Category: Economy

Funds

By Thompson Yamput

Lokoja, June 10, 2924 (NAN) Mr Olorundare Thomas, the immediate past Chief Executive Officer, National Insurance Commission (NAICOM), says the Federal Government has not borrowed from the accumulated pension funds.

Speaking on Monday in Lokoja  at a public lecture of the Federal University, Lokoja, (FUL), Thomas expressed concern about insinuations that the Federal Government tampered with  the pension funds.

The News Agency of Nigeria (NAN) reports that the theme of the lecture is: “Insurance Solution In Wealth Creation and Sustainability” as it concerns  economic development of the country.

The ex-NAICOM boss explained the economic challenges in the country did not translate to the Federal Government tampering with the pension funds.

“Some situations change and challenges occur that interrupt or prevent the build-up and re-investment of wealth among citizens of a nation.

“In spite of the best laid plans, life incidences and surprises will continue to happen.

“These surprises, called risks, often require the diversion of resources away from created wealth.

“The optimality of resources is the true definition of an economic growth centered on a real growth without creating other significant economic challenges or without negative effect on other sectors of the economy.

“There is no doubt that wealth in minerals and human resources can  also partially define the wealth of a nation.

“But the misconception that countries with vast natural resources will  translate to automatic economic growth, creation of jobs, increase government revenues.

“This will help to finance poverty alleviation and many other positive reflections of the true dividend of development may be a mirage,” he said.

According to him, statistics have  shown that some countries that are without natural resources grow at about four times more rapidly than other resource-rich countries.

“It is simply because the dynamics for determining the wealth of a nation is changing.

“This is why we are inundated with  the reality of embarking on adventures that will guarantee, not only creation of wealth but also ensuring its sustainability.

“It is important to note that the insurance industry is one of the few sectors that continues to record growth in spite of the economic recession and the impact of the COVID-19 pandemic in 2020.

“From a premium of N282 billion in 2015, the Nigerian insurance industry generated gross premium income of N616.1 billion in 2021, N789.7 billion in 2022 and a record breaking N1.003 trillion as at the end of December 2023.

“Also, the asset of the Nigerian insurance industry grew from N827.5 billion in 2015 to N2.5 trillion in 2022 and N2.7 trillion as at December, 2023.

“It is, therefore, comforting that the insurance industry is now more willing to meet the needs of the insuring populace through insurance solutions and products,” he said.

He said that NAICOM was a statutory agency of the Federal Government established by the National Insurance Commission Act 1997 to regulate and supervise the Nigerian insurance sector and so serve as  adviser to the government on all insurance related matters.

Earlier,  the FUL Vice-Chancellor, Prof. Olayemi Akinwumi, described the ex-NAICOM boss  as a seasoned insurance expert whose choice for the university’s seventh distinguished public lecture was apt and timely, considering the economic condition of the country.

“Thomas is a seasoned professional whose extensive experience and profound insights have significantly contributed to  development of the insurance industry in Nigeria.

“His topic is not only timely but also pivotal to our understanding of how strategic financial planning can drive sustainable economic growth.

“In a world that is increasingly complex and filled with uncertainties, the role of insurance cannot be overstated.

“It serves as a safety net that allows individuals and businesses to take calculated risks, innovate and invest in opportunities that drive wealth creation.

“Moreover, insurance mechanisms are crucial in ensuring  sustainability of these ventures by mitigating potential losses and facilitating recovery in the face of adversity, ” he said.(NAN)(www.nannews.ng)
TYC/CHOM/KAY

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Edited by Chioma Ugboma/Kayode Olaitan

Abuja MoU, MACN, train 22 countries on combating corruption at ports

Training
By Aisha Cole/Rukayat Adeyemi

Lagos, June 10, 2024 (NAN) Capt. Sunday Umoren, Secretary General of the Memorandum of Understanding on Port State Control for the West and Central African Region (Abuja MoU), has urged port officers to strengthen their capacity and combat corruption in the maritime sector.

Umoren made this call during a training on Ethics and Integrity Leadership for port state control officers from 22 countries in West and Central Africa.

The News Agency of Nigeria (NAN) reports that the training was organised by the Abuja MoU in collaboration with the Maritime Anti-Corruption Network (MACN) on Monday in Lagos.

According to him, addressing corruption starts with understanding the Abuja MoU’s key mandate to eliminate substandard ships.

He noted that substandard ships pose threats to human life, the marine environment, and the livelihoods of maritime stakeholders.

Umoren pointed out that unethical and corrupt practices exacerbate risks to maritime facilities and cargo, undermining the International Maritime Organisation’s (IMO) initiative for “safer seas and cleaner oceans.”

He categorised corrupt practices into three types which include accepting bribes, offering bribes, and failing to report known corruption.

He highlighted the IMO’s Code of Ethics, which sets the standards for ethical conduct among its staff, suggesting that similar standards should be applied by Port State Control Officers (PSCOs).

“The phrase “no more favourable treatment” which has been severally debated in some of the meetings of the IMO, may also hold good in the context of ethics and integrity.

“This is because gratuitous offers are usually aimed at favourable and skewed treatment,”he added.

He noted the need for PSCOs to maintain an attitude of innocence and purity in line with the Code of Good Conduct for PSCOs.

Recognising the crucial role of PSCOs, the Abuja MoU collaborated with MACN for this training, marking the first such collaboration with a regional MoU or flag state.

Mr. Vivek Menon, Associate Director for Global Operations and Industry Engagement at MACN, underscored the importance of implementing training to improve transparency and efficiency in port operations. He noted that corruption not only affects societies but also impacts trade volumes entering West and Central Africa.

The Consul General of Denmark, Mrs Jette Bjerrum, highlighted Denmark’s collaboration with the Abuja MoU to modernise the maritime sector through improvements in ethics and leadership.

She stressed that transparency and good ethics are essential for sector improvement.

Chairman of Abuja MoU, Mr Ebrimo Sillah, Gambia’s Minister of Transport, Works, and Infrastructure, called for collaboration and transparency to enhance the technical standards of shipping operations.

He emphasised the importance of understanding port operation mechanisms and maintaining maximum integrity.

Mr Adegboyega Oyetola, Vice Chairman of Abuja MoU and Nigeria’s Minister of Marine and Blue Economy, urged port operators to adopt good ethical practices to improve trade facilitation.

He affirmed the Federal Government’s commitment to fostering integrity in port operations.

Dr Dayo Mobereola, Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), represented by Mr Fatai Adeyemi, Executive Director of Operations at NIMASA, stated that PSCOs are the first line of defence in ports.

He emphasised that ethical conduct is crucial for fair and just decision-making in port state control activities.

Capt. Tajudeen Alao, President of the Master Mariners Association of Nigeria, urged shipping operators to enhance ethics and personnel training.

He stressed the importance of leveraging technology to stay relevant in the sector.

Dr Odunayo Ani, President of the Women in Shipping Trading Association (WISTA) and Head of Audit at NIMASA, highlighted the need to prioritise ethics and integrity in leadership.

She called for the integration of an ethical workforce in the maritime sector.

Mrs Rollens Macfoy, President of Women in Maritime Africa (WIMAfrica), Nigeria, commended the Abuja MoU for ensuring the implementation of ethical practices in ports.

She also appealed for more women to be included in training programmes to enhance professionalism and opportunities.

Mrs Vivian Chimezie-Azubuike, Director General of the Nigerian Chamber of Shipping (NSC),  advocated for the adoption of best practices in leadership at all levels to facilitate smoother shipping operations and trade. (NAN) (www.nannews.ng)

RUKY/AIC

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Edited by Olawunmi Ashafa

FAAC

By Kadiri Abdulrahman

Abuja, June 10, 2024 (NAN) The Federation Accounts Allocation Committee (FAAC), on Monday shared  N1.143 trillion among the Federal Government, states and Local Government Councils (LGCs) for May.

The revenue was shared at the June meeting of the FAAC, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

According to a communiqué issued by the committee at the end of the meeting, the N1.143 trillion total revenue comprised statutory revenue of N157.183 billion, Value Added Tax (VAT) revenue of N463.425 billion.

It also comprised Electronic Money Transfer Levy (EMTL) revenue of N15.146 billion and Exchange Difference revenue of N507.456 billion.

It said that revenue of N2.324 trillion was available in the month of May.

” Total deduction for cost of collection is N76.647 billion, while total transfers, interventions, and refunds is N1.104 trillion.

“Gross statutory revenue of N1.223 trillion was received for the month of May 2024. This was lower than the sum of N1,233 trillion received in the month of April by N9.604 billion,” it said .

The communiqué said that
gross revenue of N497.665 billion was available from VAT in May, which was lower than the N500.920 billion available in April by N3.255 billion.

It confirmed that from the N1.143 trillion total revenue, the Federal Government received N365.813 billion, the state governments received N388.419 billion, and the LGCs received N282.476 billion.

It said that the sum of N106.502 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

On the N157.183 billion statutory revenue, the communiqué said that the Federal Government received N61.010 billion, the state governments received N30.945 billion, and the LGCs received N23.857 billion.

“The sum of N41.371 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

“The Federal Government received N69.514 billion, the state governments received N231.713 billion, and the LGCs received N162.199 billion from the N463.425 billion VAT revenue.

“A total sum of N2.272 billion was received by the Federal Government from the N15.146 billion EMTL, the state governments received N7.573 billion, and the LGCs received N5.301 billion,” it said.

According to the communiqué, the
balance in the Excess Crude Account (ECA) is 473,754.57 dollars, (NAN)(www.nannews.ng)

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Edited by Ese E. Eniola Williams

Funding

By Rukayat Moisemhe

Lagos, June 10, 2024 (NAN) The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) in collaboration with Sterling Bank Ltd., on Monday, unveiled five billion naira initiative-Databanc loan to address financial gaps for small businesses.
The News Agency of Nigeria (NAN) reports that the initiative was launched in Lagos with the theme: “Building with Data: Promoting Economic Growth through Data Driven Insights.”
NAN reports that Databanc is a five billion single digit loan to engender easier access to funds by Nano, Micro, Small and Medium Enterprises ( NMSMEs).
Mr Bunmi Kole-Dawodu, the Lagos State Manager, SMEDAN, said the funding tool would be geared towards providing local and tailored made support for business at the smallest levels.
Kole-Dawodu added that the funding tool would provide access to markets and all factors to drive entrepreneurship.
He said the initiative would aid Nigeria’s export potential and provide accurate data information about nano enterprises to drive their growth and sustainability.
Kole-Dawodu noted that Micro, Small and Medium Enterprises (SMEs) had hitherto complained about not having easy access to financial interventions.
“Now this platform would provide accurate data on nano, micro and small businesses in Nigeria while facilitating the requisite business support for these businesses.
“It is important to have the support of business membership organisations to help encourage members to go on the platform and register to foster data driven insights,” he said.
Kole-Dawodu restated SMEDAN’s commitment to the development of small businesses across the country and urged SMEs to trust in the agency for all round support.
He pledged to collaborate with partners, stakeholders and business organisations to further advance the cause of small businesses in the country.
The Director General, SMEDAN, Mr Charles Odii, said that data was critical to the agency to help it make more informed economic decisions to build small businesses ecosystem.
Odii said the agency as the vanguard for livelihood enhancement would continue to bridge the gap between the government and small businesses.
“One thing we have observed is that businesses are not responding or taking advantage of the various interventions out there for them.
“Databanc as a platform would help build products’ knowledge about small businesses and it is very important for entrepreneurs to be aware of this to help grow their businesses,” he said.
Mrs Bolanle Tyson, Head, SME Products, Sterling Bank Ltd., said Databanc was a five billion single digit loan to engender easier access to funds by nano and micro businesses.
Tyson said the Databanc, a formalised portal to access funding without human interface for businesses with tax identification number, registered with the Corporate Affairs Commission, provided funding from N250,000 to N2,500,000 for one year.
She said that with the “SMEDAN Databanc Platform,” NMSMEs would be appropriately captured with unique identifiers for business data integrity.
“The platform has a unique promoter ID, unique business ID generated for each business owner with seamless onboarding experience to provide exclusive business development and support initiatives generated through SMEDAN.
“It makes it easier to track businesses and provide creative solutions to foster business growth and sustainability by unlocking businesses’ potential with the SMEDAN N5bn loan program for success,” she said.(NAN)(www.nannews.ng)
ARM/JNC
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Edited by Chinyere Joel-Nwokeoma

Afreximbank supports Fidelity Bank’s acquisition of Union Bank UK with $40m

Facility

By Okeoghene Akubuike

Abuja, June 10, 2024 (NAN) Afreximbank said it has disbursed 40 million dollars Intra-African Investment Facility to Fidelity Bank Nigeria Plc to support Fidelity Bank’s acquisition and recapitalisation of Union Bank United Kingdom.

A statement issued by Mr Vincent Musumba, Manager, Communications and Events, Afeximbank, on Monday said the acquisition was part of Fidelity Bank’s international expansion.

Musumba said the facility was provided in two tranches of 20 million dollars each.

He said the first tranche of the facility enabled Fidelity to part-refinance the acquisition of a 100 per cent equity stake in Union Bank UK.

Musumba said the second tranche was used to support its recapitalisation via the injection of additional equity into the acquired bank, as approved by the United Kingdom’s regulator.

“With this acquisition, Fidelity Bank can birth a new pan-African financial institution capable of providing correspondent banking and offshore banking services to banks in Africa and servicing the banking needs of Africans in the diaspora.

“The acquisition is expected to contribute to Africa’s economic growth and development by increasing intra- and extra-African trade finance and trade flows between Nigeria and the UK.

“It will also support the integration of the African Diaspora into regional and continental supply chains and enable small and medium-sized enterprises across the continent to improve their export competitiveness and light export manufacturing capabilities.”

Musumba quoted Kanayo Awani, Executive Vice-President, Intra-African Trade Bank and Export Development Bank, Afreximbank, as saying the disbursement of the facility was part of Afreximbank’s effort to promote African control and ownership of capital while improving intra-African trade and investments.

“Fidelity Bank’s acquisition of Union Bank UK aligned with Afreximbank’s Intra-African Investment Facility. It was a significant milestone for the institutions, reinforcing African ownership and control within the global financial landscape.

“By supporting this strategic transaction, we are not only bolstering Nigeria’s banking sector but also fostering greater financial integration between Africa and its Diaspora.”

Awani said the initiative was a testament to Afreximbank’s commitment to enhancing intra-African trade, promoting economic stability and driving forward the objectives of Agenda 2063 for a prosperous and self-reliant Africa.

She said Afreximbank’s bank acquisition strategy, empowered African entities to acquire financial assets, divested by foreign entities in Africa and the diaspora.

“This is also in line with the bank’s Diaspora Strategy which seeks to promote and finance the integration of the African Diaspora with the rest of the continent.”

Awani said through the facility, Fidelity was extending its services to the UK, in particular, to Africans and African-owned businesses in the UK, including products to support diaspora investments.

Musumba quoted Dr Nneka Onyeali-Ikpe, Managing Director/CEO, as saying, we are very thankful to Afreximbank for supporting our expansionary initiatives for international growth.

“It is, indeed, the result of a strong partnership between the two institutions over the years that has produced this good outcome.

“The refinancing of the Union Bank (UK) acquisition by Afreximbank will unlock additional value and help create a scalable and more sustaining service franchise that will support trade businesses in Africa and diaspora banking.”(NAN)(www.nannews.ng)

OKE/AMM

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Edited by Abiemwense Moru

Investment
By Lucy Ogalue
Abuja, June 10, 2024 (NAN) Stakeholders say collaboration is important in boosting investments and ensuring Nigeria’s growth.

They spoke at a Stakeholders ‘Engagement with Investment Promotion Agencies (SIPAs), organised by the Nigerian Investment Promotion Commission (NIPC) in Abuja.

The Executive Secretary of NIPC, Aisha Rimi, emphasised the Importance of strengthening relationship between the commission and the state investment agencies.

“So the objectives today are to strengthen this relationship between NIPC and the State Investment Promotion Agencies (IPAs).

“To ensure a seamless coordination and alignment of efforts to attract investments across the country.

“We want to strengthen and build the technical and institutional capacity of the IPAs to enable them to achieve set goals and objectives.

“We want to be able to disseminate information about investment opportunities across the states, leveraging local knowledge to attract investors,’’ she said.

Rimi expressed the commission’s desire to address challenges and bottlenecks that hinder investment activities and find practical solutions to enhance the investment climate.

She said the meeting also aimed to foster strong relationships with stakeholders, including Ministries, Departments, and Agencies (MDAs), some of which were represented at the event.

To achieve these goals, Rimi said the commission designed the Nigerian Investment Certification Programme for States (NICPS) to ensure an efficient system in the states.

The executive secretary reiterated the importance of working to ensure we retained the investors already in Nigeria, especially considering the harsh business environment in the country.

Rimi urged the participants to use the opportunity to interact, network, listen to the various speakers, and find ways to drive investment in the country.

Also speaking, the Director, Infrastructure and Public Private Partnership (PPP), Bureau of Public Procurement (BPE), Dr Micheal Magaji, reiterated the importance of collaboration to boost investment.

According to Magaji, reform is also critical to ensuring investment promotion in the country.

He said: “our engagement today underscores our commitment to fostering strong partnerships between the federal and state levels and between the public and private sectors.

“We are here to listen, learn, and share our expertise, with the ultimate goal of driving sustainable development and economic growth across Nigeria.

“Additionally, we use this opportunity to urge all states present at this engagement to take full advantage of this collaboration.”

According to the director, the benefits outlined above represent a glimpse of what can be achieved through our joint efforts.

“We encourage you to engage with the Bureau. Leverage our expertise and unlock the full potential of your state’s assets.

“Our doors are always open, and we are committed to supporting you in every step of this journey.

“I look forward to our discussions and the innovative solutions emerging from this engagement.

“Together, we can continue to transform our states and, by extension, our nation into hubs of prosperity and progress,’’ he said.

Similarly, the Director, Investment Promotion, Ministry of Industry, Trade and Investment, Gertrude Orji, said the ministry was committed to keeping up with the NIPC’s mandate.

Orji, represented by an Assistant Director in the ministry, Amina Mohammed, said the event was critical to investment and pivotal to the country’s development.

Also, a representative of GIZ-SEDIN Programme, Abuja, Mr Akinropo Omaware, commended NIPC’s efforts in attracting and retaining investment in the country.

Omaware said collaboration was key to strengthening the country’s investment climate.

He expressed the commitment of the organisation to support and drive investments in the country.

The News Agency of Nigeria (NAN) reports that key stakeholders, government officials, and experts in the subsector attended the event.
(NAN) (www.nannews.ng)
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Edited by Ese E. Eniola Williams

Commission engages youths on consumer protection initiatives