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Analysts Call for Mergers and Acquisition Among Insurers
With the recent Central Bank of Nigeria (CBN) directive that universal banking would be phased out soon, reprieve appears to be on the way of insurance companies who have been apprehensive about their capacity to excel. However while this may be good omen for the stand alone insurance companies, industry watchers opined that the best weapon available to insures is for further recapitalization and more mergers and acquisition. This, according to them, will reposition the industry for greater strength and ability to absorb the post consolidation challenges.
Mr. Wole Olajide, veteran insurance practitioner opined that the increasing foray of banks into insurance, though an indication of public confidence on the industry, an indication of the industry’s viability, the unfolding situation is a clarion call on the insurers to put their house in order.
According to him, the capital base of banks which brought the number of banks to 25, from its weedy and shaky number was what earned it the vast advantage while calling for a forceful merger by operators as a way of consolidating on on-going reforms in the industry.
Olajide warned that if this is not done, the little gains that the consolidation has achieved would be rubbished, adding that the insurance firms profile may not only dwindle but may even be swallowed by the banks which will emerge stronger in their strict adherence to core banking services.
He suggested that rather than having as many as fifty insurance companies, mmany of which are only maintaining big presence in selected cities, insurers should merge to a maximum of ten mega insurers of world ranking.
In pulling resources together, analyst believes that capacity building should be given accelerated boost. This would reposition them to compete effectively.
However, analysts believe that one corresponding area which operators need to focus on is capacity building. Their position is that given the rapid development which the industry has witnessed, enhanced capacity building, may be one of the greatest challenges facing its development.
Joseph Ako, insurance consultant and trainer stated that the rapid growth in the sector needs to be complemented by tools for improved fortunes. He therefore, tasked operators to embark on capacity building through sponsorship of seminar, conferences and other areas that would grow the industry further. He called for an All stakeholders summit with a view to fashioning out sustainable policies for the overall interest of the industry. He stated that there was a greater strength in pooling resources together than having insurance companies who cannot be among the top insurers in the world.
He commended the organizers of the Insurance Future Summit held in Abuja but cautioned that while it may be expedient to sponsor such for a, it was also desirable to evolve increased “home grown” conferences which will put the local operators on their toes.. Ako also called on operators to be more involved in relevant community sponsorship as part of their corporate social responsibility. He explained that the insurance sector has not been very prominent in this regard, a situation which as placed insurance business as superficial before the public who correspondingly view their services as undesirable.
According to industry watchers, the new financial strength of operators makes it mandatory for more branches to be established. If new branches are thus set up to match the growth, they content that the situation calls for customized training and development program which will not only make operators to be attuned to current market trends but also make their services to meet the growing demands of the insuring public.
He advised operators to aggressively pursue capacity building as it remains the only weapon needed to sustain the accompanying increased returns on investment, enhanced profit margins and strategic service delivery.
Corroborating, The insurance consultant challenged operators to embrace the dynamic innovations and service delivery platform of the banks. Unless this is done, he said, banks may swallow up 50percent of insurance core services, especially against the background of rising acquisition of insurance firms by banks and the existing incursion of banks into some traditional insurance businesses.
To be able to manage the huge demands, which the post-consolidation will herald in the sector; emphasizing that capacity building poses a big challenge in meeting sustainable capital adequacy, human resources development and upgrading of information Communication Technology (ICT).
Still on strategic alliances, this analyst explained that such would allow for uniform services such as the one being rendered by banks presently through various services such as e-banking.
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Nigerian Airports to Get Mobile Courts to Try Unruly Passengers
Nigeria Civil Aviation Authority (NCAA) has announced plans to establish mobile courts at airports across the country to address the issue of unruly passengers.
This initiative aims to curb incidents of passengers attacking airline and airport staff or disrupting airport services due to flight delays and cancellations.
The decision was made following a stakeholders’ meeting in Lagos, where representatives from the Federal Airports Authority of Nigeria (FAAN), the Nigerian Airspace Management Agency (NAMA), the Nigeria Meteorological Agency (NIMET), and the Airline Operators of Nigeria (AON) discussed the rising cases of passenger misconduct.
The meeting also addressed extending operational hours at sunset airports to 10:00 p.m. to mitigate flight disruptions.
NCAA Director of Public Affairs and Consumer Protection, Michael Achimugu, emphasized the need for sensitization campaigns against unruly passenger behavior and the deployment of Aviation Security (AVSEC) officials to de-escalate aggression professionally.
The mobile courts will ensure that offenders are prosecuted and held accountable for their actions, reinforcing the commitment to maintaining decorum within Nigeria’s aviation industry
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NCAA Enforces Penalties on Five Airlines for Passenger Rights Violations
Nigeria Civil Aviation Authority (NCAA) has taken enforcement action against five airlines—two international and three domestic operators—for violations of Part 19 of NCAA Regulations 2023.
These breaches include failing to refund passengers within the stipulated timeframe, disregarding directives from the authority, mishandling luggage, issues with short-landed baggage, and problems related to flight delays and cancellations.
Michael Achimugu, NCAA’s director of public affairs and consumer protection, confirmed the development on Tuesday but declined to disclose the names of the sanctioned airlines.
Achimugu explained that while airlines are not always at fault for flight disruptions, NCAA regulations mandate specific actions they must undertake during such instances. Failure to comply with these directives results in penalties of varying severity.
Achimugu highlighted an uptick in passenger complaints about delays and cancellations, particularly during the festive season, with some disruptions attributed to harmattan-induced poor visibility.
“We all know that this is harmattan season, so there is poor visibility. Flights must get cancelled. This is force majeure, and the airlines do not owe passengers anything in those instances.
“The enforcement we are initiating today is on cases where the airline is deemed to have been at fault. More will come,” he said.
The NCAA plans to summon the chief executive officers (CEOs) of all airlines this week for a meeting to address flight disruptions and regulatory breaches.
Earlier, on December 10, the NCAA announced its intent to sanction airlines for delayed ticket refunds. Under Part 19 of the NCAA Regulations 2023, airlines are required to strictly adhere to refund timelines to protect passenger rights. Refunds for cash purchases must be made immediately and in cash, while electronic payments, including mobile apps and internet banking, must be refunded within 14 days.
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Firm Partners Access Bank to Train Youths in Digital Skills
NerdzFactory Foundation in collaboration with the Access Bank, has trained over 518 youths in digital skills. The two weeks virtual training, Youth Transition Program (YTP) 5.0, was meant to equip the youths for employment and digital skills and prepare them to excel in the competitive job market and unlock new economic opportunities.
Director of NerdzFactory Foundation, Ade Olowojoba, said the significance of the programme reflects the foundation’s mission to empower a new generation of leaders with the skills needed to thrive in an increasingly dynamic and digital global economy.
“Through initiatives like this, we are fostering innovation, resilience, and economic independence among young Nigerians,” he stated.
He disclosed that the programme succeeded in reaching its objectives. According to him, participants reported increased readiness for the workforce, improved digital skills, and enhanced entrepreneurial capabilities, which have positioned them to secure quality employment and launch their ventures. The programme has demonstrated the transformative impact of focused skill-building initiatives.
“NerdzFactory Foundation and Access Bank reaffirm their commitment to expand the reach of the Youth Transition Programme to empower more young Nigerians with the tools they need to achieve lasting success and contribute to Nigeria’s sustainable economic development,” he said.
The director noted that the programme launched in response to Nigeria’s high unemployment rate, delivered comprehensive training to empower participants with practical job search skills, digital marketing expertise, and knowledge of leveraging digital platforms for economic growth.
During the programme, some of the sessions included webinars and a virtual bootcamp designed to help participants develop workplace skills such as CV writing, LinkedIn optimisation, and effective use of digital workspace tools.
“By fostering economic independence and resilience, YTP 5.0 aligns with the United Nations’ Sustainable Development Goals, particularly Goal 4, on quality education and Goal 8, on decent work and economic growth,” he stated.
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