Chairman Kwon urged attendees to pursue cross-sector dialogue and partnerships, and announced Samsung’s role as a co-founder of the newly launched National IoT Strategy Dialogue.
The Dialogue, to be hosted by the Information Technology Industry Council (ITI), will design a National IoT Strategy as a tool to inform policymakers on enabling the technology to deliver benefits for individuals, communities, innovators and the U.S. economy.
This announcement, Vice Chairman Kwon reinforced, “is not about the first steps – that’s because IoT is already happening all around us. It’s time to imagine the transformative potential of IoT for our societies – and learn how to achieve its human, social benefits at scale.”
The event is part of Vision for Tomorrow, Samsung’s recently launched public affairs platform for cross-sector collaboration around issues affecting the policy dialogue in the U.S. and around the world.
Africa, ME Wearables Market Rose 65.3% in Qtr 1
The Middle East and Africa (MEA) wearables market experienced a 65.3% year-on-year growth in shipments in the first quarter of 2016, according to global technology research and consulting firm International Data Corporation (IDC). IDC tracks seven major countries across MEA, and shipments into these countries totaled 419,925 units in Q1 2016.
“The growth of the wearables market provides a rare ray of light amid an overall downturn for personal computing in the region,” says Nakul Dogra, a Senior Research Analyst for Personal Computing, Systems, and Infrastructure Solutions at IDC Middle East, Africa, and Turkey.
“This growth has been spurred by a number of factors, including declining average selling prices, new product launches, the entrance of lower-cost wearables, and the introduction of sleeker designs.”
Smart wearables, which are classified as devices capable of running third-party applications, are still finding their feet in the market as many consumers continue to view the devices as too expensive for the features and functions they offer. As such, most of the growth in this segment of the market stems from the increasing popularity of smart watches.
Basic wearables, which are not capable of running third-party applications, continue to dominate the overall MEA wearables market with 71% unit share versus 29% for smart wearables. This dominance can be attributed to the growing popularity of fitness bands, which have been flooding into the market for a while now, proving to be a big hit with consumers.
The future of the MEA wearables market looks bright with IDC forecasting a compound annual growth rate (CAGR) of 20.1% for the 2016–2020 period. This growth will primarily be driven by increased adoption of smart watches and wristbands as these devices evolve to become more sophisticated than simple health and fitness trackers.
“The growth will be further augmented by the launch of new wearable products in the clothing, eyewear, earwear categories, among others,” says Fouad Rafiq Charakla, a Senior Research Manager for Personal Computing, Systems, and Infrastructure Solutions at IDC Middle East, Africa, and Turkey.
“IDC expects vendors to step up their new product launches in the MEA market as share gain becomes the name of the game. We also anticipate new operating systems and versatile pools of applications to emerge in order to support all these new devices.”
These are exciting times for the wearables market, with niche and mass-market introductions set to change the way we interact with technology in our day-to-day lives.
To keep pace with the changes taking place in this fast-moving market, IDC has launched its Worldwide Quarterly Wearable Device Tracker, which helps vendors looking to enter this market, promote new product developments, or accelerate the growth of their wearables divisions.
The tracker includes details on products, vendors, and technology trends at both global and country lev-els, as well as historical market data and five-year forecasts.
The report also provides valuable insights into the adoption of core wearable features, such as form factor, connectivity, sensors, operating sys-tems, and applications, and offers invaluable assistance to tech firms looking to develop successful long-term business strategies for wearable devices.
BREAKING NEWS! Skye Bank CEO, Top Management Resign Enmasse!
Mr. Timothy Oguntayo, Group Managing Director/CEO of Skye Bank Plc and top management staff of the bank have allegedly resigned enmasse to avoid sack by the Central Bank of Nigeria [CBN] over the alleged liquidity crisis in the bank.
A report by Sahara Reporters says the mass resignation was to pre-empt a decision by the CBN to sack the Board and Management of commercial banks showing signs of distress in the country.
For instance, on January 22, 2O16, the CBN sent a letter [Ref: BSD/BCS/CON/SK/O1/O32] entitled “RE: Insider Credits” to the Group MD/CEO of Skye Bank in which the bank was granted an extension till December 31, 2O16 to resolve its insider credits and related liquidity issues.
The CBN letter, which was signed by Benjamin A. Fakunle for Director of Banking Supervision, read in part:
“We refer to your letter dated December 1O, 2O15 and our exchange of correspondence on the above subject [Insider Credits] and write to inform you that the Central Bank of Nigeria has granted an extension of time till December 31, 2O16 to enable you bring your insider related credits within the stipulated regulatory maximum of 1O% of your paid-up capital per director, including his/her related parties and 6O% paid-up capital for total related credits in line with our circular BSD/9/2OO4 on Large Exposures and Connected Lending.”
African Union Unveils All-Africa Passport to Boost Travel, Trade
While is U.K. was busy separating from the European Union, Africa wants to become more unified with the introduction of an all-Africa passport. The idea, first approved in 2014, will launch at the 27th AU Summit in Rwanda this month.
The electronic passport is proposed as an anecdote for dissolving border restrictions, thus building greater opportunities for trade within the continent, in hopes of boosting the overall economy.
Anyone with a A.U. passport would be allowed to travel freely within the union’s 54 countries without a visa. Government officials and heads of state at the A.U. headquarters in Ethiopia, will be the first to use the all-Africa passport, which is expected to expand to all citizens in 2018.
Despite the economic benefits, the passport could have an opposite effect given the threat of terrorism.
The Motherland continues to be vulnerable to increased acts of terror, with recent attacks in Nigeria, Somalia, Kenya, and the Ivory Coast.
— Latifah Muhammad,Vibe
Olashore School Graduates Leaders to Tackle 21stCentury Challenges
Olashore International School graduated its final year students whom had undergone all necessary trainings in character and learning to become leaders in a changing world in order to fit into the dynamic global society in the 21st century. This valedictory took place at the school premises at lloko – Ijesha, Osun State recently.
The Principal rated the graduating set uniquely.
His words: “The graduating set has been outstanding in their IGSCE exams and in initiating good ideas. They’ve been very good academically. In this graduating set, we have been able to see outstanding leadership skills. Once again, the selected prefects have excelled. They took on the role of leaders in the school and developed new ideas. They initiated the Olashore School Award. The event which they planned and organized allowed students to identify role models within the school and celebrate them. This commitment to the Olashore Standard is something that has been evident not just in the prefects but across the year group. He commended the graduating students, while reiterating that each graduating set gets better than the other and that this set has done much more than expected.”
He pointed out that morals of Honesty, Service and Honour has been instilled in each student to become a better person, and to represent the school well anywhere they find themselves. “If you notice the Olashore Alumni across the world, they take up leadership positions wherever they are, because the leadership traits had been instilled in them, while also instilling morals of Honesty, Service and Honour, just like we’ve done to our present graduating set. Value runs across in the school and is encapsulated in everything we do. Olashore has always impacted leadership skills in her students; we only thought it wise to give it a structure, an academic framework and a more solid background.”
He however advised them to maintain the morals values that have been instilled in them and share with the people they meet as they begin the next stage of their lives.
On his part, the Chairman Board of Governors, Prince Abimbola Olashore, stated “The School has improved from what it used to be last year. We are always pleased to see physical improvement in our infrastructure; it shows a continuous investment in our facilities. We strengthened our staffing, employed the services of a new vice-principal, and strengthened our technology through the distribution of one on one iPads for learning starting from Year 7. The school is making a progress in a more strategic way which is important in learning outside the classroom. The evidence that we produce world class students is that they are seen as outstanding in their work places and their employers are usually proud of them. We’ve given all our students, including the graduating set, the foundation and platform to help build their confidence anywhere they find themselves. Even as they graduate, I encourage them to be confident of the education they’ve gotten from the school.”
About Olashore International School
Established in 1994, on 60 acres of land, Olashore International School is a co-educational school which offers high quality education in a wide range of subjects at Junior Secondary and Senior Secondary along with a University Foundation Programme in partnership with Lancaster University and the Institute of Education, Dublin.
Over the past 20 years, the school has succeeded in developing a cluster of world class services around the school including a first class hotel, a golf course and a leadership training centre that all combine to give the school a unique identity.
The school is particularly appealing to discerning Nigerians at home and abroad, as well as expatriates residing in Nigeria, who desire a school with a strong value system, demonstrable track record and a clear sense of purpose.
Firms to Invest $6.6bn in Internet of Things in 2O16
In an update to its Worldwide Semi-annual Internet of Things Spending Guide, International Data Corporation (IDC) forecasts that organisations in the Middle East and Africa (MEA) will invest more than $6.6 billion in Internet of Things (IoT) hardware, software, services, and connectivity in 2016.
The global ICT consulting and advisory services firm expects IoT revenues in the region to increase at a compound annual growth rate (CAGR) of 21.3% over the next four years to total more than $14.3 billion in 2020.
Manufacturing and transportation are the vertical industries leading the way in terms of IoT investment in MEA, with both expected to spend an estimated $1.1 billion each in 2016. The next largest industry, utilities, is expected to see IoT investments of almost $800 million this year. The IoT use cases receiving the greatest levels of investment from MEA organisations across these three industries are:
• Manufacturing Operations, which supports digitally-executed manufacturing, or how manufacturers use intelligent and interconnected input/output tools (sensors, actuators, drives, vision/video equipment etc.) to enable different components in the manufacturing field (e.g. machine tools, robots, conveyor belts) to autonomously exchange information, trigger actions, and control each other independently.
• Freight Monitoring, which uses RFID, GPS, GPRS, and GIS technologies to create an intelligent, Internet-connected transportation system. This system carries out the intelligent recognition, location, tracking, and monitoring of freight and cargo by exchanging information and real-time communications via wireless, satellite, or other channels.
• Smart Grid (Electricity), where non-smart meter field devices owned by the electric utility are used to control and optimize power flow to ensure efficient, safe, and reliable service. The devices are used throughout the electricity distribution grid for tasks such as line sensing, substation automation, and feeder & line equipment control and optimisation. Utility owned in-home devices are included in this category when used for grid operations.
Looking across all industries in the MEA region, freight monitoring will receive the greatest level of IoT investment throughout the forecast period, followed by smart grid (electricity) and manufacturing operations.
In addition to these use cases, remote health monitoring, smart buildings, and smart home concepts will see significant levels of investment over the next few years. The IoT use cases that will experience the greatest revenue growth over the 2016–2020 forecast period are smart buildings, insurance telematics, and smart grid (gas).
“IoT solution deployments across MEA will continue to see increased adoption rates, both in the public and private sectors, as stakeholders begin to realize an immediate return on their investments,” says Wale Babalola, a Research Analyst for Telecommunications, IoT, and Digital Media at IDC Middle East, Africa, and Turkey.
“In addition, the growing development of purpose-built IoT platforms and the continuing proliferation of smart devices will serve as catalysts for IoT adoption across the region’s industry spectrum.”
While manufacturing and transportation will lead the way in terms of overall IoT investments in the MEA region, six industries will see IoT spending levels increase by more than 100% over the 2016–2020 forecast period – construction, consumer, insurance, manufacturing, retail, and telecommunications. Cross-industry investments, which represent use cases common to all industries, are also forecast to see revenues more than double during this period.
“A use case represents a detailed composition of a technology investment that is made to produce a set of end-user benefits,” says Marcus Torchia, Research Manager for IoT within IDC’s Customer Insights and Analysis team.
“The long-term opportunity for IoT vendors is helping to identify and create immediate and residual benefits for end users through their technologies. We see strong opportunities across many industries. For example, in highly instrumented verticals like manufacturing and transportation, large data sets are used to optimize operational processes and extend the life of high-capital cost assets. In other sectors like healthcare and consumer, IoT technology is being used to produce benefits that improve quality of life.”
The Worldwide Semiannual Internet of Things Spending Guide forecasts IoT revenues for 12 technologies and 47 use cases across 20 vertical industries in eight regions and 52 countries. Unlike any other research in the industry, the comprehensive spending guide was designed to help vendors clearly understand the industry-specific opportunity for IoT technologies today.
DHL Delivers Black Rhino Eliska to Africa
The world’s leading international express delivery provider, DHL, has completed another landmark transportation project with the delivery of a black rhino from its birthplace in the Czech Republic to its natural homeland in Tanzania.
Three-year-old female Eliska was moved to a natural park in Tanzania as part of an ongoing conservation project run by the George Adamson Wildlife Preservation Trust, aimed at helping endangered animal populations to grow and prosper in their natural habitat.
“The delivery of Eliska to Tanzania continues a proud tradition at DHL Express of supporting international animal conservation efforts,” said Ken Allen, CEO, DHL Express.
“We were very excited to have the opportunity to transport this beautiful animal home to Africa and to play our part in these critical efforts to help revive endangered Eastern black rhino populations. Complex projects like this, where failure is simply not an option, also allow us to showcase the power of the DHL global network and the expertise of our certified international specialists.”
Eliska’s move was overseen by an international DHL team, comprising around 40 specialists in areas ranging from ground transportation and aviation to customs clearance and certification across more than five countries.
The 900 kilogram female was transferred from ZOO Dvur Kralove in the Czech Republic, where she was born in 2012, tothe main DHL European Hub in Leipzig, Germany.
She was then loaded on to a dedicated 28-ton Boeing 757-200 freighter, specially modified for animal transport, and flown more than 6,500 kilometers directly to Kilimanjaro Airport in Tanzania, from where she was transferred by truck to her new home.
Along the way, she was accompanied and monitored by a team of support staff, including Dr. Pete Morkel, one of the world’s leading black rhino veterinarians. Five containers of food and water supplies were also loaded for the journey.
“We were delighted that DHL was able to support us with this project, as we were only prepared to entrust Eliska to partners who could absolutely guarantee a safe and seamless move,” said Tony Fitzjohn OBE, Field Director, The George Adamson Wildlife Preservation Trust.
“Having the support of anexperienced team of international transport specialists allowed us to focus without any distraction on the comfort and well-being of Eliska and to ensure that she had the best possible introduction to her new life in Africa.”
Eastern black rhinos are one of the most endangered mammal groups, with large-scale poaching in the late 20th century leading to a significant decline in black rhino populations in Africa.
There are estimated to be about 800 in the world today. ZOO Dvur Kralove, where Eliska was born, has a strong record of breeding Eastern black rhinos, with 43 calves of the species born to date.
“Eliska’s departure is a bitter-sweet moment for ZOO Dvur Kralove. We are sorry to say goodbye to one of our much-loved animals, but at the same time, we are extremely gratified to have played a part in this important conservation project and excited to see how she adapts to her natural habitat,” said Přemysl Rabas, Statutory Director of ZOO Dvur Kralove.
“The build-up to her move to Tanzania has involved years of careful preparation, and we are sure that – with DHL – sheis in the right hands for the journey.”
DHL has supported a number of major conservation projects in recent years, including the delivery of three black rhinos from the U.K. to Tanzania in 2012 and the delivery of two rare Sumatran tigers from Australia and the U.S. to London Zoo in the same year as part of a breeding program.
A 2013 project to transfer two giant pandas from China to a Belgian sanctuary resulted in the ‘perfect delivery’ in June 2016, when the female gave birth to a panda cub.
Hennie Heymans, CEO, DHL Express Sub-Saharan Africa adds, “As facilitators of global trade, it’s fantastic that we can use our logistics expertise for such an important conservation project, and we trust that Eliska will flourish in her new home in Africa.”
Five Personal Technologies That Will Disrupt Your Business
Personal technologies such as wearables, immersive virtual and augmented reality, sensors such as those found in Internet of Things (IoT) applications and the next wave of mobile apps will soon have a major impact on every business.
Speaking at the Gartner Business Transformation & Process Management Summit in Sydney, Brian Blau, Research Vice-President at Gartner, gave his top five picks for personal technologies that will break away from the hype and prove to be an integral component in business over the coming years.
1) Immersive Augmented and Virtual Reality
As was apparent at major technology shows like CES this year, device vendors and big platform owners such as Google and Microsoft are investigating how to exploit immersive technologies like augmented reality (AR) and virtual reality (VR) to expand the experiences associated with existing device categories (notably smartphones) and to find opportunities among new ones (like head-mounted displays).
While consumer adoption of VR outpaces enterprise adoption, AR is seeing business adoption first.
“The potential is huge in both consumer and enterprise environments,” Blau said. “An immersive user experience enables deeper workplace engagement and can open the door to behavior change,” Blau said.
For example, logistics giant DHL has been able to improve warehouse operations through the use of advanced wearable displays and augmented reality. Head mounted displays (HMDs) replace the use of handheld scanners and paper pick lists, improving efficiency, reducing errors and making the workplace more enjoyable.
2) Wearable Devices
From head-worn cameras and displays, sensors and activity trackers to smart shoes and socks, wearables are expanding the body’s potential in business. The smartwatch will become mainstream and new solutions and platforms will drive enterprise adoption.
Gartner forecasts that annual sales of wearable devices will exceed 227 million by 2020, up from 88 million this year. Form factors will move from bulky to inconspicuous and usability will improve as devices begin to anticipate user needs and wants.
3) Personal IoT Sensors
By the year 2021, one million new IoT sensor devices will be purchased every hour of every day.
New devices will open up new opportunities for business, for example, predictive maintenance and support for autonomous “things”. Gartner predicts that by 2018, six billion connected “things” will be requesting support.
4) Virtual Personal Assistants and Bots
Mobile app usage is stabilising. Downloads have plateaued as users stick with tried-and-tested apps.
Apps won’t vanish anytime soon. However, their interfaces will fade and new interaction techniques will take their place. Apps currently offer siloed interactions, but the next wave will offer an integrated experience, Mr. Blau said.
Future apps will report to us via our virtual personal assistant (VPA), or apps will simply be hidden in the background, and their interfaces will be more seamlessly integrated into an overall flow of content.
The VPA will become the vital link for consumers and, later, business users to simplify access to their apps, data and content. Businesses should evaluate VPAs for their potential to provide better customer experience.
5) Advanced Camera and Vision Technologies
In 2016 and 2017, Gartner expects cameras to remain a top differentiation priority for smartphone vendors. The incorporation of advanced autofocus, wide-angle lens and, above all, multi-lens capabilities to be a key trend this year, delivering new experiences.
There are many potential applications in the enterprise. For example, customer digital assistants in retail outlets will recognise individuals by face and voice across channels and partners, proving opportunities to enhance the in-store experience.
At the same time, consumer video consumption is at all-time high, especially on mobile devices. For the enterprise, the revolution in 360-degree and multi-lens cameras could improve collaboration through shared virtual surfaces and immersive remote meetings, while video and scene analytics will decode meaning and add more value to video content.
Instead of seeing consumerisation of technology as a force happening to the organisation, Gartner recommends taking a proactive approach. Set up a process for evaluating personal technologies and identify opportunities to improve workplace process and actions.
Efekoha Elected New NIA Chairman
Mr. Eddie Efekoha, Managing Director/CEO, Consolidated Hallmark Insurance Plc, was yesterday unanimously elected 22nd chairman of the Nigerian Insurers Association [NIA]at the 45th Annual General Meeting [AGM] of the Association in Lagos.
NIA is the official umbrella body of insurance companies operating in Nigeria.
In his acceptance speech, Efekoha said his administration will focus on four key areas namely:
· Stakeholders’ engagement with policy makers at the Judiciary, the Legislature and other relevant Agencies of the government, as well as regulatory institutions and industry players.
· Enforcing market discipline amongst key industry players which will involve engagement with colleagues and partners in the industry to encourage market development and continuity in the industry.
· Review of the NIA constitution to make it more dynamic in response to the changing business environment.
· Other current projects embarked upon by the Association most important of which is the NIA Building Project. We will deal with these matters to the best of our abilities but where we make mistakes may you find a space in your heart to forgive us.
The new chairman who unveiled the theme of his administration as “Sustainable Market Development Through Stakeholders Engagement” called for unity of purpose to tackle emerging challenges in the operating environment.
“We are fully aware that the there is a need for us to come together to save our industry now more than ever. The economic space is shrinking and businesses are facing greater threats; and the insurance sector is not insulated from developments in the global economic space. “
He said this is the right for insurers to respond quickly to the changing dynamics of the market space so that “we do not go extinct in the face of the global pressures on our businesses. Indeed there is no better time than now to strengthen the Association and reposition it for the task ahead.”
Efekoha promised that the NIA will continue to remain true to its legacy as an institution that exists to champion the cause of the insurance industry while operators will ensure that the founders’ sense of purpose will be upheld by us at all times.
Investiture Of Mr. Efekoha As The New NIA Chairman
Royal Exchange Reports N1O.7bn Premium Income in 2O15
Royal Exchange Plc has announced that it generated a Gross Written Premium of N10.7 billion from its business activities for the financial year ended December 31, 2015, representing an increase of 14 percent over the figure of 2014, which stood at N9.4 billion.
Net Premium Income for the period amounted to N8.4 billion, with a modest growth of 9 percent over that of Year 2014, which stood at N7.8 billion. Total Assets also increased to N26.525 billion, up by two percent from the preceding year.
Total claims paid for the period under review amounted to N3.0 billion, an increase of 26 percent from 2014, which was N2.4 billion.
The Group Managing Director of the company, Auwalu Muktari, stated that despite the very harsh operating environment in the year under review, the group was able to grow its top-line figures by participating in large-ticket financial transactions, as well as playing in the retail insurance market, which shall be a key growth driver in the years ahead.
According to Muktari, “Royal Exchange Plc will in the years to come, continue to be an aggressive player in the retail market in Nigeria and will be looking at different strategies to increase its product offering and visibility in the marketplace, while not losing track of the corporate market, where the returns and margins, are dwindling, yearly.”
The GMD noted that the bottom-line results of the group did not turn out as expected, due to increase in operational costs, branch expansion, acquisition of new business solutions to improve its internal business processes, as well as thin margins on investments.
To stem this tide, Muktari said that “the company has implemented various cost optimisation strategies and measures which shall guarantee profitability in both the current financial year and the years ahead.
He further added that the Group will under some form of restructuring, to enable it streamline its operations and processes and make it more responsive to the changing needs and demands of its clientele.
About Royal Exchange Plc
Royal Exchange Plc started operations in 1921 and continues to be driven by innovation and a determination to offer services that are of exceptional value to its customers.
Following the recapitalisation exercise in 2007, the company was reorganised into a group structure comprising Royal Exchange Plc as the holding company and five strategic subsidiaries namely:
§ Royal Exchange General Insurance Company Limited (Non-Life Insurance Services)
§ Royal Exchange Prudential Life Plc (Life Assurance Services)
§ Royal Exchange Finance and Asset Management Limited (Financial Advisory Services)
§ Royal Exchange Healthcare Limited (HMO and Health Insurance)
§ Royal Exchange Microfinance Bank Limited (Banking Services)
FOR THE RECORD
ACCEPTANCE SPEECH BY THE NEWLY ELECTED CHAIRMAN OF THE NIGERIAN INSURERS ASOCIATION (NIA), MR. EDDIE EFEKOHA, ON THURSDAY, JUNE 30, 2016 AT THE METROPOLITAN CLUB, KOFO ABAYOMI STREET, VICTORIA ISLAND, LAGOS
On behalf of the Governing council and the entire membership of the Nigerian Insurers Association, I thank you all for finding time to be part of the events of today.
My appreciation also goes to my colleagues in the Governing Council and all member companies of the Nigerian Insurers Association for their confidence in my ability to lead them which they have expressly proclaimed by my election as the 22nd Chairman of the Nigerian Insurers Association.
I remain truly grateful to you all. I want to note that my two years sojourn as the deputy chairman of the Association gave me ample opportunity to appraise and fully understand the dynamics and workings of the system.
Therefore, I consider my election as a call to duty; a call I am prepared for and willing to undertake. Leadership is all about shared vision and responsibility. I want to assure you that during my tenure, I intend to build on the achievements of my predecessors in office.
I am aware of the fact that the assignment is daunting therefore I call on all my colleagues to join me to reflect on our past, critically assess the present and look forward to the future with greater hope and enthusiasm.
We are fully aware that the there is a need for us to come together to save our industry now more than ever. The economic space is shrinking and businesses are facing greater threats; and the insurance sector is not insulated from developments in the global economic space.
It therefore behooves on us to respond quickly to the changing dynamics of the market space so that we do not go extinct in the face of the global pressures on our businesses. Indeed there is no better time than now to strengthen the Association and reposition it for the task ahead.
Permit me at this juncture to take us back to My Quest, in the Call to Service pact entered into with you, distinguished members of the Association two years ago when I sought your mandate for the position of Deputy Chairman.
We have since then commenced execution of key aspects of the service pact with my Immediate Past Chairman and other members of the governing council.
These include among others:
· A positive public image for the insurance industry
· Collaboration with industry regulators to ensure higher insurance contribution to national GDP Better industry friendly legislation
· Continuous digitalization of operations
· Enforcement of the compulsory insurance offerings through relevant public agencies
A lot of efforts and resources have been deployed in the recent past by boththe Nigerian Insurers Association, industry players and regulators at large to ensure the actualisation of the above objectives. We shall continue to intensify efforts at Council level to ensure the realisation of these goals.
Ours is indeed a collective effort. My promise is to ensure full actualisation of the projects we jointly embarked upon in the past, whilst ensuring that many more that will contribute to the elevation of the industry to new heights are embarked upon as I provide the necessary leadership.
It is in the light of the above developments that I have decided to commit the period of my chairmanship to address four critical areas in line with the theme of my administration which is: “Sustainable Market Development Through Stakeholders Engagement.”
These programmes are:
· Stakeholders’ engagement with policy makers at the Judiciary, the Legislature and other relevant Agencies of the government, as well as regulatory institutions and industry players.
· Enforcing market discipline amongst key industry players which will involve engagement with colleagues and partners in the industry to encourage market development and continuity in the industry.
· Review of the NIA constitution to make it more dynamic in response to the changing business environment.
· Other current projects embarked upon by the Association most important of which is the NIA Building Project. We will deal with these matters to the best of our abilities but where we make mistakes may you find a space in your heart to forgive us.
To prevent mistakes from occurring we will need your prayers, support and wise counsel always. I wish to acknowledge and commend the National Insurance Commission under the leadership of Alhaji Mohammed Kari, the Commissioner for Insurance, for instituting the Insurers’ Committee, a platform for dialogue between the regulator and regulated entities for the growth of our industry. Every leader is born for his own time!
It is my opinion that our industry at this time will benefit a lot from the openness to dialogue of the Commission as a means to addressing some of the ills of the market today for long term sustainability, growth and ease of regulation.
This is in line with the theme of my chairmanship and therefore I will not hesitate to encourage our members to participate actively as they have done since the inauguration of the Committee.
I want to restate that the NIA has and will continue to remain true to its legacy as an institution that exists to champion the cause of the insurance industry and we will ensure that the founders’ sense of purpose will be upheld by us at all times.
We must acknowledge the contributions of all the past Chairmen of this Association whose far-sightedness and courage has ensured that we stand here today. The strong foundation they have laid has given us the privilege to build on their successes.
Ladies & Gentlemen, friends and colleagues, on behalf of the Governing Council, I wish to restate our commitment to the ideals of this Association. I am truly honoured to lead in this remarkable, rewarding, exciting and uplifting journey.
I ask again for your support, encouragement, advice and prayers. I thank most profoundly, my colleagues in the Governing Council for their confidence and faith in me, the Nigerian Insurers Association and the insurance industry in Nigeria. Together we will take the NIA and the insurance industry in Nigeria to greater heights.
God bless Nigeria God bless Insurance Industry of Nigeria God bless the Nigerian Insurers Association.
Thank you all for your kind attention.
Eddie Efekoha
Chairman, NIA
Ecobank May Exit Nigeria as Group Reviews Business Model
Ecobank Transnational Incorporated is considering exiting some countries where it is presently facing decline in profit margin as part of holistic review of its business model going forward.
This followed a declaration made by Ecobank’s Chairman, Emmanuel Ikazoboh and reported by Reuters thus: “In the last pocket of least promising countries, we really want to take a decision as to whether we continue to operate in those markets,” said Ikazoboh.
But the bank quickly reacted to the statement of its chairman, saying it does not plan to close any of its subsidiaries. It confirms that “Ecobank is currently reviewing its business model… However, this does not in any way translate to the planned closure of any of subsidiaries.”
Despite the statement, the Group admitted that under its revision process, it could exit some products from its markets or close some branches, but in case would fully exit any country as this is highly complex.
“The closure of any Ecobank subsidiary would require a thorough situation analysis and approval by the Board of Directors and shareholders of Ecobank,” said Uku.
Ecobank is present in 36 African countries and is currently the largest group across the continent.
…Ecobank Raises Remuneration of EDs by 9% after Sack of Workers
Meanwhile, in its annual report, Ecobank revealed that while reducing wages of its personnel by 9% in 2015 to $525 million from $576 million, it paid its executive directors $7.3 million. This figure which includes salaries and short-term benefits rose by 9% compared to 2014’s $6.6 million.
Ecobank recently sacked hundreds of staff in Nigeria, claiming it was a cost reduction measure in view of declining profit.
The Group explained the increase by the need to draw more talents, as well as protect its executives against some of the regulations implemented in the markets where it is present. The group takes into account governance regulations that hold Board members individually and collectively responsible for its actions.
“Consistent with Ecobank’s objective of being an employer of choice in our markets and attracting the best talent, Senior Executives are compensated with a mix of fixed compensation (salary, benefits and pension) and variable compensation (bonuses and share options scheme),” said Ecobank in its report.
In opposition to executive directors, non-executive directors of the Board of Administration received a total remuneration of $1.4 million, down 4% compared to 2014. Non-executive directors receive fixed fees of $100,000 per annum for services on the Board of ETI. The Chairman receives $150,000.
In addition, Directors receive sitting fees for attendance at Board and for attendance at Board and Board Committee meetings.
However, the group added “non-executive directors do not receive any short-term or long-term performance incentives”. Some of them which are shareholders will nevertheless receive part of the $48.2 million dividend recommended in 2015.
Let’s recall that the group’s performances, provision excluded and at constant exchange rates, were not strong. Net global profit generated in 2015 across the group’s various representations was $420.3 million against $530.2 million in 2014.
According to its consolidated financial statements, the Group’s profit after tax stood at $107.5 million against $394.7 million the previous year, thus slumping by 73%.
Remuneration should keep decreasing in 2016, as Ecobank plans to, in various markets, close some of its agencies and retrieve some of its products from these markets. This should lead to job cutting.
–Idriss Linge