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Sovereign Trust Retains GCR A-Rating

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Sovereign Trust Insurance Plc has for the third time bagged an A-Rating from GCR (Global Credit Rating), the reputed South African Rating Agency. This was the out come of the latest rating exercise carried out by the renowned agency.
According to a statement released by the corporate communications and Brand Management Department of the organisation, the rationale used by GCR in arriving at the rating includes solvency and liquidity, claims paying ability, capital adequacy, peer to peer performance comparison amongst others.
GCR in its rating observed that Sovereign Trust Insurance Shareholders’ Fund is above the minimum statutory requirement for insurance companies in the country, while its investment port-folio has supported overall profitability in the last five years generating good investment returns.
The company’s liquidity is also considered strong with a consistent improvement in Net Profit After Tax (NPAT).
Even though it was observed by the rating agency that there was a lull in premium collection industry –wide, the company stands to be commended for the efforts in ensuring that business booked by brokers and direct customers are paid for on a timely basis. The insurer’s maximum net retention on oil & Gas (W1) under-writing was quite impressive with a variable multi-linc reinsurance package.
When compared to its peers, the company’s solvency is considered adequate while its loss ratio, Gross Premium Income (GPI), Wet Premium Income (NPI) and profitability competes favourably well with its peers.
Due to its proactive nature, Soveragign Trust Insurance Plc has attempted to diversifying from the predominantly brokers driven market by deriving a portion of its business from agents and direct marketing initiative. As a fall-out of this, the company has attempted to increase its market share with the introduction of a pan-Nigeria agency system with a view to having a more robust market share in the industry.
A breakdown of the company’s GPI (Gross Premium Income), showed that Motor Insurnace remained the largest contributor with 31.4 per cent closely followed by Engineering Insurnace with 30.1 percent, General Acident Insurnace, Fire Insurance and Transport Insurance all contributed 17.2 per cent, 11.9 per cent and 9.4 per cent respectively.
Gross Premium Income has grown over the last three years at a compound rate of 64 per cent while the net commission rate has increased from 15 per cent in 2007 to 18 per cent in 2008. The report also showed that halting further expansion by the company in the last quarter of 2008 has impacted positively on the compnay’s performance.
Conclusively, the Global Credit Report submitted that Sovereign Trust Insurance Plc has experienced growth through its aggressive marketing strategy, strong commitment to cooporate brand management as well as its increased branch network and participation in oil and gas business.
The company’s investment in the capacity building of its workforce through local and foreign training coupled with the upgrade of its Information Technology (IT) platform are also notable development strategy which could help the firm compete favourably with major players in the industry in the years ahead.

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USTR Criticises Nigeria’s Import Ban On Agriculture, Others

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The United States Trade Representative (USTR) has criticised Nigeria’s import ban on 25 categories of goods, claiming that the restrictions limit market access for American exporters.
This is the effect of President Donald Trump’s tariffs introduction on goods entering the United States, with Nigeria facing a 14 per cent duty.
The USTR highlighted the impact of Nigeria’s import ban on various sectors, particularly agriculture, pharmaceuticals, beverages, and consumer goods.
The restrictions affect items such as beef, pork, poultry, fruit juices, medicaments, and alcoholic beverages, which the United States sees as significant barriers to trade.
The agency argues that these limitations reduce export opportunities for United States businesses and lead to lost revenue.
“Nigeria’s import ban on 25 different product categories impacts United States exporters, particularly in agriculture, pharmaceuticals, beverages, and consumer goods.
“Restrictions on items like beef, pork, poultry, fruit juices, medicaments, and spirits limit United States market access and reduce export opportunities.
“These policies create significant trade barriers that lead to lost revenue for United States businesses looking to expand in the Nigerian market”, the agency said .
In 2016, Nigeria implemented the ban on these 25 items as part of efforts to control imports and stimulate local production.
Some of the banned items include poultry, pork, refined vegetable oil, sugar, cocoa products, spaghetti, beer, and certain medicines.
On March 26, 2025, the  Federal Government also announced plans to halt solar panel imports to encourage local manufacturing as part of its push for clean energy.

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Expert Seeks Cooperative-Driven Investments In Agriculture 

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A leading agribusiness strategist and digital agriculture expert, Ayo Oluwa Okediji, has sought cooperative-driven investments in sustaining growth of poultry industry in Nigeria.
He said the poultry industry was at a defining moment and requires urgent structural reforms to secure its future and ensure long-term sustainability.
Speaking on the theme, “Strengthening Poultry Farming Through Cooperative Synergy and Strategic Investments”, at the recently concluded Oyo Mega Poultry Workshop 2025 in Ibadan, Okediji called on poultry farmers, cooperative leaders, financial institutions and policy makers to rethink the existing structure of the poultry sector.
He stressed the need to transition from fragmented, individually-driven operations to well-structured, cooperative-led enterprises capable of attracting sustainable financing and securing long-term viability.
He said, “Our poultry sector cannot thrive on individual effort alone. We need to organise ourselves into cooperative clusters, build strong governance systems and position ourselves to attract the level of investment needed to sustain this industry beyond this generation.”
Drawing on lessons from successful global cooperative models such as Rabobank in the Netherlands and Landus Cooperative in the United States, Okediji introduced the FarmClusters Poultry Model, a locally adapted solution developed by Agribusiness Dynamics Technology Limited (AgDyna), a subsidiary of AgroInfoTech Africa.
According to him, the model is currently being piloted in Oyo State in partnership with PANOY Agribusiness Limited and local poultry cooperatives.

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NACCIMA Proposes Hybrid Oil Palm Seedlings For Farmers

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The Rivers State Representative of the Nigeria Chambers of Commerce, Mines, Industries and Agriculture (NACCIMA), Mr. Erasmus Chukwundah, has urged palm oil farmers to consider hybrid seedlings for planting, if they must break even in palm oil business.
Chukwundah said this recently at the Free Oil Palm Business Climate Smart Best Management Practice/Assistance Training organized by Partnership Initiative In Niger Delta (PIND) for Palm Oil Farmers in Elele, Ikwerre Local Government Area.
The Rivers representative said until palm oil farmers begin to consider such hybrid oil palm seedlings, they may not meet up with the daily increasing demand of palm oil in the market.
According to him, the seedlings produce up to 30 bunches at once that ripen same time.
He said PIND decided to partner with Oil Palm Growers Association of Nigeria (OPGAN) to ensure that the message was received by the targeted audience.
According to him, palm oil remained a popular choice of industry operators as it could be converted to many other products such as vegetable cooking oil.
He also noted that products such as motor tyers, marine ropes and others are now gotten from the palm tree.
Chukwundah, who is the immediate past Director-General of Port Harcourt Chamber of Commerce, Mines, Industries, and Agriculture (PHCCIMA), further warned against use of unrecommended fertilisers in growing oil palms.
He noted that such practices could limit its export value or chances as the foreign marketers have a way of detecting such .
He reiterated the need for organic fertilizers, including poultry droppings, to enable them have a natural palm oil.
“People must reduce physical contact with palm oil production. That is why we are campaigning for hydrolic oil mills. The foreign markets are no longer interested in crude method of palm oil production”, he said.
Meanwhile, one of the farmers, Sonny Didia, who appreciated Chukwundah’s commitment towards the concern of farmers, appealed for an urgent need for loan opportunity with low interest rate in order to enable them beat the target.

King Onunwor

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