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Only 3m Nigerians Have Insurance Policies, says Adeosun

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Mrs.  kemi Adeosun, minister of Finance, on Monday said that only three million out of 180 million Nigerians possessed insurance policies to protect themselves from uncertainties.

Adeosun, who made the disclosure at the ongoing 2017 National Insurance Conference (NIC) in Abuja, noted that insurance was playing critical roles in the economy.

The theme of the three-day conference is: “Nigeria Open for Business.’’

Represented by Alhaji Mammud Dutse, Permanent Secretary in the Ministry of Finance, Adeosun said that insurance was facilitating investments by reducing the amount of capital and savings needed by individuals, corporations and agencies to fight unforeseen losses.

She said that total insurance premiums grew from N75 billion in 2005 to over N300 billion in 2016 and contributed approximately 0.7 per cent to the Gross Domestic Product.

She said that the figure was less than the African average of 3.3 per cent and the global average of seven per cent.

The 2017 event would be the third since the conception of the Insurance Industry Consultative Council (IICC) in 2015. IICC is an amalgamation of all the constituent arms of the insurance industry, which includes the Nigerian Insurers Association, Nigerian Council of Registered Insurance Brokers and Institute of Loss Adjusters of Nigeria.

The minister lamented that the insurance industry was facing the challenge of low-level penetration.

“This means insurance from writing more premiums from millions of Nigerians can provide finance for our long-term economic growth for the country’s recovery.’’

She said that practitioners must be willing to do more to make insurance a giant industry to look up to, adding that distribution channels must be innovative and that new products should be developed to attract the populace. She argued that to achieve conclusive growth, insurance must be deployed to rural areas.

“Deepening insurance penetration to the rural areas must include, improving technical capacity to meet the emerging market trends.

“The best way to promote insurance is to incorporate both individuals and corporate entities into the insurance market,’’ Adeosun said.

The minister said that the Federal Government would ensure that its economic reforms supported the growth of the insurance industry, adding that many foreign investors had indicated interest to invest in the sector.

“There is also a high level of ownership of insurable assets in Nigeria, despite the economic situation. “We expect that industry reforms will continue to drive investments and new market entries.

“Foreign investors have shown great interest in the Nigerian insurance sector by entering into the market and progress can be seen in the introduction of new insurance products in the growing mortgage and housing sector.

“To concentrate on the progress being made so far, Federal Government will always play its part to ensure that government assets are properly insured,’’ she said.

Also speaking, the Minister of Trade and Investment, Dr Okechukwu Enelamah, said the best way to move the industry forward was for the practitioners to accept responsibilities.

“The practitioners need to work hard to ensure that many Nigerians are dragged into insurance net.

“The practitioners cannot compare themselves to entertainers,’’ Enelamah said.

Earlier, Alhaji Mohammed Kari, the Commissioner for Insurance, National Insurance Commission (NAICOM), commended the Federal Government for its support for the industry.

Kari described insurance as promoter and stabiliser of economic and commercial activities.

He said the commission had commenced the review of processes which included timelines and deadlines.

Kari said that the growth of the industry was hindered by unripe products, religious beliefs and wrong perception.


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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