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Some 139m Nigerians without Insurance Cover-NOI Polls

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A disturbing figure emerged on Tuesday suggesting that most Nigerians are without insurance cover, a situation blamed on poor enlightenment of the importance of the scheme.

This was contained in the latest weekly poll results released by NOI Polls.

The results have also indicated that Vehicle/Car insurance (63%) is the most commonly purchased insurance cover, and Insurance companies (42%) and agents (41%) are the key channels of insurance purchase.

Furthermore, the major causes of the low market penetration and poor insurance culture are low awareness and poor enlightenment on the benefits of insurance (40%).

The poll also reveals huge potentials for insurance companies and practitioners to design new products to target Nigeria’s bulging youth population. These are the key findings from the Retail Insurance Snap Poll conducted in the week of August 19th, 2013.

NOI Polls aligned with recent media report that the insurance culture in Nigeria can best be described as almost non-existent.

“Despite the fact that the Nigerian environment has a high and increasing level of risk, less than 2% of Insurable risks are covered by insurance.

 “Previous studies have shown that low awareness and lack of knowledge about insurance products characterize people’s opinions about the insurance sector. Apart from these, negative perceptions of Nigerians towards insurance have generally inhibited the growth of the sector. For instance many are of the opinion that insurance companies are more concerned in collecting premiums, than in settling claims thus affecting the general confidence in the insurance companies,” the research engine noted.

There are also cultural and religious factors associated with the slow growth of the insurance sector. Anecdotal evidences suggest that the demand for insurance cover in Nigeria may be affected by various cultural and religious beliefs in the country in a way that it affects people’s perceptions on risk aversion. For instance, some religions have created a strong disapproval to life insurance, declaring that dependence on life insurance brings about a distrust of God‘s protecting care.

In view of these, NOI Polls conducted its latest poll on Retail Insurance to explore the insurance culture in Nigeria in terms of the level of patronage and the reasons surrounding poor insurance culture in Nigeria.

Respondents were asked four specific questions. Firstly, in order to measure the proportion of Nigerians that have insurance, respondents were asked: At present, do you have any form of insurance cover in your name? Overall, the majority of Nigerians (86%) do not have any form of insurance cover; thus indicating low insurance penetration in the country and poor insurance culture amongst Nigerians.


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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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E-Financial

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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