NAICOM to sanction underwriters for late submission of financial accounts
Nigerian insurance firms, whose financial accounts are yet to be summited before March 31, 2017, would be barred from engaging in further business activities, industry regulator, National Insurance Commission (NAICOM), has revealed. The Commission affirmed that it would take action against officials responsible for financial reporting, as well as publish the compliance status of insurance firms on its website for public guidance.
NAICOM maintained that the decision to impose sanctions on such companies became necessary, as their default deprives the Commission, policyholders, insurance intermediaries, analysts and other stakeholders of the relevant information about their performance and financial conditions.
Firm buys Paints and Coatings Manufacturers from AMCON
The Asset Management Corporation of Nigeria (AMCON) has sold the fourth largest equity stake in Paints and Coatings Manufacturers Nigeria (PCMN) Plc to Bizfeat Ventures Limited.
Details obtained by The Nation indicated that AMCON, the bad-debt resolution corporation floated by the government, transferred its 7.4 per cent equity stake in PCMN to Bizfeat Ventures through a negotiated cross deal at the Nigerian Stock Exchange (NSE), where PCMN is quoted.
Qatar Flight Incident was Caused by Bird strike, Says NCAA
The Nigerian Civil Aviation Authority (NCAA) yesterday explained that the reported incident concerning Qatar Airways, which aborted takeoff last Thursday to Doha from Lagos was due to a bird strike.
It said a bird entered one of its engines at take off point. NCAA said Qatar Airways Airbus A330 with registration number, A7 – AED, Flight number, 1408 scheduled operation from Lagos – Doha “received a push back to take off from the Murtala Muhammed International Airport (MMIA) at 14.45hrs UTC. On board were 256 passengers and 10 Crew members.”
‘Declare economic emergency to halt naira’s free fall’
The crippling effects of the persistent fall in crude oil prices, which put significant pressure on the naira against the dollar, would have been mitigated if President Muhammadu Buhari had declared an economic emergency either by executive fiat or writing to the National Assembly for powers to apply price control mechanisms to halt the free fall of the naira.
Speaking with The Nation, a Lagos-based lawyer, Obiora Akabogu, said the situation was abnormal and extra-ordinary, requiring extra-ordinary measures to stem it. He said the president could have asked and obtained more powers from the National Assembly to allow him come up with emergency regulations to stem the tide.
Jaiz targets N5.56 billion profits by 2021
Jaiz Bank Plc, a non-interest financial institution is targeting a profit After Tax (PAT) of N5.56 billion by the end of the 2021 financial year from the current N1.34 billion position.
The bank disclosed this while addressing stockbrokers at the company’s, Facts Behind the Figures, shortly after it listed by the introduction 29.46 billion shares of 50 kobo each at N1.25 per share worth N36.83 billion on the floor of the Nigerian Stock Exchange (NSE).
TSA battles despite rising benefits
The face of the public accounting system has changed for the better. Many thanks to the full implementation of the Treasury Single Account (TSA) scheme, which for years remained in the pipeline until the Federal Government allowed it to run in September 2015.
Before the coming of TSA, handling of the government’s receipts and payments was complex with billions of naira that could have been re-injected into system to lie idle for months in numerous bank accounts while government parastatals borrow from same banks for their operations. The loans came at exorbitant interest rates, and repayment timelines were frustrating.
Operators raise pension fund investment in infrastructure to N1.82bn
The pressure by the government and other investors on the Pension Fund Administrators to invest the growing pension fund in infrastructure to cushion the effect of recession on the economy seems to be paying off as the operators have steadily increased the value of the fund in infrastructure bond.
In May 2015, the operators invested a sum of N568m in infrastructure for the first time; they increased it to N1.35bn at the end of December 2015.
Capital market seeks balance, efficiency in budget implementation
Capital market experts have called for a balanced and efficient approach that takes into consideration the direct and indirect impacts of the national budget on the nation’s capital market in the implementation of the 2017 national budget and in the future preparation of the budget.
They spoke at a seminar on the 2017 budget organised by the Securities and Exchange Commission (SEC). The seminar, the first of its kind organised by SEC, brought together experts with professional, policy and academic backgrounds and brainstormed extensively on the implications of the budget to the capital market in Nigeria.
Nigeria to service $1b Eurobond with N361b
Nigeria is considering a new debt service provisioning of N361 billion ($1.2 billion) for the $1 billion (N305.1 billion) Eurobond which was acclaimed to have been over-subscribed.
When consummated, the development will not only add to the country’s debt stock, its current debt service provision at over N1.4 trillion will rise, and it will deepen the troubled debt-to-revenue ratio which has been impeding the country’s ability to freely finance growth projects.
Tissue paper production guarantees stable cash flow
Are you considering what business you can do at this period of economic recession and still smile to the banks? Then you can consider going into mini manufacturing of tissue paper, also known as toilet paper. The toilet paper manufacturing business has been rated one of the fastest growing manufacturing industries in Africa today.
Toilet paper is a soft tissue paper used for cleaning and sanitary reasons in homes, restaurants, social gatherings, offices, hotels, restaurants, shops, maternity homes, hospitals, educational institutions, churches and clubs, among many others. The use of tissue papers/serviettes just cannot be over-emphasised. It can also be used for other purposes such as absorbing spillage and decorative purposes. The product differs in texture from other tissue papers and is formulated to decompose in septic tanks, whereas some other bathroom and facial tissues do not.
N17.5bn Bad Loans Cripple NERFUND
The acting Managing Director of the National Economic Reconstruction Fund (NERFUND), Mr. Ezekiel Oseni has said the fund was unable to pay staff salaries while majority of the staff had been laid off owing to the N17.5 billion owed it by recalcitrant debtors. He has therefore appealed to the Economic and Financial Crimes Commission (EFCC) to help recover the outstanding amount.
According to him, eight percent of the total customers, who borrowed money accounted for over 81 percent of total non-performing loans.
How forex restriction escalated palm oil price
Nigeria was the world largest producer of palm oil between 1950s and 1960s. It had a market share of 43 per cent, supplying 645,000 metric tonnes of palm oil, on annual basis consumers across the globe.
Sadly the country fell from being the largest producer of oil palm to net importer of the product. It is not surprising therefore that shortly after the commodity was included among the 41 items banned by the Federal Government from accessing official foreign exchange markets in June 2015, the cost of local palm has risen beyond the reach of many. The ban has increased the demand for the product in the market, while production has not increased.
Banks’ deposits rise by N5.33bn in January
BANKS’ deposits rose marginally by N5.33 billion in January thus reversing negative trend recorded in December. However, the naira depreciated to its lowest level in the parallel market last week with the exchange rate rising to N506 per dollar in the market. Meanwhile Nigeria’s Eurobond appreciated last week due to upsurge in demand which halted three weeks of decline.
FG budgets N51bn to revive textile industry
The Federal Government has set aside the sum of N51bn in this year’s budget to promote the development of the garment and textile industry in the country.
The allocation is part of measures aimed at boosting the sector in a manner that will create jobs, support the diversification efforts of the Federal Government and increase the patronage of made-in-Nigeria apparels.
NAICOM should let PenCom know how insurance operates – LASPEC DG
The Director-General of Lagos State Pension Commission (LASPEC), Mrs. Folashade Onanuga, in this interview with Favour Nnabugwu, talks on Lagos State pension for retirees, their welfare and other issues Excerpts
If you were in service before April 2007, there is a certain aspect of your entitlement that ought to be paid up by government which is called accrued right. This commission ensures that the accrued right is credited into the Retirement Savings Account, RSA of the individual. In Lagos State today, we have two sets of retirees but we have been able to separate them.
Food Prices Expected to Crash as Fertiliser Bill Nears Passage
Stakeholders in the agriculture sector have commenced the review the fertilizer quality control bill, so as to checkmate adulteration of the farm input and boost food production in the country. When passed into law, the bill is expected to crash the high food prices as fertiliser is properly deregulated and made readily available to farmers at reasonable prices.
The bill, which has passed second reading in the House of Representative and moved to the Senate, was being reviewed to regulate fertilizer production, supply and usage in the nation, and also ensure that the environment is not polluted with the adulterated farm input.
IBEDC decries vandalism of 250 transformer stations
The Ibadan Electricity Distribution Company has said over 250 transformer substations valued at over N800m have been vandalised across its franchise areas in the last 11 months.
The IBEDC said in a statement on Sunday that apart from inadequate energy generation in the country, vandalism had been one of the major factors hampering the supply of regular electricity to its customers.
Hope Rises for Arik after AMCON Take Over
There are indications that Arik Air which management was taken over on Wednesday by the Asset Management Corporation of Nigerian (AMCON) has started going through a new lease of life. According to the head of AMCON media consultant, SY and T, Simon Tumba, within 24 hours of intervention by the government, Arik Air “is receiving assistance to be able to offer flight services.”
In a statement made available to THISDAY at the weekend, Tumba said: “Following AMCON’s intervention, it has now being gathered that virtually all of Arik’s trade creditors are being owed, staff salaries have not been paid for between 4- 6 months, and of the 28 aircraft in Arik’s fleet, only 10 are in operation.
External reserves rise by 20% in three months
The nation’s external reserves have risen by $4.7bn or 20 per cent in the past three months, according to the latest data from the Central Bank of Nigeria. Statistics on the CBN website on Sunday revealed that the foreign exchange reserves increased from $24.0bn on November 9, 2016 to $28.7bn on February 9, 2017.
The data also showed that within two months, the reserves increased by $3.8bn or 15.3 per cent from $24.9bn recorded on December 9, 2016 to $28.7bn on February 9, 2017.
Experts prescribe options for implementation of 2017 budget
As the Federal Government plans to finance a deficit of N2.36 trillion for the 2017 budget, financial experts have stressed the need to exercise maximum caution on the borrowing plan, urging government to ensure that that proceeds are not deployed into recurrent expenditure.
Experts, who gathered at 2017 Budget Seminar, organised by the Securities and Exchange Commission (SEC), in Lagos, at the weekend, maintained that for Nigeria to witness a reasonable level of stability, government must resolve the conflict between its fiscal and monetary policies.
120 sacked workers get insurance claims from Anchor
Anchor Insurance Company Limited said it paid claims to a total of 120 people in the country, who experienced sudden loss of job in 2016.
During the presentation of Anchor LoEIS cheques to some of the beneficiaries who had taken cover against sudden loss of employment while they were still gainfully employed, the firm stressed the need for every employee to get cover against market risks.