Ecobank Reiterates Its Commitment As “The Partner Of Choice For Export Trade”

Esan Bolaji
-
0
Ecobank Reiterates Its Commitment As “The Partner Of Choice For Export Trade”

Ecobank has reiterated that it remains the partner of choice in Africa for export trade because of its unique positioning, wide network, pan African payment switch, settlement capabilities, award-winning digital products and strategic focus.

Kola Adeleke, Executive Director, Corporate Banking, Ecobank Nigeria made this assertion while speaking on African Continental Free Trade Area (AfCFTA) strategy, opportunities, challenges in export and trade at Ecobank/Nigerian Export-Import Bank (NEXIM) webinar for exporters on Thursday.

Ecobank Bags Best Retail Bank In Nigeria 2020 at Asian Banker Awards Brandspurng

He maintained that the pan African bank has structures in place to enable exporters to exploit the opportunities in The African Continental Free Trade Area (AfCFTA).

According to him,

“Our unique positioning in 33 African countries enables us to leverage our extensive network to reduce the number of financial partners and relationships in executing a trade. We own the switch connecting countries where we operate across Africa. This centralized switch enables easy integration.

We possess knowledge of the local markets in which we operate resulting in unparallel financial advisory. We offer real-time settlement across Africa and our customers enjoy instant transfers across 33 African countries.

Ecobank has a reputation for developing innovative products as the bank has won us several international, regional and local awards and we aspire to be the gateway to pan-African payments and trade.”

Mr Adeleke reaffirmed that Nigeria is poised to gain from the investment and trade opportunities that the AfCFTA will inevitably bring because of its market size, supply chain infrastructure and an abundant supply of professionals/skilled players in various industries.

He emphasized that businesses must strategically position themselves, endeavour to understand the dynamics of the ratification to be able to maximize the benefit and opportunities.

Adeleke, who regretted that export potentials in Nigeria is largely untapped due to focus on oil revenues, reiterated that real sector credit opportunities to utilizing the AfCFTA includes Export development financing, trade finance, Export development financing and SME financing.

In his presentation on Export Trade Insurance, Bashar Garba Illo, Acting Head, Export Credit Insurance, NEXIM, said the Export Credit Insurance (ECI) is designed to protect exporters in Nigeria against the risk of Non-Payment for goods and services exported on credit terms with a cover against Political Risk, stressing that the objective of ECI is to indemnify both Internal and External exporting customers from losses incurred from any payment default that could arise from political events in the export destination country by providing cover up to 80% of the value of receivables, subject to the Risk Asset Acceptance Criteria (RAAC) outlined for Political Risk.

Ecobank Partners NEXIM Bank, Unveils Trade Opportunities For Exporters
Ecobank Partners NEXIM Bank, Unveils Trade Opportunities For Exporters

He explained that the Bank’s mandate is to support the non-oil export sector of Manufacturing, Agro-processing, Solid Mineral and Services.

Also at the session was Chijioke Uzoukwu, Head of Trade, Ecobank Nigeria, who listed the Ecobank products and services on offer to support Export Trade as comprising letters of credit, bonds, guarantees as well as bills for collections civilization.

He said

“The Bank also provides loans for business such as import loans, export loans and supply chain finance. In the trade service, we support customers from initiation to execution in the areas of documentation and compliance, working with regulatory bodies and other stakeholders.

We also offer trade advisory solution like market information across Africa, trade specialist support and after-sales services. We have an electronic e-trade platform that provides an electronic frontend where the customers can initiate transactions and instruction from the comfort of their home and it will be delivered to the Bank.

We also have various collection channels to optimize collections for a business like in-branch products, Mobile App, POS, Web/ Online collection platforms, Ecobank Pay, Omniplus and Omni lite. The Omni plus has the capability to allow you to make bulk payments and also view your accounts with other banks in a single platform.”

The webinar was a one-day event organised by Ecobank in partnership with the Nigerian Export-Import Bank (NEXIM) with the focus on sharing opportunities AfCFTA offers to Exporters. The event was an expose of the whole gamut of exports as it relates to credit insurance and how small and medium enterprises could benefit from export business taking advantage of the AfCFTA.

BUA Founder, Abdul Samad Rabiu Donates 200 Million Naira To Sokoto State University

Esan Bolaji
-
0
BUA Founder, Abdul Samad Rabiu Donates 200 Million Naira To Sokoto State University

Towards the construction of the ICT Faculty Building at the University. Nigerian Philanthropist and Industrialist, Abdul Samad Rabiu, has donated N200million to Sokoto State University towards the construction of an ICT Faculty Building for the University.

BUA Founder, Abdul Samad Rabiu Donates 200 Million Naira To Sokoto State University Brandspurng
BUA Founder, Abdul Samad Rabiu | www.wordpress-1516176-5827464.cloudwaysapps.com

This donation will support the University’s quest to become one of Nigeria’s best universities producing talent in the ICT space.

Abdul Samad Rabiu uses the BUA Foundation for his philanthropic activities. These include the construction of a 7,000-square-meter paediatric ward at the Aminu Kano Teaching Hospital and the construction of the Centre for Islamic Studies at Bayero University Kano amongst several others.

BUA Cement Plc, Nigeria’s second-largest cement company, announced its 2020 full-year revenues of N209billion representing an increase of 19% from the corresponding period in 2019.

Highlights.

  • Revenue rise 19% to N209billion (FY2020)
  • Gross Profits increase by 16% to N95.4billion (FY2020) from N82.4billion Naira (FY2019)
  • PBT rise by 19% to N79.06billion (FY2020) from N66.23billion (FY2019)
  • Sales Volumes rise to 5,100,232tons (FY2020) from 4,501,150tons (FY2019)

BUA Cement Plc N100Bn Bond Issuance Now Open

Domestic Equities Index Declines by 2.89% on Banking Stocks

Cowry Research
-
0
Domestic Equities Index Declines by 2.89% on Banking Stocks
In the just concluded week, sentiment remained negative in the market as equities sell-off persisted despite the dividend announcement by corporates.

Notably, yields at the fixed income space continue to move upwards as the stop rate for the 364-day treasury bill rose to 6.5% (from 5.5%); hence, investor appetite for stocks weakened.

Against this backdrop, the ll-Share Index moderated by 2.89% w-o-w to 38,648.48 points, while the year-to-date loss worsened to -4.03%. Losses were broad-based as all sub-indices tracked closed in red territory except for the NSE Industrial index which rose by 1.34% to 1,923.55 points.

Naira Gains against the USD at the Bureau De Change, Parallel (“black”) Markets Brandspurng
Afolabi Sotunde Illustration Naira

The NSE Banking index plunged by 7.58% to 353.75 points. Also, the NSE Consumer Goods, NSE Insurance, and the NSE Oil/Gas indices tanked by 4.26%, 2.29% and 1.59% to close at 539.85 points, 197.46 points and 261.18 points respectively.

Meanwhile, trading activity was weak as total deals, volume and value of stocks traded fell by 13.21%, 22.61% and 30.73% to 21,036 deals, 1.61 billion shares and N20.60 billion respectively.

In the new week, we expect the domestic equities market to slip further as investors stay on the sidelines to target new support levels.

However, a decline in stop rate, especially for 364-day at the primary market auction, in the new week, may change trading dynamics in equities towards the end of the trading week.

Bitcoin Hits $60,120

Esan Bolaji
-
1
Bitcoin Hits $60,120

Bitcoin price has once again captured a new lifetime price high reaching $60,120 per coin on Saturday morning, March 13, 2021. During the last 24 hours, Bitcoin gained 6.9% and over 23% during the last seven days.

Bitcoin Touches $18K, Crypto Asset Looks to Smash All-Time High, ETH Price Could Spike 20x

At press time, BTC has around $27 billion in global trade volume.

Bitcoin price cracked a new all-time high reaching $60,120 per unit at around 6:25 a.m. (ET).

Bitcoin now has a 1.12 trillion-dollar market valuation and a dominance level of around 61.9% while Ethereum now commands close to 12% of the $1.70 trillion capitalizations of all 8,792 digital assets in the crypto economy.

Statistics show that bitcoin (BTC) has gained 212% during the last three months and 975.83% against the U.S. dollar during the course of 12 months. One-month percentage stats show BTC is up over 24% on Sunday.

The Citi GPS report explains that “the biggest change with bitcoin is the shift from it being primarily a retail-focused endeavour to something that looks attractive for institutional investors.”

The firm attributes the change to “Specific enhancements to exchanges, trading, data, and custody services” that are “increasing and being revamped to accommodate the requirements of institutional investors.”

Top Three US Mobile Network Carriers Bid $78 Billion On 5G Airwave Licensing

Esan Bolaji
-
0
Top Three US Mobile Network Carriers Bid $78 Billion On 5G Airwave Licensing

Top US carriers Verizon, AT&T, and T-Mobile were the winners of an $81 billion auction for highly coveted 5G airwaves.

According to the research data analyzed and published by Sijoitusrahastot, Verizon placed the top bid of $45.45 billion through its Cellco subsidiary. AT&T took second place with a $23.41 billion bid placed through AT&T Spectrum Frontiers.

In third place was T-Mobile with a $9.34 billion bid. In total, the three top carriers bid $78.2 billion, accounting for 90% of the licenses that were up for auction.

The remaining 10% went to United States Cellular Corporation and New Level II L.P., which bid $1.282 billion and $1.277 billion, respectively. US Cellular is ranked as the fourth-largest carrier in the US. On the other hand, New Level II is a representative for Grain Management, a private equity firm.

In terms of the number of licenses issued, Cellco Partnership (Verizon) took the lead with 3,511 out of 5,684 licenses or 56% of the total. It more than doubled AT&T’s 1,621 licenses, which was 29% of the available tally. US Cellular was third with 254 licenses, T-Mobile fourth with 142, and Canopy Spectrum fifth with 84.

READ ALSO: Bolt Launches #Drive4WITech Internship Programme For Women

Commonly referred to as the Goldilocks spectrum, the airwave in question is mid-band spectrum. That means the frequency of the wavelength is in the middle, not too high or too low.

Very high frequencies pump large amounts of data but only travel short distances. The lowest frequencies travel long distances but are limited in the amount of data they can transmit. The Mid-band spectrum is, therefore, ideal for 5G in the sense that it travels long distances and transmits large amounts of data at high speed.

T-Mobile’s Spectrum Holdings Rise to 301 MHz vs Verizon’s 192 MHz

There were 280 megahertz of spectrum available, split into blocks of 20 MHz in 406 geographic regions.

According to the Federal Communications Commission (FCC), all bidders spent a total of $80.9 billion on the auction. There were 97 bidding rounds and the total was much higher than its summer forecast range of $20 to $30 billion.

The auction left a significant dent on the balance sheets of the three top US carriers, especially Verizon and AT&T. In order to secure the spectrum, Verizon secured two loans worth a total of $25 billion, payable in full a year from the funding date. AT&T borrowed $14 billion from a group of banks.

T-Mobile already had licenses for a different block of mid-band spectrum. This is courtesy of its $26 billion purchase of Sprint in April 2020. Verizon and AT&T, however, did not have much of it. The three companies have invested billions to make their 5G networks a reality.

If Evercore’s analysis proves accurate, Verizon will end up with 192 MHz of mid-band spectrum after the recent win. Comparatively, T-Mobile could have up to 301 MHz and AT&T at 167 MHz.

According to the analysts, if Verizon had purchased all of the mid-band spectrum that was up for grabs, it would only have surpassed T-Mobile’s holdings by 16%.

US Big Three Carriers’ Capex was 55% of Expenditure On Mid-Band Spectrum

Verizon attempted to make up for its lack of mid-band spectrum with ultra-wideband 5G. Though the option offers high speed, the waves do not travel fast. The auction win means it can now build a high-speed network without having to build towers on every block.

After its purchase of Yahoo and AOL, Verizon took an all-in approach to 5G, sticking to its core competency. In 2020 it maintained its top ranking in network quality for the 26th consecutive time in 13 years according to the JD Power rating. It broke the record for the most awarded brand for JD Power Wireless Network Quality.

On the other hand, AT&T has considerable investments in media properties including WarnerMedia and DirecTV. WarnerMedia faces tough competition in the streaming sector from Disney and Netflix. AT&T has been under pressure to sell DirecTV as many industry experts consider it a failure.

In Q4 2020, AT&T took a $15.5 billion write-down on video assets in its DirecTV segment and a $780 million write-down due to WarnerMedia losses. Revenue from WarnerMedia dropped 9.5% during the quarter to $8.5 billion.

 

AT&T’s capex for 2020 was $15.6 billion, and it reported $171.8 billion in revenue and income of $5.2 billion. Verizon’s capex for 2020 amounted to $18.2 billion, with revenue at $109.9 billion and $18.3 billion in net income. T-Mobile’s capex was $11 billion, and it reported $68.4 billion in annual revenue, with net income at $3 billion.

Overall, the three carriers’ collective capex for 2020 was a mere 55% of the amount they spent on mid-band spectrum licensing.

Bolt Launches #Drive4WITech Internship Programme For Women

Esan Bolaji
-
0

In celebrating International Women’s Month and as part of its efforts to drive more participation and inclusion for women in technology, the fastest-growing ride-hailing platform in Africa, Bolt has launched the #Drive4WITech initiative.

Brand Spur Nigeria understands that #Drive4WITech is a paid internship programme for young women who choose to challenge the status quo and jumpstart a technology industry career.

The month-long programme, which aims to bridge the gap for women and create more opportunities for gender inclusion in the technology sector, offers 12 internship opportunities in Operations, Public Relations, Marketing and Engineering to women across Africa with three selections from Nigeria. Candidates will have the chance to start a career in tech and make a difference in the ride-hailing space.

READ ALSO: Global Consumer Electronics Revenues To Grow By 3.6% YoY And it $1.06T in 2021

For women to be part of this programme, they will first be nominated on social media by nominators who will make a case for why their nominee deserves an internship role with Bolt and how they can contribute to the industry if given the opportunity.

In their journey to build a formidable career, the 12 recipients will be selected for internship roles in Operations, Public Relations, Marketing and Engineering with access to learning from top Bolt executives across Europe and Africa.

Commenting on the initiative, Bolt Country Manager Femi Akin-Laguda said, “The tech industry continues to be a haven for growth, and we must continue to tap into its resources to prepare for the future. At Bolt, we understand the importance of women in societal development.

Bolt Launches #Drive4WITech Internship Programme For Women- Brand Spur Nigeria
Bolt Launches #Drive4WITech Internship Programme For Women- Brand Spur Nigeria

“In commemorating International Women’s Day, we established the #Drive4WITech programme, ensuring capacity building for young women and creating a gender balance for impact in the technology and transportation sector.

“Through initiatives like this, we continue to show our support for women in creating a diverse and inclusive society.”

While more women are interested in participating in tech, the sector still has a long way to go to attain a greater gender balance. Bolt’s internship programme will further enhance the opportunities and impact of women towards contributing to the technology sector.

The top finalists will be announced in April, and the internship program will begin in May 2021.

How To Apply

  1. Nominate her with a post on your social media (Twitter or Instagram) making a case for why she deserves the Internship role and what she would contribute to the tech space if given the opportunity using the hashtag #Drive4WITech.
  2. Tag the Bolt account handle so we can see your nomination (@bolt_nigeria on Instagram and @boltapp_ng on Twitter)
  3. Bolt will only invite the top nominees for a pitch-round interview, so be sure to tag her in your post and make a strong case
  4. To ensure that bolt find your entry, you are advised to tag Bolt and double-check that you are using the correct hashtag

 

Kamala Harris to Deliver Special Remarks During Nickelodeon’s Kids’ Choice Awards 2021

Esan Bolaji
-
0
Kamala Harris to Deliver Special Remarks During Nickelodeon’s Kids’ Choice Awards 2021

Vice President Kamala Harris will deliver special remarks during the Nickelodeon’s Kids Choice Awards 2021 on Monday 15 March at 16h30 WAT on NickToons (DSTV Channel 308). The Vice President, who will be introduced by actress Jennifer Garner, is set to appear as part of the show’s Generation Change presentation, which recognizes kids’ strength and courage to create a better world for future generations.

“Vice President Kamala Harris is a pioneer and role model for us all, but especially for today’s kids, who can find inspiration in the story of her path forward and the barriers she has broken from childhood to today,” said Marva Smalls, ViacomCBS Global Head of Inclusion and Executive Vice President, Public Affairs, Kids & Family Entertainment.

Kamala Harris to Deliver Special Remarks During Nickelodeon’s Kids’ Choice Awards 2021 Brandspurng
Vice President Kamala Harris | www.wordpress-1516176-5827464.cloudwaysapps.com

“Nickelodeon is proud to bestow this year’s Generation Change Award to kids everywhere, and we’re honoured to have the Vice President further trumpet the courage and vitality they have in the wake of so many challenges.”   

Generation Change is ViacomCBS’ pro-social initiative that connects leaders and innovators with young voices to inspire positive change in communities through civic engagement.

Over the past several years, Generation Change has recognized some of the most noted thought leaders and influencers of our time including athlete LeBron James for his philanthropic work with the groundbreaking “I Promise School,” and Co-Captain of the U.S. Women’s National Team and two-time World Cup champion Megan Rapinoe for her passion to create positive changes, build social movements, and make sports and the world a more equal playing field when it comes to gender, race and LGBTQ+ rights.

Kenan Thompson Brandspurng Ikorodu Bois, Emmanuella, and Others nominated for Nickelodeon’s Kids’ Choice Awards 2021 
Kenan Thompson | www.wordpress-1516176-5827464.cloudwaysapps.com

Hosted by Kenan Thompson, and featuring show-stopping performances from Grammy® Award-winning global superstar Justin Bieber, Nickelodeon’s Kids’ Choice Awards 2021 will air live on Monday 15 March at 16h30 WAT on NickToons (DSTV Channel 308)  and showcase fan-favourite stars across the worlds of film, television, music, sports and more.  

For more information on this year’s show, click HERE.  

Nickelodeon’s Kids’ Choice Awards 2021 is produced by Nickelodeon Productions and overseen by Rob Bagshaw, Executive Vice President, Unscripted Content. Michael Dempsey serves as executive producer, with Amy Johnson and Magda Liolis serving as co-executive producers. Nickelodeon’s Unscripted Content executives Rob Bagshaw and Paul J Medford also serve as executive producers. The ceremony is directed by Glenn Weiss.

IWD 2021: Celebrating Women Isn’t An Excuse To Be Incompetent – Omolara Adeogo

Esan Bolaji
-
0
IWD 2021: Celebrating Women Isn’t An Excuse To Be Incompetent – Omolara Adeogo

A call has been made to all women around the world to rise and challenge gender discrimination, bias, inequality, and stereotype against women in society.

This was made known during a webinar session organized by Brand Spur in commemoration of the 2021 International Women’s Day with the theme: #ChooseToChallenge which took place on March 8th, 2021.

IWD 2021: Celebrating Women Isn’t An Excuse To Be Incompetent — Omolara Adeogo - Brand Spur Nigeria
Omolara Adeogo- Brand Spur Nigeria

The 2021 IWD tagged #ChooseToChallenge is aimed at challenging all forms of biases against women, gender discrimination, celebrate women’s achievements, and taking action for equality.

The guest speaker at the webinar, Omolara Adeogo, Coach/Trainer, Boss Management Hub and Qualitative Research Project Manager in Kantar, the world’s leading market research company said by challenging the status quo in society, we promote inclusiveness and make the world a better place adding that a challenged world is an alert world.

IWD 2021: Celebrating Women Isn’t An Excuse To Be Incompetent — Omolara Adeogo
Omolara Adeogo, Coach/Trainer, Boss Management Hub and Qualitative Research Project Manager in Kantar | Brand Spur Nigeria

READ ALSO: Latest Brand Spur Nigeria News Headlines For Today, Friday, March 12th, 2021

In her words, “Often times when we say the word equality, people have the notion or impression that what we are saying is that we want to be like men but it’s about providing equal opportunities, equal resources to be whoever we want to be, to do whatever it is we want to do as women and there shouldn’t be any limitation and that itself is empowerment.”

Omolara added that discrimination and bias against women have been putting women at a disadvantage which should have been an equal right for both genders. According to her, every woman should be given the right to vote, the right to run for elective office, fair remuneration, the right to education and more.

She frowned at the form of discrimination affecting women around the world which include denial of female children’s right to access formal education in some part of Northern Nigeria, the inability of Igbo women to inherit property from their fathers, female genital mutilation.

The inability of women to testify in court and more. “If we don’t challenge these things, they will affect the world. It’s a journey we need to be consistent about”. She said. Though this discrimination exists in society, Omolara, however, challenged women to be more competent and work on adding value in their workplace or in their business, thereby making a significant difference.

She added that women can make a difference by improving their competencies at the workplace or in business by speaking out to be heard at the workplace and never stay silent in meetings as their opinions matter as employees, flexible to open evaluation and educate their minds.

Asked whether there have been changes in gender discrimination in the past few years, Omolara added that there have been changes but, there is still a need for improvements.

“It is a journey, if there are no changes, the likes of Ibukun Awosika would probably not be chairman of First Bank and we even have a current chairman for Access Bank and others. There is progress, there are changes happening, but we need to continue as employees because if you know better you do better.”

She also called for more women supporting women in the workplace and challenging the biases, stereotypes, and discrimination against women.

International Women’s Day is a global holiday celebrated annually on March 8 to commemorate the cultural, political, and socioeconomic achievements of women. It is also a focal point in the women’s rights movement, bringing attention to issues such as gender bias, reproductive rights, and violence against women.

WHO Adds Janssen Vaccine To List Of Safe And Effective Emergency Tools Against COVID-19

Esan Bolaji
-
0
WHO Adds Janssen Vaccine To List Of Safe And Effective Emergency Tools Against COVID-19

Geneva, 12 March 2021 – The World Health Organization (WHO) today listed the COVID-19 vaccine Ad26.COV2.S, developed by Janssen (Johnson & Johnson), for emergency use in all countries and for COVAX roll-out.

The decision comes on the back of the European Medicines Agency (EMA) authorization, which was announced yesterday.

“Every new, safe and effective tool against COVID-19 is another step closer to controlling the pandemic,” said WHO Director-General, Dr Tedros Adhanom Ghebreyesus. “But the hope offered by these tools will not materialize unless they are made available to all people in all countries.

“I urge governments and companies to live up to their commitments and to use all solutions at their disposal to ramp up production so that these tools become truly global public goods, available and affordable to all, and a shared solution to the global crisis.”

The vaccine from Janssen is the first to be listed by WHO as a single dose regimen, which should facilitate vaccination logistics in all countries. The ample data from large clinical trials shared by the company also shows that the vaccine is effective in older populations.

To expedite the listing of the vaccine, WHO and a team of assessors from all regions adopted what is called an ‘abbreviated assessment’ based on outcomes of the EMA review, and evaluation of quality, safety and efficacy data focused on low- and middle-income country needs. The WHO assessment also considered suitability requirements such as cold chain storage and risk management plans to be implemented in countries.

While the vaccine needs to be stored at -20 degrees, which may prove challenging in some environments, it can be kept for three months at 2-8°C and it has a long shelf life of two years.

WHO will convene its Strategic Advisory Group on Immunization Experts next week to formulate recommendations on the use of the vaccine.

READ ALSO: Latest Brand Spur Nigeria News Headlines For Today, Friday, March 12th, 2021

In the meantime, WHO continues to work with countries and COVAX partners to prepare for roll-out and safety monitoring. The COVAX Facility has booked 500 million doses of the vaccine.

WHO Emergency Use Listing

The emergency use listing (EUL) procedure assesses the suitability of novel health products during public health emergencies. The objective is to make medicines, vaccines and diagnostics available as rapidly as possible to address the emergency, while adhering to stringent criteria of safety, efficacy and quality.

The assessment weighs the threat posed by the emergency as well as the benefit that would accrue from the use of the product against any potential risks.

The EUL pathway involves a rigorous assessment of late phase II and phase III clinical trial data as well as substantial additional data on safety, efficacy, quality, and a risk management plan. These data are reviewed by independent experts and WHO teams who consider the current body of evidence on the vaccine under consideration, the plans for monitoring its use, and plans for further studies.

As part of the EUL process, the company producing the vaccine must commit to continuing to generate data to enable full licensure and WHO prequalification of the vaccine. The WHO prequalification process will assess additional clinical data generated from vaccine trials and deployment on a rolling basis to ensure the vaccine meets the necessary standards of quality, safety and efficacy for broader availability.

WHO has also listed the Pfizer/BioNTech, Astrazeneca-SK Bio, and Serum Institute of India vaccines for emergency use.

Agusto & Co. 2021 Nigerian Insurance Industry Report: Forging Ahead Despite Headwinds

Esan Bolaji
-
0
Agusto & Co. 2021 Nigerian Insurance Industry Report: Forging Ahead Despite Headwinds

Agusto & Co. Limited, the pan-African credit rating agency and the foremost business information provider has released its 2021 insurance industry report.

The 2021 edition of the annual report provides a comprehensive review of the insurance landscape in Nigeria and the near-term expectation for the Industry.

Contained in the report is a review of the coronavirus pandemic, as it affects the Nigeria insurance industry and strategies adopted by insurers to minimize the associated disruptions while optimizing the opportunities provided by the pandemic. Agusto & Co. estimates a 15% growth in Gross Premium Income (GPI) for the financial year ended 31 December 2020.

Innovation in product distribution induced by the pandemic, regulatory-backed opportunities including the digitization of marine insurance certificates and increasing awareness of the benefits of insurance products were some of the GPI growth drivers during the 2020 financial year.

According to Agusto & Co., the violence that trailed the #EndSARS protest in October 2020 adversely impacted the Industry in terms of additional claims, which in turn impaired profitability for the 2020 financial year and would moderate the performance of some insurers in 2021.

Nonetheless, the riot that trailed the protest emphasized the importance of insurance products, particularly with the absence of a robust social security system in Nigeria. According to Agusto & Co., the violence/riot that trailed the protest could be a catalyst for insurance uptake, given that the insurance penetration rate has remained less than 1% in Nigeria.

READ ALSO: Latest Brand Spur Nigeria News Headlines For Today, Friday, March 12th, 2021

Agusto & Co. expects the on-going recapitalization exercise to change the structure of the Industry. The persistent naira devaluation has reduced the strength of the Industry’s capital since the last recapitalization exercise in 2007.

Although some insurers have strengthened their capital base through earnings retention, the ability of most Industry operators to solely underwrite large ticket transactions has dwindled based on the lower value of the capital in USD terms. As at 31 December 2020, the Industry had an estimated capital base of $1 billion, significantly lower than the $2.2 billion recorded as at 31 December 2007.

As a result, the National Insurance Commission (NAICOM), the apex regulator in the Industry, raised the minimum capital to ₦8 billion (from ₦2 billion), ₦10 billion (from ₦3 billion), ₦18 billion (from ₦5 billion) and ₦20 billion (from ₦10 billion) for life insurers, non-life insurers, composite insurers and reinsurance firms respectively.

The recapitalization exercise has suffered some setbacks particularly as the COVID-19 pandemic ravaged the global economy, Nigeria inclusive. Consequently, NAICOM postponed the deadline for the recapitalization exercise which was later stratified into two phases; December 2020 and September 2021.

In addition, litigation by some Industry operators and aggrieved shareholders resulted in the postponement of the December 2020 deadline for the first phase of the recapitalization exercise.

Notwithstanding the setbacks, Agusto & Co. believes the recapitalization exercise could be a watershed in the Industry. In addition to the benefits accruing from a larger capital base from a risk underwriting perspective, improved investment management practices will be upheld by a larger investment portfolio driven by a need to generate adequate returns.

The recapitalization exercise has elicited mergers and acquisition transactions in the Industry. Agusto & Co. anticipates an uptick in these transactions as the deadline draws near. The shareholding structure of most insurers is expected to change in the near term as some investors leverage the exercise to either gain or increase exposure to the Industry.

With the gradual rebound of the global economy, more foreign investors are expected in the Industry, given that the naira devaluation has reduced the value of insurance companies (in USD terms), despite the undisputed opportunities in the Nigerian insurance industry.

The entry of new players after the embargo that lasted over a decade was a key point in the Industry. In November 2020, six new operators were licensed in the life, non-life, and reinsurance segments of the Industry.

The firm anticipates the entry of more players, particularly from existing financial institutions seeking opportunities for diversification of income. Agusto & Co. believes that the new players will intensify competition in the Industry. New insurance products and business practices are also expected from these new players.

Agusto & Co. expects a better performance by the Industry in the near term on the opportunities accruing from the pandemic and the #Endsars is optimized.

The gradual increase in the prevailing interest rate will also support the investment income of insurers. It is expected that more innovative product distribution channels will be introduced to reduce the dominance of insurance brokers. Notwithstanding, Agusto & Co. believes the insurance brokers will remain strategic to the Nigerian insurance industry given the wholesale focus of the Industry.

PAID CONTENT

1...2,0702,0712,072...3,971Page 2,071 of 3,971