The Central Bank of Nigeria’s Investors and Exporters Foreign Exchange window has traded about $3.83bn since it was established on April 24, it has been learnt.
Foreign exchange traders said this on Monday as the naira traded more strongly on the window than on the black market, Reuters reported.
The window, where buyers and sellers are free to agree an exchange rate, was introduced by the CBN in April to try to attract foreign investors into the country and boost the supply of dollars.
Traders said $407m were traded last week compared with $354.8m in the previous week, indicating a gradual return in investors’ confidence to the forex market.
“We have seen continuous improvement in dollar inflow into the market in recent time from offshore investors and this has also reflected in the volume of transactions at the equity market,” one currency trader told Reuters.
Before the window was introduced, the CBN was the main supplier of hard currency on the interbank forex market, after foreign investors fled naira assets in the wake of an oil price slump in 2014.
A CBN spokesman last month said the bank was, on average, responsible for less than 30 per cent of trading on the investor market.
At the forex window, market regulator FMDQ OTC Securities Exchange quoted the naira at 364.56 to the dollar on Monday, versus 367 to the dollar on the black market.
Commercial banks quoted the naira at 306/dollar on Monday, the level they have been quoting for around the last two weeks
Meanwhile, the CBN on Monday injected a total of $142.5m into the inter-bank foreign exchange, a few days after intervening in the retail segment of the market with the sum of $254.3m.
A breakdown of the Monday’s intervention indicated that the bank offered the sum of $100m to dealers in the wholesale segment, while it allocated the sum of $23m to the Small and Medium Enterprises segment.
Those requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance received $19.5m.
The CBN spokesperson, Mr. Isaac Okorafor, said the CBN would continue to carry out its regular mediation in the market so as to keep the market liquid and guarantee the international value of the naira in line with its mandate.
Sovereign Trust Insurance Plc has reported a growth in its profit before tax from N241m in 2016 Q1 to N488m in 2017 Q1, representing a growth rate of 102 per cent.
The insurer’s underwriting profit rose from N571m in 2016 to N746m in 2017 representing a 30 per cent growth rate, while investment income also grew by 12 per cent from N121m in 2016 to N135m in 2017 Q1, a statement showed.
The company said, “The year 2017 started on a very shaky note shrouded in uncertainty and a very bleak business outlook for some insurance companies, riding on the premise that some of them fell short of their expectations and aspirations in year 2016 as a result of the negative effects of the recession that characterised the Nigerian economy during the year.
“However, for Sovereign Trust Insurance, things are actually looking up considering the company’s first quarter performance in 2017. On a careful examination of the unaudited financial statements which was recently released by the organisation, one can only say that indeed, it has been a season of impressive performance.”
Its total gross premium written grew from N2.3bn in 2016 Q1 to N4.1bn in 2017 representing a 78 per cent growth rate, and its net premium income grew from N1.1bn in 2016 to N1.6bn in 2017, thus growing by 48 per cent.
The underwriting profit rose from N571m in 2016 to N746m in 2017 representing a 30 per cent growth rate, while investment income also grew by 12 per cent from N121m in 2016 to N135m in 2017 Q1.
The company’s management expenses reduced from N402m in 2017 Q1 to N369m in the same period of 2017. This was attributed to the management team’s commitment to reducing cost of operation as much as possible with the ultimate aim of delighting its shareholders.
“Notwithstanding the harsh operating environment of the first quarter of the year, Sovereign Trust Insurance has been able to record meaningful appreciation in all its financial indices going by its first quarter 2017 unaudited financial statements. The future indeed, looks very promising,” it added.
The Nigerian equities market appreciated marginally by 0.16 per cent at the close of trading on Thursday after 20 stocks closed positive.
A total of 168.512 million shares valued at N3.627bn were traded in 3,536 deals.
The Nigerian Stock Exchange market capitalisation rose to N11.151tn from N11.133tn, as the All-Share Index closed at 32,354.78 basis points from 32,302.32 basis points.
The market settled its year-to-date returns at 20.39 per cent, and recorded a total of 23 losers.
Oando Plc was the top gainer for the day, appreciating by 4.97 per cent to close at N7.39.
Axa Mansard Insurance Plc, 7UP Bottling Company Plc, Cutix Plc and FCMB Group Plc also appreciated by 4.91 per cent, 4.85 per cent, 4.76 per cent and 4.35 per cent in their respective share prices.
However, May & Baker Nigeria Plc recorded the highest share price decline, shedding 9.40 per cent, to close at N3.18. UACN Plc, Fidson Healthcare Plc, Flour Mills Nigeria Plc and Red Star Express Plc’s share prices also declined by 4.95 per cent, 4.93 per cent, 4.93 per cent and 4.89 per cent, respectively.
All NSE indices save for NSE food/beverages index which dropped by 1.13 per cent, closed in the green zone at the end of trading.
The NSE oil/gas index recorded the highest advancement of 1.15 per cent while the NSE insurance, NSE banking, NSE industry indices gained by 0.90 per cent, 0.53 per cent and 0.49 per cent, respectively.
Commenting on the performance of the market, equities analysts at Meristem Securities said, “We opine that the slight gain by Dangote Cement Plc (0.96 per cent) at the end of the trading day pushed the market into the green zone as ex-Dangote Cement, the Nigerian bourse would have closed with a loss of 0.19 per cent.
“In anticipation of the earnings season, we do not rule out the possibility that position-taking by investors may drive buy pressures on Friday. However, we still expect a negative week-on-week return.
Banking stocks sank by 3.36 per cent week-to-date at the close of trading on the floor of the Nigerian Stock Exchange on Tuesday as the Exchange’s market capitalisation dropped by N162bn.
Bearish sentiments dominated the equities market for the third consecutive day, as the NSE All-Share Index declined by 1.10 per cent, to settle the year-to-date return at 20.60 per cent.
However, volume traded and market turnover advanced by 27 per cent and 12.19 per cent, respectively. There were only 10 gainers and 31 losers.
The banking shares were said to have fallen after regulators said they had intervened to save the country’s fourth largest telecoms firm, Etisalat Nigeria, from collapse as talks with local lenders to renegotiate a $1.2bn loan failed.
Etisalat Nigeria had been negotiating with its lenders for more than five months to restructure a $1.2bn loan it took four years ago, after missing several repayments.
The news sent the banking index lower, which caused the main index to fall by 1.1 per cent as investors sold shares on worries that lenders might be forced to take a haircut on Etisalat’s loan.
Half-year earnings season has started for companies listed on the Lagos bourse and lenders, under pressure to avoid loan-loss provisions, had been pushing to finalise restructuring talks before interim audits in June.
For the banking segment of the market, United Bank for Africa Plc topped the decliners with a fall of 5.75 per cent. Ecobank Transnational Incorporated shed 4.94 per cent, Diamond Bank Plc and FCMB Group Plc both lost 4.72 per cent each.
Overall, Neimeth International Pharmaceuticals Plc led the laggards to close at N0.75 after losing 8.54 per cent. This was followed by UBA.
Cornerstone Insurance has grown its gross premium by 25 per cent during the 2016 financial period.
The Group Chairman of the company, Mr. Segun Adebanji, stated this during its Annual General Meeting in Lagos.
“Despite the harsh economic climate the company has sustained its growth trajectory by growing gross premium written by 25 per cent to N9.1bn from N7.3bn in 2015,” he said.
He said that sales to retail customers accounted for 25 per cent of the premium while special risks products to the oil and gas as well as engineering sectors contributed the second highest proportion at 23 per cent.
The chairman said the increased financial strength from the conclusion of the acquisition of Fin Insurance and their growing reputation as a credible partner was opening opportunity for leadership position on major transactions.
Adebanji said this had also provided support for its retail expansion.
He, however, explained that high claims, inflation and the security challenges in the North East and South- South zones of the country led to a significant deterioration in the claims experienced during the year under review.
“Gross claims for the year was N4.5bn, representing an increase of 61 per cent from the previous year of N2.8bn, driven largely by death claims from the group life, credit life and third party motor classes of insurance,” he said.
He said the board of directors and the management of the company had also put in place additional cost management and revenue enhancement measures to ensure a quick return to profitability.
The World Bank committed a total of $215m to the execution of rural community development projects across the country under its Community and Social Development Programme. The National Coordinator, CSDP, Dr. Abdulkarim Obaje, disclosed this at the opening of a two-day retreat for supervising ministries and Board of Directors of the CSPD in Abuja on Thursday.
Acting President Yemi Osinbajo signed an Executive Order on the Voluntary Asset and Income Declaration Scheme, which was launched during the week. At the launch, Osinbajo stated that tax defaulters, who failed to pay up by March 31, 2018, would have their names published, adding that the VAIDS would be from July 1, 2017 to March 31, 2018 to give a window of opportunity to defaulters to regularise their tax affairs.
The Nigerian National Petroleum Corporation’s plan to grow the country’s crude oil reserves to 40 billion barrels by the year 2020 received a boost with the execution of a tripartite agreement between the NNPC/FIRST Exploration and Production Joint Venture and Schlumberger, which is meant for the development of the Anyalu and Madu fields in the Niger Delta under Oil Mining Licences 83 and 85, offshore Nigeria.
Equity market – Listed securities on NSE
The Nigerian equity market witnessed a bullish run in the first two trading sessions post-Eid-el-Fitr holidays even though the last trading day recorded a downward movement in the market indices. Despite this trend, the week still closed on a net positive trend.
Consequently, NSE ASI and market capitalisation appreciated significantly by 3.70 per cent (370 basis points) week-on-week to close at 33,117.48 points and N11.107tn, respectively. With this, the NSE ASI has now delivered a positive YTD year-to-date return of 23.23 per cent.
In the last trading, being the last day for the half-year, the market turnover closed on a negative note compared to the previous session by -21.26 as against the uptick of +13.72 the previous day.
The market breadth also closed negative as Eterna led 18 gainers as against 33 losers topped by Unilever at the end of the day’s session.
This week, we expect a mix of profit-taking and bargain hunting activities amidst improved investor confidence and preparations for the release of half-year results.
NASD unlisted securities
The northward trek previously recorded in the key performance indicators of the NASD OTC market reversed as the twin market indicators closed on a negative note. Consequently, the Unlisted Securities Index and market capitalisation depreciated significantly by 1.79 per cent to close the week at 631.52 points and N427.37bn, respectively.
Money market
The OBB and Overnight rates appreciated by 1.33 per cent and 1.17 per cent to close the week at 5.33 per cent and 5.75 per cent, respectively
The Nigeria interbank offer rates declined for the one month, two months and three months offer by -0.05 per cent, -0.02 per cent and -0.39 per cent to close at 19.37 per cent, 21.40 per cent and 23.31 per cent, respectively.
This week, rates may nosedive slightly as FAAC inflow of approximately N462.359bn is expected to hit the system. We also expect the Central Bank of Nigeria to mop excess liquidity by way of OMO auction.
Treasury bills market
The CBN sold N31.94bn ($104.76m) in Treasury bills on Friday, June 30, 2017 in a bid to tighten liquidity in the money market, while the overnight lending rate fell.
The bank also sold N31.52bn of the 349-day Treasury bill at 18.59 per cent and N440m of the 160-day Treasury bill at 17.98 per cent at an auction on the same day.
It was also reported that cash balance in commercial lenders’ accounts with the central bank stood at N320.35bn, boosted by the repayment of N287.39bn in matured Treasury bills on Thursday.
Rates are expected to remain flat in the current week unless the central bank decides to take advantage of the low rates to mop up excess liquidity from the banking system.
The planned public listing of the shares of MTN Nigeria on the Nigerian Stock Exchange offers both institutional and individual investors the opportunity to get a slice of the telecommunications firm that has 62 million subscribers, the company has said.
The Deputy Head, Mergers and Acquisitions, MTN Group, Kholekile Ndamese, who led a team from Nigeria and South Africa, said this when they met with Minister of Science and Technology, Dr. Ogbonnaya Onu, in Abuja on Friday.
Ndamese said he was in Nigeria as part of the company’s consultation and engagement with stakeholders prior to the listing of its shares on the floor of the Exchange.
He explained that the listing of the stock would be one of the largest listings undertaken in the continent as well as by the company.
According to him, the venture will also showcase Nigeria to the world as well as attract other investors to the country.
Through the listing, he added that subscribers to the MTN network and other investors would have the opportunity to own part of the company.
Ndamese stated, “We will like to do the transaction process through digital form to enable Nigerian people apply online in a manner that will be safe. It will be the first in Africa to use the digital format unlike paper process used in other African countries.
“It is a kind of Nigeria showing leadership to the rest of Africa. We have been engaging the regulators and key stakeholders. That is why we are consulting all the ministries.”
Responding, Onu challenged MTN Nigeria to invest in local research and innovation in order to remain globally competitive.
The minister regretted that the economies of African countries were still hinged on the production of raw materials, adding that it was through research and innovation that the continent could break away from the shackles of underdevelopment.
He said, “I want a situation where MTN Nigeria will start investing in research and come up with innovations to support the MTN Group in order to be competitive in the world, because it will have difficulties to compete without research.
Shareholder groups in the capital market, speaking to the News Agency of Nigeria, have advised Etisalat Nigeria to settle the $1.2 billion debt it owes 13 commercial banks to avoid a takeover, even as the banks insist on the prosecution of the foreign directors of the company and its principal Mubadala.
The banks claim the Mubadala-appointed CFO of Etisalat Nigeria ( name withheld) diverted over $700,000 from the proceeds of the sale of its towers it earned when it sold to IHS – a Nigerian towers and telecommunications infrastructure provider. According to bank officials, they had financed the import and purchase of the towers through Huawei of China to help build the infrastructure backbone for Etisalat. But when the telco earned hard currencies from the sale, Etisalat failed to repay their USD loans as was done by other telcos like MTN and Airtel.
” It makes no sense that the Etisalat CFO simply exchanged the USD they earned at the official rate of $/ N200 when the forex markets was at almost $/N400 and used it for other purposes”, said a bank risk official at the weekend.
“Had they paid off the USD loans with the USD they earned from the sale of the towers there would absolutely have been no problem today”, the bank official said.
When contacted, an Etisalat official who spoke to THISDAY on condition of anonymity, said that their CFO converted the USD to Naira and used the proceeds to pay off Naira loans because of a higher Naira interest rate. The banks are, however, crying foul saying why would they elect to hold a USD loan when revenues are in Naira and USD scarce?
“So when you get a rare USD revenue inflow, the only sound governance is to pay off USD debts and reduce foreign exchange risk.That Finance Director from Mubadala and Etisalat in AbuDhabi has questions to answer over the transaction which may have caused the bad loans through reckless and fraudulent trading, ” a bank official said, insisting that the Etisalat CFO must be held to account after the company moved to pull out of Nigeria without paying off the debt.
The shareholder groups equally insisted that Etisalat must settle its indebtedness to the banks, so that the lenders in turn can pay dividends to their shareholders. Mr. Boniface Okezie, National Coordinator, Progressive Shareholders Association of Nigeria, called on Etisalat to settle the debt owed the commercial banks to avoid legal action, adding however that the affected banks should approach the court for receivership if Etisalat failed to settle the debt.
He stated that the banks had obligations to their shareholders, insisting that the debt must be paid. Also, Mr. Godwin Anono, the Chairman of Nigeria Professional Shareholders Association, said that the network operator should settle the debt and desist from making unnecessary noise about the whole thing. He said the transaction was in line with customer-banker relationship, noting that the terms and conditions of the loan must be met. Anono said that the shareholders were in support of the banks to acquire the company if Etisalat failed to settle the loan. “This is like any other transactions, it’s not government business and I stand on existing protocols that the banks should acquire the company,” he said.
In his view, Mr. Sewa Wusu, Head of Research, SCM Capital Ltd., said that the issue of loan between Etisalat and the consortium of banks was a customer-banker relationship, which ought to be settled amicably with terms agreeable to both parties. He said that the issue was beginning to elicit concerns in the banking industry given the level of the amount involved and its potential impact on the balance sheets of the banks involved. “But I think the monetary authority is also involved to ensure prompt settlement of the situation among the parties,” he said. Etisalat Group in the United Arab Emirates, on June 20, said it had transferred its 45 per cent stake and 25 per cent preference shares in Etisalat Nigeria to a loan trustee. It said it had been notified to transfer its stake by June 23, saying that the stake had a carrying value of zero on its books. However, in the last few months, Etisalat Nigeria has been in talks with Nigerian banks to restructure $1.2 billion loan after missing repayments. The loan is a seven-year facility agreed with 13 banks in 2013 to refinance a $650 million loan and for funding expansion of its network. Although the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) had stepped into the fray to prevent a takeover by the banks, the discussions failed to produce an agreement on the debt restructuring.Another meeting with the regulators is scheduled for Friday or Monday according to sources familiar with the transactions.
But as the shareholder groups fret over Etisalat’s indebtedness to the banks, another crisis is about to rear its head in the petroleum sector which may lead to fuel shortages around Nigeria, following the move by 18 Nigerian lenders to commence the process of classification of loans that were extended to oil marketers and depot operators in the downstream sector of the oil and gas industry, but is now turning bad in the books of the banks following the failure of the Finance Ministry to pay subsidy and FX differential claims from 2013 and 2014.
THISDAY gathered that if the debts are not paid by the marketers and the Federal Ministry of Finance, the banks will begin seizing the marketers’ tank farms in lieu of the NPLs, which could potentially lead to massive job losses in the sector and fuel shortages. The indebtedness of the marketers to the banks followed the failure of the federal government to pay the outstanding subsidy claims and matured letters of credit (LCs) arising from the old subsidy regime, which amounted to about $2 billion. THISDAY had reported that the huge debts, which grew as a result of the naira devaluation and the interest charges by the banks that funded the importation of fuel cargoes, have since forced foreign banks such as the Citi Bank, BNP Paribas and others to stop opening lines of credits for oil marketers.
The development has also led to the Nigerian National Petroleum Corporation (NNPC) assuming the role of sole importer of petrol, as marketers focus on the importation of diesel, which has no price cap, having been deregulated. There are also speculations that the marketers could shut down their depots on July 1, in protest against their unpaid subsidy claims. When contacted by THISDAY, the Chairman of Depot and Petroleum Products Marketers’ Association (DAPPMA) and Chief Executive Officer of Heyden Petroleum Limited, Mr. Dapo Abiodun declined to speak on the alleged threat by the marketers to shut down their depots on July 1. Also, the Executive Secretary of DAPPMA, Mr. Femi Adewole said he was not aware of any planned shutdown of depots by DAPPMA but confirmed that the banks have initiated moves to seize the tank farms of marketers for failure to liquidate the loans. According to him, lack of working capital due to huge debts owed marketers by the federal government has eroded their ability to source funds from the banks for imports. “Banks have equally classified marketers’ accounts with the aim of seizing tank farms due to the bad loans,” he said. “When we say that the banks have classified the accounts of a marketer, we mean that such a marketer is owing one bank a loan whose repayment is long overdue and no other bank would give such a company any loan whatsoever,” Adewole added.
Documents obtained by THISDAY showed that when the debts owed the marketers by the federal government was last reconciled in 2016, the outstanding balance was $1,522,111, 841.10. The documents also showed that the Major Oil Marketers’ Association of Nigeria (MOMAN) and DAPPMA members were originally indebted to 18 Nigerian banks to the tune of $1,184,621,931.17 before interest charges and exchange rate differentials pushed the outstanding claims to $2 billion, according to marketers, who spoke off the record. Detailed data on the marketers’ original indebtedness to the 18 banks revealed that 16 banks initially had $911,336,510.11 as outstanding unliquidated LCs with DAPPMA members, while nine banks had $273,285,421.06 as outstanding unliquidated LCs with MOMAN members. According to the marketers, no reconciliation of unpaid subsidy claims has taken place between the marketers and the federal government since the beginning of 2017.
In a communiqué at the end of a recent meeting in Lagos, DAPPMA had expressed the fears that the Asset Management Corporation of Nigeria (AMCON) might take over their tank farms as a result of the NPLs. “Some of our members have resorted to staff retrenchment due to inactivity,” the marketers had added. Acting President Yemi Osinbajo at a meeting on May 22 was said to have directed the Minister of Finance, Mrs. Kemi Adeosun to initiate the process of paying the oil marketers all outstanding subsidy claims. Osinbajo had summoned the meeting with the marketers in which Adeosun, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu and the central bank governor, Mr. Godwin Emefiele were said to be in attendance. France to Invest €1bn
But despite the oil marketers’ woes, France yesterday disclosed that it has set aside about €1 billion to invest in the nation’s oil and gas industry, stating that Nigeria would remain its first economic trading partner in Africa. According to NNPC, the French Ambassador to Nigeria, Mr. Denys Gauer stated this when the Group General Manager, Public Affairs Division of the corporation, Mr. Ndu Ughamadu led a delegation to visit the ambassador in his office in Abuja. Gauer, said in a statement from the NNPC signed by Ughamadu, that the €1 billion had been put in place by French development agency to encourage French investors to invest in Nigeria’s oil sector. He however did not provide details on the fund’s application. He noted that the French government was also cooperating with the federal government in its fight against the Boko Haram insurgency in North-east. Gauer equally commended the government for stemming the insecurity in the Niger Delta and explained that Total, a French multinational oil company, has significant investments in the Nigeria Liquefied Natural Gas (NLNG) Company and Egina deep water oil project. Notwithstanding the reported commitment of France to Nigeria, Gauer also expressed concern that some other French companies were having challenges with what he described as Nigeria’s unclear fiscal policies in the oil sector.
He said, however, that some French investors were currently developing wind energy and solar energy in Katsina State. The statement said Ughamadu informed Gauer that the NNPC under the current management led by the Group Managing Director, Dr. Maikanti Baru, was well positioned and open to investment opportunities from France and its investors. He said with the significant drop in pipeline vandalism and insecurity in the Niger Delta, which he noted has boosted oil production, global investors such as those from France can now invest in renewable energy; gas and power infrastructure development; pipeline construction; storage facilities; and the direct sales and direct purchase of Nigeria crude oil grades. Ughamadu said NNPC as the state-owned oil and gas corporation has global operations and called for closer collaboration between it and the French government, especially in the area of consular services in order to enable its top executives and staff meet their global engagements. He also assured Gauer that the leadership at the NNPC was determined to develop a robust business atmosphere for investors.
Forte Oil Plc has said it is planning to sell shares worth N20bn to institutional and high net worth investors, and has applied for regulatory approval for the transaction.
The energy firm said on Monday that the capital raising would be done as a public offer for shares through a book-building process to help price discovery, adding that it had applied to the Securities and Exchange Commission and Nigerian Stock Exchange for approval.
It said its core investor, Zenon Petroleum and Gas Limited, owned by billionaire, Femi Otedola, with a total stake of 62.97 per cent in the company, would not participate in the offer, according to Reuters.
Nigerian companies are going through a tough time brought on by low oil prices, which tipped the economy into a recession, depleted the country’s foreign reserves, weakened the currency and caused chronic dollar shortages, thereby frustrating businesses.
Several firms, including Guinness Nigeria Plc, reported losses last year due to the weak economy, and are set to raise funds from existing shareholders.
In 2016, Forte Oil posted a 24 per cent fall in pre-tax profit, which knocked it shares down by 74.4 per cent.
This year, the shares have fallen by 34.2 per cent, giving it a market value of N68.8bn. It ended 4.98 per cent down to N52.81 on Monday, underperforming the main index, which gained 0.96 per cent.
On Monday, Forte Oil said it was on track to achieve its target for 2017 and that based on its performance so far, it could pay out half of its earnings as dividend.
It said its fuel distribution and power business accounted for 95 per cent of its operating profit and that it hoped to announce its half-year audited account before July 31.
“The outlook remains positive on the back of the renewed peace in the Niger Delta…while the passing of the Petroleum Industry Governance Bill by the Senate is another positive,” it added.
Last year, the energy firm planned to raise N100bn in debt or equity for expansion. It later sold N9bn in five-year bonds.
Nigeria’s IPO market has dried up for almost a decade following a stock market crisis with regulators struggling to revive it. In March, SEC proposed to cut listing fees to attract issuers.
Last year, stocks shed 40 per cent in dollar terms after the naira fell by a third due to the Central Bank of Nigeria’s currency curbs. This year, stocks have recovered after the CBN in April allowed investors to trade the naira at market rates.
Mutual Benefits Assurance Plc, said that it grew its underwriting income by 27per cent from N8.3 billion in 2015, to N10.7 billion for the year ended December 31, 2016.
The company, in its audited financial statement recently released on the floor of the Nigerian Stock Exchange (NSE), said its underwriting Profit (non-life and life) grew by 16 percent to N4.1 billion, from N3.6 billion in 2015, which according to it, was one of the highest in the industry.
The result also showed that the Mutual Benefit Group, paid out claims amounting to N3.3 billion, which shows 43 percent increase from the N2.3 billion paid out in 2015. This development, the company’s Chairman, Akin Ogunbiyi, said was in line with the Mutual Benefit’s commitment to honouring its obligations and delighting its customers, while improving customer service excellence .
He said that despite the challenging economy and consumer apathy towards insurance, the result was achieved through its improved risk retention policy. Other contents of the audited financial statement showed that in the year under review, the company’s investment income, stood at N966 million, representing 13 percent increase against N854 million recorded in 2015 .
Speaking on future growth plan of the company, the Head Corporate Communications of Mutual Benefit, Ellen Offo, said a few months back, Mutual Benefit Assurance, in conjunction with KPMG, embarked on a strategic five year roadmap for the company aimed at repositioning it for future opportunities and challenges. She said the plan focussed on four key areas of the company’s business, namely deepening Market penetration and customer acquisition; achieving customer service delivery excellence; transforming people and culture as well as driving operational effectiveness.
She also said that the organisation was investing in technology and developing innovative customer-centric products that meet the needs of current and potential customers, while increasing its market share.
