Business
Forex Crises: Insurers Struggle To Grow Income From Imports
There are indications that the perennial crises in Nigeria’s foreign exchange market has negatively impacted the projected growth in marine and shipping insurance business.
Latest data has shown that the growth rate is far below what the industry operators expected after many years of the enabling law designed to spur growth went into full force.
However, findings have shown that the highest premium income recorded so far was N18 billion in the first quarter 2023.
This was despite the huge volume of transaction recorded in the import business, which stood at N5.3 trillion in first quarter of 2023.
Expressing disappointment, the insurance industry operators attributed this poor performance to the harsh foreign exchange market that has forced most importers to go for minimal insurance coverage, also known as third party marine insurance.
Managing Director of Nem Insurance Plc, Mr. Tope Smart, said, “Having achieved some level of progress with motor insurance since it took off in June 2012, the scheme is poised to bring down the level of fraud in marine insurance business, which is costing the sector billions of naira”.
Speaking on the situation, Managing Director of Guinea Insurance Plc, Mr. Ademola Abidogun, stated that “The issue of the constant rise in the value of the dollar against the naira is affecting a lot of businesses. It has adversely affected the import secto, and, because of that, some importers are not doing their insurances properly.
“So the high exchange rate and the unavailability of dollars have affected insurance too. Most importers are already paying huge prices for their goods because of the high exchange rate. Consequently, most importers will rather do clause ‘C’ insurance, which is equivalent to third party insurance for motor. Clause ‘C’ is actually the minimal insurance that importers can do.
“Another factor that is affecting maritime insurance premium income is that some importers get foreign exchange facility from the banks to facilitate their business because it is compulsory for them to go through the banks because of their type of imports.
“Unfortunately, due to scarcity of foreign exchange, many of such importers were forced out of business because there is no dollar to even do the importation.
“Insurance is compulsory for imports, so importers that have trade partnerships with banks, cannot do importation without obtaining foreign exchange facility through the banks. Consequently, that affected premium income as there was no import to underwrite in such instance.
“In the past, fake marine insurance thrived because the banks were not involved. But now, that is not the case because if importers have partnership with banks, they must do their insurance through an insurance company. However, the scarcity of foreign exchange has really affected us”.
Abidogun noted that the way forward is for all hands to be on deck with the insurance sector embarking on massive awareness drive.
He said, “Going forward, the insurance sector must not continue to be laid back. We must ensure that the law on marine insurance is enforced to the fullest.
Also, we must embark on awareness creation and build more awareness in the minds of the people especially importers on the importance and the role insurance can play in the foreign trade sector”.
Business
NIGCOMSAT Seeks Policy To Harness AI Potentials
The Nigerian Communications Satellite Limited (NIGCOMSAT), the country’s satellite operator, has called for immediate promolgation of policy action that will enable the country to harness the potentials of Artificial Intelligence (AI).
NIGCOMSAT, also warned that Nigeria risks missing out on Africa’s projected $1.2trillion share of the global AI economy by 2030.
Managing Director of NIGCOMSAT, Nkechi Egerton-Idehen, disclosed this in a statement issued at the weekend following her participation in the Meeting of the National Council for Communications, Innovation, and Digital Economy.
“Artificial intelligence is reshaping industries, economies, and societies worldwide, with projections that it will contribute up to $15.7trillion to the global economy by 2030. Africa stands to gain $1.2trillion of this if the right policies and innovations are in place”, Idehen said, citing a PricewaterhouseCoopers report.
The NIGCOMSAT MD underscored the transformative potential of AI in agriculture, highlighting its applicability in Benue State, widely regarded as Nigeria’s “food basket.”
According to her, machine learning tools could revolutionize agricultural practices by improving pest detection and optimizing planting schedules using satellite imagery.
“AI offers us the chance to not only flourish economically but also to achieve food security. However, we must ask ourselves if we are prepared to manage this technology responsibly”, she added.
Idehen also noted that internet access remains a significant barrier to AI adoption in Nigeria.
“For AI tools to be effective, basic digital infrastructure is essential. Addressing this gap must be a priority.
“AI is happening. We have the opportunity to manage this technology revolution responsibly, both in Africa and globally, through innovation and governance”, she said.
In August 2024, the Federal Ministry of Communications, Innovation, and Digital Economy released a draft National Artificial Intelligence Strategy, aiming to position Nigeria as a global leader in AI.
Corlins Walter
Business
We Have Spent N1bn On Electrification -LG Boss
The Chairman of Emohua Local Government Council, Chief David Omereji, has said the council has so far spent over N1 billion for the electrification of communities in the area.
Omereji said this while addressing staff of the council at the council headquarters recently.
He said the move was part of his administration’s resolve to ensure peace and development of the LGA.
According to him, the Council spent about N29 million on monthly basis for the maintenance of the Emohua Local Vigilante group known as OSPAC, with each member being paid a stipend of N100, 000 monthly.
He diaclosed that 11 out of the 14 wards are currently enjoying electricity, while efforts are on to light-up the remaining ones.
“I also want to use this opportunity to inform the political class for purposes of records and for the understanding of the people that the Council under my watch have done more than enough”, he said .
The Emolga boss explained that all that have been achieved were through the personal effort of the Council, without support from anybody as rumoured in some quarters.
Omereji further reaveled that a number of other projects, including roads, fencing of schools, hospitals, courts premises, and reconstruction of some abandoned buildings at the Council Headquarters are being undertaken by his administration.
He enjoined the people of the area to support his administration’s drive to bring purposeful development to the LGA.
The Emohua Council boss, who reiterated his hatred for noise making, stated that his works would speak for him, and solicited the support of staff of the council and the entire people of the area.
He noted the fact that some people may not be happy with his achievements, saying that he would remain focused, while advising critics of his government to do so constructively with facts and figures.
King Onunwor
Business
Ogoni Rejects NNPC-Sahara OML11 Deal … Wants FG’s Intervention
The Movement for the Survival of the Ogoni People (MOSOP) has raised some ethical questions over a Financial and Technical Services Agreement (FTSA) between Sahara Energy and West African Gas Limited (WAGL), an affiliate of the Nigerian National Petroleum Company (NNPC).
MOSOP said the agreement was not done in good faith, not in the interest of the Nigerian people, and did not follow due process.
Foremost Ogoni born activist and MOSOP leader, Fegalo Nsuke, who made this known in Abuja, weekend, described the Sahara-WAGL deal as fraudulent, deceptive and an insult on the intelligence and integrity of the Nigerian nation.
Nsuke called on President Bola Ahmed Tinubu to cancel that FTSA between Sahara Energy and WAGL, noting that the agreement is fraught with irregularities and deceptive.
“What Sahara and the NNPC did in the FTSA between Sahara and WAGL is shameful and depicts high level corruption in public service of our country.
“WAGL is an affiliate of Sahara and the NNPC. How then can Sahara go into an agreement with its own affiliate? It’s as good as going into an agreement with itself. This is deceptive and fraudulent”, Nsuke said.
He continued that “Sahara Energy is certainly not a company the Ogoni people want on their soil and we are calling on Mr. President, Bola Ahmed Tinubu, to terminate any deal between the NNPC and Sahara Energy over OML 11, and to allow for an inclusive arrangement that considers a fair treatment of the Ogoni people in the distribution of revenues from natural resource extraction on Ogoni soil.
“The last Ogoni Congress has been unequivocal on the Ogoni demand for justice and has given a clear path to resolve the three decade old conflict between all critical parties.
“It will be good to explore this path to peace and development for Ogoni and for our country”.
Nsuke accused Sahara Energy and the NNPC of frustrating the progress made by MOSOP to achieve a permanent solution to the Ogoni problem.
He urged a presidential intervention with deep consideration for a fair treatment of the Ogoni people in order to permanently address the problem.
He noted that Sahara Energy should give up on the Ogoni area to allow for an engagement in the interest of the country and the people.
Recall that MOSOP and Sagara Energy have recently been engaged in a row in what MOSOP describes as an unholy relationship between Sahara Energy and the NNPC over OML 11.
MOSOP expressly rejected Sahara Energy and called for a fair treatment of the Ogoni people in natural resource extraction in Ogoni.
It noted that Ogoni people, led by MOSOP, paid the sacrifice to take the oil from Shell, hence “the position of MOSOP must be taken into consideration in decisions relating to resumption of oil production in Ogoni”.
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