National Insurance Commision (NAICOM) has directed insurance and re-insurance companies to comply with approved minimum paid-up capital not later than Sept. 30, 2021 as against recapitalisation deadline of Dec. 31, 2020.
Mr Pius Agboola, NAICOM Director, Policy and Regulation, on behalf of the Commissioner for Insurance in a circular dated June 3, said that the incidences of the COVID-19 pandemic made it difficult to proceed with the Dec. 31, 2020 deadline.
Agboola explained that in order to mitigate likely negative consequences of the pandemic, the commission extended and segmented the recapitalisation process into two phases
He stated that insurance companies were expected to pay 50 per cent of the minimum paid-up capital while re-insurance companies were expected to pay 60 per cent by Dec. 31, 2020.
“The segmentation is indicated as : Life Insurance business with existing minimum paid-up capital of N2 billion is expected to pay a minimum paid – up capital of N4 billion by Dec. 31, 2020 and N8 billion by Sept. 30, 2021.
According to him, insurance companies that fail to satisfy the required minimum paid-up capital by the end of Dec. 31,2020 may be restricted on the scope of business they will transact.
Agboola noted that all insurance companies must fully comply with the required minimum paid-up capital at the end of the recapitalisation on Sept. 30,2021.
The industry recapitalisation required that Life companies increased their paid-up share capital from N2 billion to N8 billion; General Business from N3 billion to N10 billion; Composite Business from N5 billion to N18 billion; and Reinsurance companies from N10 billion to N20 billion.
Recapitalisation: AIICO not resting in its drive — MD
Fajemirokun said that the firm’s current capital base was N11.6 billion and it hoped to increase this to N15.02 billion after the rights issue and bonus issue by the end of the year.
This, he said, would bring them closer to the NAICOM new capital requirement of N18 billion by 2021.
“Rationale for the rights issue is, NAICOM, last year, increased the regulatory capital requirements for insurance industry to N18 billion, from N9 billion.
“AIICO has not rested, we have been focused on three strategies, first is private placement, successfully executed in January which raised N5.3 billion and increased our capital base from N6.3 billion to N11.6 billion.
“Of course, we had a shortfall from this, which will be raised through the rights issue and bonus issue. We applied the private placement to the loan or convertible loan repayment to the IFC, which we are currently executing.
“Also, we have investment in technology, human capital, plant and equipment and we also launched the facts behind the offer and rights issue to raise N3.48 billion, which started on Sept. 2.
“It will increase our capital base from N11.6 billion to N15.1billion, which will be deployed to two ways, technology and PPE.
“The board recommended the bonus issue which will involve capitalising some of our retain earnings with the proposed term of one share for every five shares to shareholders as at third December 2020,” Fajemirokun said.
According to him, the new capital requirement of N18 billion is due in 2021, and after the bonus issue, AIICO will be at N16.02 billion.
“The key impact will ensure that we are able to underwrite big transactions, especially in aviation and oil and gas, earn market confidence and bring us closer to meet the new requirement.
“So, at the end of this rights issue, AIICO would have met the current capital requirement which is 50 per cent (N9 billion)
“Why stakeholders should invest in the rights issue is because AIICO’s current capitalisation as at Sept. 7 was about N10.2 billion, because we have got a diversified business with a life and non-life business with complimentary business in health, pensions, asset management and others.
“We have 9 to 10 per cent market share based on gross premiums as at 2018. We have shown solid growth in our compounded annual growth rate for our total asset, total equity, PAT as well as dividend per share,” he said.
Mr Oscar Onyema, Chief Executive Officer, NSE said that the rights issue presented shareholders an opportunity to support AIICO insurance with a balance sheet, increased efficiency and repositioning to increase market share.
He said that the ultimate aim of the rights issue was to improve shareholders’ returns.
Onyema, who was represented by Mr Olumide Bolumole, said that NSE would continue to position itself as the African exchange of choice.
He said it would continue to assist listed companies to achieve their business objectives.
Mr Dipo Williams, representing the Chartered Institute of Stockbrokers, said that AIICO had been one of the stock market’s good companies that had been listed since 1990.
Williams said that AIICO insurance had seen the benefits of the market and this was why it was back for more rights issue.
He assured the firm that the stockbroking community would always support them.
At the end of the webinar, Mr Oladeji Oluwatola, Chief Operating Officer of AIICO rang the closing gong to close the market.
Edited By: Oluwole Sogunle
Facebook announces opening of new office in Lagos
Facebook on Friday said it would be opening an office in Lagos, Nigeria, as part of its continued commitment and ongoing investment in Africa.
Facebook, in a statement made available to newsmen in Lagos, said this would be its second office on the African continent.
It said the opening of the new office was aimed at supporting the entire Sub-Saharan Africa region.
The office, it said, was expected to become operational in 2021.
According to Facebook, it will be the first on the continent to house a team of expert engineers building for the future of Africa and beyond.
It said the office would be home to various teams servicing the continent from across the business, including Sales, Partnerships, Policy, Communications as well as Engineers.
Commenting, Ime Archibong, Facebook’s Head of New Product Experimentation, said: “The opening of our new office in Lagos, Nigeria presents new and exciting opportunities in digital innovations to be developed from the continent and taken to the rest of the world.
“All across Africa, we are seeing immense talent in the tech ecosystem and I am proud that with the upcoming opening of our new office, we will build products for the future of Africa, and the rest of the world, with Africans at the helm.
“We look forward to contributing further to the African tech ecosystem.
“The investment of the new Facebook office follows the 2018 opening of NG_Hub, its first flagship community hub space in Africa.
“The hub was opened in partnership with CcHub, and the 2019 opening of a Small Business Group (SBG) Operations Centre in Lagos, in partnership with Teleperformance, “Archibong said.
Kojo Boakye, Facebook’s Director of Public Policy, Africa said that the new office in Nigeria presents an important milestone which further reinforces the company’s ongoing commitment to the region.
“Our mission in Africa is no different from other parts of the world, which is to build community and bring the world closer together.
“I am excited about the possibilities that this will create, not just in Nigeria, but across Africa,” Boakye said.
The policy director said since the opening of its first office in 2015, Facebook had made a number of investments across the continent, aimed at supporting and growing the tech ecosystem.
Boakye noted that the support includes the recent rollout of its SMB Grants programme in Nigeria and South Africa.
He said thia was aimed at supporting over 900 businesses by providing a combination of cash and ad credits to help small businesses as they rebuild from COVID.
Nunu Ntshingila, Regional Director, Facebook Africa, said: “We are delighted to be announcing our new office in Nigeria.
” Five years on from opening our first office on the continent in Johannesburg, South Africa, we will continue to invest in and support local talent, as well as the various communities that use our platforms.
“The office in Lagos will also be key in helping to expand how we service our clients across the continent,” Ntshingila said.
Edited By: Oluwole Sogunle
Ministry to intensify awareness on importance of ozone layer protection
The Minister of the Environment, Dr Mohammad Abubakar, on Friday said the ministry would intensify its awareness on the importance of the protection of the ozone layer through the effective collaboration of relevant stakeholders.
Abubakar made this known at a ministerial briefing on the commemoration of 2020 International Day for Preservation of Ozone Layer with the theme, “Ozone for Life,’’ in Abuja.
He said that the ministry was also committed to the training and monitoring of technicians in the affected sectors on ozone-friendly technologies.
The Minister said the theme has two connotations that needed a healthy ozone layer to protect lives and the environment, as well as safeguarding future generations to come.
Abubakar said that the ministry, in collaboration with the United Nation Development Programme, (UNDP), the United Nation Industrial Development Organisation, (UNIDO), the World Bank and the UN Environment Programme, were the agencies implementing Ozone Depleting Substances (ODS).
“In line with the protocol`s ODS phase out schedule, we have assisted over 600 large, Small and Medium-Scale Enterprises in the foam, refrigeration and air conditioning, aerosols, fire protection and solvent sectors.
“The assistance is to convert to ozone-friendly substances and technologies.
“This resulted in 100 per cent phase out of over 4,000 metric tonnes of ODS, with high ozone depletion potentials.
“About 26 institutions, (polytechnics and government technical colleges) were identified and equipped to serve as training centres on good refrigeration practices.
“We have also trained the trainers from the identified centres and developed training manuals on good refrigeration practices.
“These have led to the training of more than 10,000 refrigeration technicians in the refrigeration servicing sector.
He said that the ODS phase out activities were achieved with support from the multilateral fund for the implementation of the Montreal protocol.
Abubakar noted that the ministry was implementing the protocol`s Hydrochlorofluorocarbon (HCFCs) project.
He said that the project was targeted at phasing out HCFCs gases R-22 and 141b, mainly used in Nigeria as refrigerants and blowing agents in the refrigeration, air conditioning and foam sectors respectively.
The minister said that the ministry was committed in the implementation of multilateral environmental agreements that the country was a party to.
According to him, the upgrade of a system house at Vitapur Nigeria Ltd (a subsidiary of vitafoam Nig. Ltd), for the formulation of ozone friendly systems in the manufacture of rigid polyurethane foam was completed in 2019.
“I am glad to inform Nigerians that I will be commissioning this particular project on Sept. 22.
“The plant which is one of the two such in Africa, the other being in South Africa, will supply ozone friendly substances to downstream end-users in the rigid polyurethane foam sector.
He said that the benefit of the project was to provide ozone friendly and low global warning potential blowing agent in the production of rigid foam.
The Minister said the ministry would be engaging in capacity building activities on maintenance and servicing of space cooling to avoid spread of COVID 19 while minimising impacts of energy efficiency and climate.
He said the ministry was currently preparing to commence the implementation of stage 2 of the Hydrochlorofurocarbons Phase Management Plan (HPMP).
The Minister added that the government of Italy has offered support as a bilateral partner.
Abubakar said that the stage 2 was built upon the achievement of the previous stage, aimed at achieving the complete phase out of HCFC-141b in foam related applications.
He explained that Vienna Convention for the Protection of the Ozone Layer was adopted in 1985 and entered into force in 1988.
The Minister added that the binding instrument to ensure compliance with the provisions of the convention was also adopted on Sept. 16, 1987, which became the Montreal Protocol on substances that deplete the ozone layer.
“Since then, Sept. 16 has been set aside to commemorate the international day for the preservation of the ozone layer by the global community, in line with the UN General Assembly Resolution,’’.
The minister, however, appreciated the efforts of UNDP, UNIDO, World Bank, UN Environment, the government of Italy and other relevant agencies for their support and cooperation in the implementation of projects.
Earlier, Mr Jean Bakole, Country Representative and Regional Director of UNIDO, said that the office would continue to support the government in promoting inclusive and sustainable industrialisation development.
Bakole, who was represented by Mr Oluyomi Banjo, an environment expert in the UNIDO, thanked the minister on the achievement of all the projects across the country.
Edited By: Idonije Obakhedo
CSOs canvass better deal for African wildlife in COVID-19 policies
The News Agency of Nigeria reports that the AWF is an umbrella body for alliance of over 80 African Civil Society Organisations (CSOs) working in conservation as the African CSOs Biodiversity Alliance (ACBA).
Chief Executive Officer of Obudu Conservation Centre (OCC) Nela Duke-Ekpenyong, member, policy working group of the coalition made this known in a statement on Thursday in Lagos.
She said that the group would continue to ensure better life for wildlife even as the world grappled with effects of the COVID-19 pandemic.
She said an online meeting of the group on ‘How COVID-19 Affected Policies on Wildlife”, was part of the group’s strategy as an alliance, aimed at engaging with the development of post-2020 Global Biodiversity Framework in a manner that reflected the values, rights, priorities and needs of the African people.
She said that in April 2020, her wildlife NGO dedicated to protecting, restoring and increasing awareness of the wild lands and wildlife on the Obudu Plateau and surroundings in Cross River National Park, also joined the communications and policy working group of ACBA.
Duke-Ekpenyong, who supported the coalition by managing the external communications of the alliance and assisting with the country-level engagement in Nigeria, said OCC also liaised with media platforms to promote ACBA’s campaign.
She disclosed that she produced a case study on ‘Wildlife Community Forest Reserves, Pastoralism, and Water Rehabilitation’ to influence the Convention on Biodiversity’s Framework on Sustainable Use.
According to her, we are currently running an African- wide campaign to draw attention to zoonotic diseases, tourism and conservation.
“We are presently out to increase awareness and my involvement is for the Obudu conservation centre, which is part of the ACBA.
“As the group continues with its six-week campaign, the organisation acknowledges that engaging the public on the linkage between nature and health systems is vital now more than ever.
“To effectively communicate this scientific phenomenon, multi-lingual info-graphics are complementing efforts to ensure a better grasp of how zoonotic diseases are transmitted and how everyone can play a role to ensure that we avert another pandemic.
“In a bid to raise awareness on zoonosis, ACBA has organised a campaign comprising of webinar series and info-graphics. The final webinar for the #OurNatureOurHealth campaign is almost here,” she said.
She said the group also worked alongside a team of leading conservationists and organisations in discussions with the China CSOs and Latin American COICA group to bring together, the voice of the global south to influence the post-2020 CBD Framework.
“It includes how Africa’s biodiversity thrives and underpins equitable, socially economically resilient livelihoods based on the rights of people to sustainably use their natural resources,” she said.
She, however said that ACBA had engaged the African Union Commission and United Nation’s General Assembly’s Biodiversity Summit.
“Over the past five weeks, we have been running the zoonosis campaign that ends in two weeks, educating Africans about zoonosis, their effects on the economy, human health and animal health.
“While on social media we have focused on the zoonosis campaign, behind the scenes, we are crafting policy submissions to the convention on Biological Diversity, in order to influence the post-2020 global biodiversity framework as our main goal is to strengthen the African civil society voice in the CBD,” she added.
Edited By: Chioma Ugboma/Ismail Abdulaziz