In its deliberate effort to protect the interest of the insuring public and safeguard the image of insurance sector, the National Insurance Commission (NAICOM) last year compelled some operating firms to settle a total of N5 billion worth of claims to the members of the insuring public. The claims were paid following the resolution of 218 cases of complaints filed against some insurance firms by policy holders at the NAICOM’s complaint bureau office.
NAICOM during the period under review, received a total of 413 complaints from aggrieved policy holders and resolved 218 cases, which resulted in the settlement of claims worth N5,475,174,716.63 to the aggrieved policy holders by the insurance companies.
NAICOM’s head, Corporate Affairs, Rasaaq Salami, said in a statement that in resolving the disputes, the Commission held adjudication meetings and had direct contacts with all the parties involved, adding that NAICOM is at the verge of resolving a total of 650 ongoing cases from 2014.
He assured the insurance public that NAICOM would continue to strive hard to ensure protection of policyholders, beneficiaries and third parties of insurance contracts.
Giving break down of how the cases were resolved, Salami, said that not all resolutions were in favour of the complainants as in some cases, the underwritters were right in repudiating claims.
“A case was withdrawn because it was found to be fraudulent, five cases were referred to Pension Transition Administration (PTAD) over non payment of pension while another one was transferred to National Pension Commission (Pencom).
“While cases that are found to be subjudice were not treated but left to the courts to do the needful, cases not resolved are still being looked at by the Complaint Bureau Unit in the Commission.”
The Commission urged aggrieved members of the public to send their insurance complaints to it through email on: contact@naicom.gov.ng.
Over 300 investors of Partnership Investment Plc whose stocks total N4.8 billion have urged the nation’s capital market regulator to ‘wield the big stick’ and ensure that investors are protected from suffering losses arising from fraudulent actions. The investors who used partnership Securities Limited as their broker were persuaded by the company to deposit their portfolio with the Partnership Securities Deposit Account (PSDA) for trading activities.
PSDA allows investors to deposit their portfolio with the company for trading while the company pays the investor interest for the use of his shares. Also, the value of the shares in terms of dividend is maintained while the usual tenor of such investments is 365 days.
According to investors, the recent revelations in the market has revealed that the company is about to deny them of their shareholding since the company has no intention of returning the stocks at maturity. Speaking at a press briefing in Lagos recently, one of the investors, Sola Alabi whose investment portfolio worth N36 million has been stuck in the company, explained that when it was obvious that the company was no longer following the terms of agreement, as he had written to the company last year, demanding a termination of the investment.
According to him, he requested that the shares should be returned to the Central Securities Clearing System to enable him to claim the shares but the request was not granted.
The National Coordinator, Standard Shareholders Association, Godwin Anono, who invested the sum of N160 million explained that after the PSDA agreement, he received payment on the initial sale of his shares.
He however added that the company has subsequently defaulted on payment. Another investor who happened to be a widow, explained that her husband invested the sum of N4.1 million in the company.
“Even organised and regulated institution can defraud investors, not only MMM. We were not driven by greed. It is our stocks and a topmost brokerage firm is involved in this mess.”
Bitcoin transactions in Nigeria have been hovering at over $1million weekly since the beginning of 2017, says LocalBitcoins.com.
The site showed that the number of Bitcoin exchange in Nigeria in the last 30 days was almost equal with the figure for the entire Eurozone.
According to Alexa.com, which provides website traffic statistics, 16 percent of LocalBitcoins.com’s visitors are currently located in Nigeria.
The founder, BitcoinNow, Davidson Atere-Roberts, however, said Nigeria and Africa generally are showing a huge sign of optimism for Bitcoin trading.
“The reality is that we live in the technology era and technology will continue to disrupt whatever comes across and that includes money. Global Bitcoin is still evolving into mainstream finance, so expectedly Africa is still at the nascent age of adoption and acceptance,” he said.
Following the plummeting oil prices, limited access to foreign exchange, high inflation, low investor confidence (both local and foreign), FMDQ OTC Securities Exchange (‘FMDQ’ or the ‘OTC Exchange’), on Thursday reported a 17 percent drop in market turnover in 2016.
FMDQ saw its turnover decrease from ₦137.43trillion in 2015 to ₦113.66trillion in 2016, a year-on-year (YoY) decline of 17.00%. However, despite the overall YoY decline, the OTC Exchange experienced positive growth in the Foreign Exchange Derivatives product line, propelled by the introduction of the OTC FX Futures product into the market.
Trading activities in T.bills contributed the largest to overall turnover, accounting for 40.00% of the market. Secured market transactions (Repos/Buy-backs) accounted for 27.00percent, whilst FX market transactions accounted for 22.00percent, Bonds, 8.00percent and Money Markets transactions (which include Unsecured Placement & Takings, Commercial Papers and Money Market Derivatives), 3.00percent, of overall market turnover. The turnover represents trades executed among Dealing Members, Dealing Members & Clients, and Dealing Members & the Central Bank of Nigeria. Though mindful of the economic headwinds, FMDQ looks ahead into 2017 with much enthusiasm. The OTC Exchange expects to continue to focus on its core mandate, leveraging on and garnering the collaborative support of its stakeholders, in order to foster economic development relevant to the growth of the Nigerian financial markets.
Chief among the initiatives which FMDQ will focus on for 2017 include the following: standardisation of repurchase agreements trading (with collateral management),new products development geared towards short-term and private companies’ bonds, financial markets education for FMDQ markets’ stakeholders, development of the non-interest finance (Sukuk) market, expansion of the fixed income and currency derivatives market, nigerian debt capital market development in line with the Capital Market Master Plan of the Securities and Exchange Commission.
Since the launch of FMDQ OTC Securities Exchange onto the Nigerian financial markets landscape in 2013, championed initiatives geared towards providing an enabling environment for the growth and development of the Nigerian fixed income, currencies and derivatives markets and the economy at large.
As a market organiser, the OTC Exchange has through its product and market development initiatives empowered the markets within its purview to enhance their global competitiveness, transparency and liquidity. As a self-regulatory organisation and front-line regulator of its Members’ activities, FMDQ has led strategic initiatives, ensuring that requisite and quality oversight is availed to make the Nigerian markets credible, in line with international standards. The year 2016, challenged and beleaguered with plummeting oil prices, limited access to foreign exchange (FX), high inflation, low investor confidence (both local and foreign), etc., had a significant impact on trading activities.
THISDAY investigations have revealed that the aviation industry in 2015 and 2016 lost over $2 billion investment from international financiers who wanted a stake in Nigeria air transport sector due to the prevailing economic downturn.
Considering the huge potential market for aircraft maintenance in Nigeria, THISDAY gathered that in mid 2015, one European based aircraft maintenance company opened discussions with a Nigerian carrier to establish Maintenance, Overhaul and Repairs (MRO) facility in Lagos. The company was said to have withdrawn from the deal, citing Nigeria’s volatile economy.
Also in 2015, an African airline, which has entry points in Nigeria was said to have commenced feasibility studies to locate MRO facility in Lagos to serve West African sub-region, but decided last year to locate it in Togo, targeting the Nigerian market.
“We gathered that Asky Airlines based in Lomé, Togo and shareholder, Ethiopian Airlines are planning to establish an aircraft MRO and training centre in Lome, Nigeria was first considered and the market is targeting Nigeria,” informed source told THISDAY.
The CEO of Ethiopian Airlines, Tewolde Gebremariam was quoted to have explained that Asky was in discussions with the Togolese government and that if approved, the MRO facility would service Boeing and Bombardier aircraft. The training facility would train back-office staff and cabin crew.
“Our main MRO hub remains in Addis Ababa and (we) will have regional MRO hubs in Lomé, Lilongwe and Kigali (home to partner RwandAir). Our planned Lomé MRO hub would maintain aircraft operating in Nigeria, Ghana, Côte d’Ivoire and Senegal,” Gebremariam.
During the said period, three international airlines withdrew their plans to partner Nigerian airlines and inject funds for their operation and training of technical personnel, with plans to introduce simulators for pilots training.
“We have discussed with three international airlines that were eager to buy stakes in our airline. They will bring in the technical support and inject funds into our company but later they become lukewarm and I have also decided not to go into any negotiation with any potential partner again because, looking at the recession, you will not get the actual value for your shares, as our economy is down now. They will be calling ridiculous amount of money. We have to rebuild our economy and I am optimistic that we will come out of this recession. When we stabilize then we can go into such partnership. The country is actually losing investment now; not only in aviation but in all the sectors of the economy,” industry source told THISDAY.
THISDAY also gathered that more international retailers plan to join Dufri at the nation’s international airports but such plans have been put in abeyance “because what is biting them hard is how to repatriate their earning because of the drastic fall of the naira,” explained a Federal Airports Authority of Nigeria (FAAN) official.
The official also disclosed that although Dufri has established its shops at the Lagos and Abuja international airports “but they are finding it difficult now. Their officials came and left on January 19, 2017. They are hoping that there will be a quick change in our economy.”
During media briefing by the Director-General of the Nigerian Civil Aviation Authority (NCAA), Captain Muhtar Usman on Monday he disclosed that some airlines have been in the process of obtaining Air Operators Certificate (AOC) with 18 firm applications and AOC certification process on-going, while nine are unfirm at the level of intent.
THISDAY also learnt that some of the airlines in the process of obtaining AOC might have lost their foreign backers because of the market uncertainty occasioned by the precarious economic situation.
“People are just waiting for things to turn around. I have also decided to hold on till next year when, hopefully, things will get better. People are just reluctant to invest here, but I believe it will get better,” one airline operator said.
The stock market opened February on a bearish note yesterday as investors’ sentiments remained dampened by weak corporate earnings by some companies. The Nigerian Stock Exchange (NSE) All-Share Index fell by 0.51 per cent to close at 25,903.55, extending the loss of the previous day.
Market operators said investors are being cautious as they await more corporate results for 2016 full year and quarterly performance. Already, Guinness Nigeria Plc, a leading brewing firm had announced a loss of over N4.6 billion for the half year to December 31, 2016. Similarly, Seven-Up Bottling Company Plc, declared a loss of N4.8 billion for the nine months ended December 31, 2016. Forte Oil Plc, which announced its full year results ended December 2016, posted a drop of 50 per cent in profit after tax and did not declare a dividend for the year.
“These results are serious concerns for shareholders who are not enthusiastic about increasing demand for stocks for now until positive results begin to come in to the market,” a stock dealer said.
In all, only nine stocks appreciated while 25 stocks depreciated yesterday led by Forte Oil with 5.0 per cent to close at N67.66 per share. Guinness Nigeria Plc and Unilever Nigeria Plc trailed with a decline of 4.9 per cent apiece. Forte had posted a revenue of N148.6 billion in 2016, up by 19.3 per cent from N124.6 billion in 2015. However, profit before tax fell by 24 per cent to N5.3 billion, from N7.0 billion, while profit after tax declined by 50 per cent to N2.9 billion, compared with N5.8 billion recorded in 2015.
While operating expenses declined by 2.9 per cent to N13.3 billion compared with N13.7 billion in 2015, net finance cost soared by 154.9 per cent from N1.7 billion to N4.3 billion, a development that affected the bottom-line.
Similarly, a jump of `166 per cent in net finance cost from N1.723 billion to N4.578 billion led to the loss of N4.6 billion recorded by Guinness Nigeria. However, the Managing Director/Chief Executive Officer of Guinness Nigeria Plc, Mr. Peter Ndegwa, said there are many bright spots for the company but that the challenging economic environment and high finance charges impacted results.
The Federal Mortgage Bank of Nigeria (FMBN) has posted operating surplus of N2.7 billion for the year ended December 2016, marking the bank’s return to profitability for the first time in over two decades.
This was one of a number of highlights at the bank’s 2016 Business Performance Review Session, which took place between 25th and 27th January, 2017 in Abuja.
The bi-annual programme was conceived to provide an opportunity for groups and field offices to report on their key performance indicators, identify critical factors affecting performance, and proffer pragmatic solutions. Additionally, the session allows for brainstorming on strategies for improved performance and sustained growth in the immediate future and a review of the broad provisions of the 2017 budget and communicate its goals to the top management of the bank.
Speaking during the programme, acting Managing Director/Chief Executive of FMBN, Mr. Richard Esin, said the Honourable Minister of Power, Works and Housing, Mr. Babatunde Fashola, appreciated and commended staff for their efforts and achievement in 2016.
He added that the minister was optimistic of the year ahead, as he was expecting the bank’s efforts in the past year to evolve into significant results in 2017.
Other highlights of the performance in 2016 was the N9 billion approved by the minister for the creation of 1,244 mortgage loans across the country, under the National Housing Fund (NHF) Scheme; the disbursement of the sum of N1.2billion to over 1,600 beneficiaries under the Bank’s Home Renovation Loan Scheme; the disbursement of the sum of N2.722 billion to 22,716 retired contributors as refunds, in line with the NHF Act.
Meanwhile, the bank had secured the approval of the Minister to capitalise equity contribution and perfection fees for mortgage applications of N5 million and below, for the Bank’s funded estates nationwide in a bid to ensure easier access to the NHF loan scheme for low income earners.
This means that Loan applicants will now have 24 months to pay the associated equity contributions and perfection fees for loan amounts under N5 million threshold, which would normally attract upfront equity contribution of 10 per cent of the loan amount.
Esin stressed the need to be proactive in the face of the anticipated increase in the supply of mortgage-able housing stock, which will be brought on stream through various efforts of the bank and the federal government including the National Housing Model expected to deliver 30,000 housing.
The country’s manufacturing activity fell to 48.2 index points in January 2017, down from 52.0 recorded in December, the Central Bank of Nigeria said in its Purchasing Managers’ Index released on Tuesday.
The report showed that while the manufacturing PMI dropped to 48.2 index points, the non-manufacturing PMI stood at 49.4 points, indicating a slower decline compared with the 47.1 points recorded for December 2016.
In the PMI report posted on its website, the CBN said, “A composite PMI above 50 points indicates that the manufacturing/ non-manufacturing economy is generally expanding, 50 points indicate no change and below 50 points indicate that it is generally declining.”
Though the manufacturing PMI grew in December 2016, it had recorded declines for eleven consecutive months and averaged 45.2 in the last 12 months.
The report showed that 10 of the 16 subsectors surveyed recorded decline in the month under review while the remaining six subsectors expanded.
The six sectors are: petroleum and coal products; appliances and components; nonmetallic mineral products; food, beverage and tobacco products; textile, apparel, leather and footwear; and computer and electronic products
Despite the decline in manufacturing activity, however, the report showed that the production level index for the manufacturing sector grew for the second consecutive month, standing at 51.3 points, indicating a slower growth when compared to the 57.6 points in the month of December 2016.
But this did not have any impact on new orders as well as suppliers’ delivery time during the period as they both declined with the latter standing at 48.5 index points while the former stood at 47.9 points.
Also, the report showed that the employment level index for the January manufacturing PMI stood at 45.3 points, indicating a decline in employment level for the 23rd consecutive month.
Similarly, the report showed that the employment level index for the non-manufacturing sector PMI declined for the 13th consecutive month in January 2017.
However, the report stated that at 45.6points, the index declined at a slower rate compared with the 43.8 points recorded in December 2016.
The profit of Flour Mills Nigeria Plc dropped by over 61 per cent for the nine-month ending December 31, 2016.
The company recorded a profit of N7.4bn for 2016, which was a major decline compared to N19.003bn posted for the same period in 2015.
Its revenue stood at N389.943bn compared to N263.579bn recorded in 2015, according to its filings at the Nigerian Stock Exchange on Tuesday.
Meanwhile, the Nigerian equity market closed lower on Tuesday as the NSE market capitalisation dropped to N8.972tn from N9.020tn.
The NSE All-Share Index shed 0.69 per cent as 205.771 million shares worth N2.762bn were traded in 2,914 deals.
The consumer goods sector was the chief laggard following declines across stocks like Nestle Nigeria Plc, Nigerian Breweries Plc and PZ Cussons Nigeria Plc, which depreciated by 3.07 per cent, 1.55 per cent and 4.98 per cent, respectively.
The banking sector maintained its losing streak as the United Bank for Africa Plc, Zenith Bank Plc and Guaranty Trust Bank Plc’s shares dropped by 4.22 per cent, 1.26 per cent and 1.13 per cent, respectively.
The Contributory Pension Scheme (CPS) now has a total of N6.02 trillion assets.
This represents total fund accrued from the scheme in its 12 years regime in Nigeria as at November 2016.
The Director-General, National Pension Commission,( PenCom) Mrs. Chinelo Anohu-Amazu, in her latest information on status of the scheme, asset-wise, attributed the growth to the prudent way the fund managers handled it and lack of fraudulent activities under the scheme.
According to her, the funds rose from N4.6 trillion at the end of the 2014 financial period to N5.3 trillion in 2015.
Anohu-Amazu, also explained that the new law re-enacted in July 2014, replacing the Pension Reform Act (PRA), 2004, also empowered PenCom as the sole regulator and supervisor of pension matters in the country.
According to her, among other significant revisions, the PRA 2014 introduced some innovations in the pension system, instituted a stiffer regime of sanctions and penalties for infringements, ensured the upward review of the minimum rate of pension contribution in order to enhance the value of pension pay-outs, and expanded the coverage of private sector employees under the CPS. She also said the recovery agents put in place by the commission also boosted the performance of the scheme. According to her, the commission has recovered over N11billion between 2013 and date from errant firms through its recovering agents. The PenCom boss, while commending the effort of the recovering agents, said the commission in 2012, discovered that several thousands of employers were not funding their workers’ Retiring Savings Accounts (RSAs), hence, employed the services of recovery agents.
The Commissions Secretary and Legal Adviser Muhammad Muhammad had warned that non remittance of deducted employee salary is a criminal offense adding the Commission would collaborate with the Economic and Financial Crime Commission (EFCC) to ensure all outstanding contributions were remitted.
