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The Association of Bankers and Mobile Money in Nigeria has expressed optimism that the Central Bank of Nigeria will reverse its policy of cash withdrawal limits before the new year.
AMMBAN National Chairman Victor Olojo revealed to The PUNCH on Sunday that the National Assembly has pledged to convince CBN Governor Godwin Emefiele to review the policy.
The new CBN policy set weekly cash withdrawals for individuals at N100,000 and corporate entities at N500,000 per week.
The directive further said that withdrawals above the thresholds would attract processing fees of five percent and 10 percent respectively, for individuals and legal entities starting January 9.
In addition, third party checks above N50,000 will not be eligible for over the counter payment while existing limits of N10 million on compensation checks are maintained.
In a petition dated December 16, 2022, PoS operators asked the CBN to review its policy and prevent 1.4 million bank agents from losing their livelihoods.
But giving an update on the matter, Olojo explained that assurances given by the CBN and the National Assembly that POS operators would not be affected by the policy have caused the group to soften its planned legal action.
However, it warned that if the policy is not reversed by the end of the year, its members would take to the streets to demand its reversal and also take the main bank to court.
The president of the union of outlet operators said: “We have not gone to court yet because we have obtained guarantees and we are waiting for a formal response from CBN. We have visited the National Assembly and have also explored other tools at our disposal at this time.
“They have given reassurance that mobile money and POS operators will not be affected. So, we are waiting for an official statement from the CBN. However, if nothing changes by the end of the year, we will take to the streets to protest and go to court.
''Remember that the Director of Banking Supervision, Mustafa Haruna, was quoted on a TV channel as having stated categorically that mobile money and banking agents would not be affected, so we just want to take that as an assurance while we wait for a formal report. . We have written to CBN, but have not yet received a response."
Olojo also based his hopes on assurances from the CBN governor that the policy would be flexible.
“The CBN governor also said that they will be flexible, so we are waiting for a revised policy that shows the flexibility. The national assembly also said that they will prevail over the governor as they oppose the new policy of CBN,'' he noted.
Also commenting on the policy, the president of the Nigerian Association of Small and Medium Businesses, Lagos State Chapter, Dr. Adams Adebayo, confirmed to our correspondent that the association met with the Senate Committee on Banking, Insurance and Other Financial Institutions on the subject last week.
“The Senate committee has assured the MSME Council that the CBN Governor will review it, especially for PoS and small business owners,” Adebayo explained.
CBN spokesman Osita Nwanisobi could not be reached on Sunday for comment when the main bank would announce the policy review, as calls to his phone indicated he was unavailable.
Commenting on the policy, the president of the National Union of Banks, Insurance and Financial Institutions, Abakpa Anthony, said it was too harsh, adding that the CBN should have run a pilot system and seen the level of compliance before introducing it.
He also argued that as much as the cashless policy would help Nigerians, the nation has not developed to the point of implementing a full-blown cash limits policy.
The head of NUBIFI said: "People in rural areas do not have phones that support online transactions and in most cases there will be no network to carry out the transactions."
He further stated that ATM and POS withdrawal limits may drive many Nigerians into poverty and put POS operators out of work.
”Some farmers who buy and sell in large quantities in rural areas where there is no network; what will happen to them? When Nigeria is ripe for such a policy, Nigerian workers will know it."
Meanwhile, the Gombe State Governor's Special Adviser on Information Strategy and Management, Ahmed Gombe, said the state government was also opposed to the CBN policy on the grounds that the amount stipulated by CBN was inadequate.
Gombe was reacting to a report that the NGF was opposed to the cash-out policy and that the governors of the 36 states were planning to meet with the Presidency on the issue.
Speaking in a chat with one of our correspondents, the media aide stated: “The Gombe State Governor supports any federal government policy as long as it is in the interest of the Nigerian people, especially in Gombe State. At the same time, he also supports any collective decision made by his colleagues in the best interest of the Forum of Governors”.
Credit: https://punchng.com/cash-limits-pos-operators-give-cbn-ultimatum/
The Indonesian Embassy in Khartoum, in collaboration with the Sudanese Sharia Economic Community (MES), has facilitated business contacts and the participation of 2 Sudanese business people in organizing the Craft Arts Tourism, Trade and Investment Exhibition and Business Match organized by the DI Yogyakarta Regional Government on 17 s.d. November 20, 2022.
On this occasion, Sudanese businesses took part in a series of activities, including visiting exhibition stands, business matching, aira fashion on the spot, craft fun ground, Jogja craft tour and visits to several historical tourist destinations in Yogyakarta.
Sudanese businessmen greatly admire the craftsmanship of the Indonesian MSME actors on display, including clothing designed by 80 famous Indonesian designers and various handicrafts.
The presence of Sudanese businessmen at the exhibition was enthusiastically welcomed by the DI Yogyakarta Regional Government and also the exhibitors.
Apart from Sudanese businessmen, a number of other foreign businessmen, including Yemen and Oman were also present at the exhibition.
Through the participation of Sudanese businessmen, it is hoped that they will be able to encourage increased cooperation between Indonesia and Sudan, especially in the creative economy industry sector and be able to provide benefits, especially for artisans and SMEs of the two countries.
Held in Lagos, Nigeria, the first UNWTO Global Conference on Linking Tourism, Culture and Creative Industries, celebrated the close ties between the two major sectors.
Around 40% of all tourists cite culture as the main motivation for travelling, and UNWTO is leading the way in bridging the two areas, including through strategic partnerships with Affiliate Members such as Netflix.
Opening the event, UNWTO Secretary-General Zurab Pololikashvili told delegates: “The fortunes of tourism and culture are closely linked.
When one thrives, the other does too.” He urged the public and private sectors to work together to create decent jobs, grow investments and embrace innovation and digital transformation.
The fortunes of tourism and culture are closely linked.
When one thrives, the other does too.
Tourism and culture ‘in the spotlight’
Representing the Government of Nigeria, Vice President Professor Yemi Osinbajo addressed the Conference, stating: “Our desire to diversify our economy and explore other sustainable sources of revenue has led us to rank the tourism, culture and the creative sector among the priority sectors of the economy.
Specifically, tourism has been recognized for its resilience and dynamism.” The Vide President also highlighted the ability of music to serve as a “global language”, bringing people together and allowing them to learn more about the “culture and ideas” of others.
Nigeria’s Minister of Tourism, Lai Mohammed, added: “Today, more than ever, tourism and the creative industry, due to their economic viability, are in the global spotlight and have their place at the forefront of national and international development agenda.”
As well as meeting with the Vice President and the Minister of Tourism, UNWTO Secretary-General Pololikashvili met with the Governor of Lagos, Babajide Olusola Sanwo-Olu, to explore new ways of harnessing the power of culture and tourism to create jobs and business opportunities and to drive inclusive development, both in Nigeria and across Africa.
On the sidelines of the Conference, the Secretary-General also met with Aliko Dangote, a Nigerian businessman and philanthropist who has served as a UNWTO Ambassador since 2018.
Investments, youth empowerment and gastronomy
The two-day Conference focused on several of UNWTO’s key strategic objectives, most notably youth empowerment and boosting investments in tourism.
On the first day, UNWTO hosted a special interactive session with youth from across Nigeria, fulfilling the commitments made in the Sorrento Call to Action to make young people active participants in decision-making in the sector.
Also in Lagos, a panel discussion on Stimulating the Creative Industries for Social Entrepreneurship focused on the importance of supporting MSMEs and innovators in order to enhance competitiveness across the tourism sector.
Against the backdrop of the Global Conference on Linking Tourism, Culture and Creative Industries, UNWTO celebrated the richness of African gastronomy, a growing force within the continent’s tourism sector.
A “Flavors of the World” exhibition showcased the very best culinary talent, and local gastronomy star Chef Coco Reinarhz joined a workshop and panel discussion focused on realizing the potential of gastronomy tourism to grow destinations and drive inclusive and sustainable development.
Micro, small and medium-sized enterprises (MSMEs) are considered critical for driving economic development that will reduce unemployment and poverty across Africa.
These enterprises, of which there are around 40 million in the region, account for 60 per cent of Africa’s workforce and form an enormous part of many nations’ economies, generating over 50% of all wealth.
However, these businesses, vital to uplifting living standards, are severely underfinanced.
In Africa, the financing gap is thought to be around $330 billion annually.
The key to bridging this is the microfinance sector, providing financial services to those who do not have access to traditional banking and credit services.
4G Capital offers a way to move faster and go deeper
In Kenya and Uganda, 4G Capital is dedicated to bridging the finance gap to advance MSMEs and help informal traders transition to the formal economy on fair and equitable terms.
The company, operating since 2013, provides unsecured working capital microloans alongside critical enterprise and financial literacy training via digital channels and in person through nationwide branches.
4G Capital, rather than blind-lending digitally, lends to individuals after a due diligence and onboarding process that identifies their needs and focuses on training them to sustainably and profitably grow their businesses.
This ultimately means they can repay their loans and dramatically increases the chance of building viable businesses that can truly make a wider socioeconomic difference.
Research shows 4G Capital’s customers grow their revenues by an average of 82% annually.
So far, 4G Capital has issued more than 2.27 million loans to over 307,000 clients, 53% of which are rural MSMEs and almost three-quarters run by women.
In-house technology and data science have been critical to this end.
Credit reference bureaus (CRBs) across Africa face difficulty in including the informal sector, not least because they struggle to obtain complete financial profiles of individuals and their businesses.
4G Capital does not rely upon CRBs to assess whether a client can be served, with all risk assessment and due diligence activities being taken in-house.
Similarly, 4G Capital does not report defaulters to the CRB, instead working with them to return to financial health.
The company addresses a problem that is bigger than you might think.
Figures from 2018 show that just 11% of Africa’s population had their credit information recorded by private credit bureaus, a worryingly low figure when compared to comparable regions such as emerging Asia (17%) and Latin America (79%).
And it is worrying because traditional banks rely on these consumer credit models to evaluate risk, meaning large cohorts of the African population are excluded from the world of credit.
4G Capital bypasses this outdated model.
And where others attempt due diligence by mining information from phone bills and mobile money records, 4G Capital, by contrast, physically visits and interviews each customer and processes findings through its “EVA” (evaluation algorithm) AI platform.
Customers are then given in-person and online financial literacy training alongside their loans.
Rewarding client loyalty
Given the small size of capital injections offered, clients typically take out several micro-loans consecutively as they seek to mature their businesses.
4G Capital has launched a loyalty programme to support their growth ambitions, whereby clients gain more favourable borrowing rates as they repay subsequent loans.
This, the company says, is in response to several factors.
Not only does it demonstrate 4G Capital’s leadership in challenging market conditions, where clients tackle extreme increases in cost-of-living and cost-of-operating, but it also forms a vital part of its mission to use and protect client data responsibly.
“In a global economic crisis, we need to energise small business earning power,” affirmed 4G Capital CEO Wayne Hennessy-Barrett.
“By dropping our prices, we stand with mwananchi to help small traders grow their credit score and access discounting while retaining our award-winning blend of enterprise training and working capital loans.
Digital financial service providers have a vital role in helping the informal economy transition to an integrated part of a modern nation”.
The move to reward loyalty and discount its “Upia” direct lending product is enshrined in 4G Capitals #HeroesoftheHustle campaign, which aims to recognise the growth and resilience of the grassroots economy in Kenya and Uganda.
All 4G Capital’s 300,000-plus clients will benefit from the scheme.
There are four loyalty categories; Bronze, Silver, Gold and Diamond, with interest rates ranging from 0.9% to 0.75%, respectively.
Typically, 4G Capital sees its clients grow their revenues by an average of 82% yearly.
Jane Oyolo, for instance, runs a budding second-hand clothes business.
She travels to Nairobi weekly in her Probox to purchase bales of clothes which she resells in Nyanza Province.
When she was first introduced to 4G Capital, she received a loan of around $160.
Since then, Jane has made her repayments within the minimum loan repayment period and has taken on numerous repeat loans.
“4G Capital has been of immense help,” she told us.
“Through my business profits, I have bought a plot of land and have even built a foundation for a house."
Indeed, as businesses such as Jane’s increase their earning power and creditworthiness, they can engage more traditional financial services and command larger working capital debt, propelling them into the formal economy and on to the next level of development and maturity.
This will be critical to driving socio-economic development across the continent, the objective of 4G Capital’s mission ‘to grow business with capital and knowledge’.
Leading Pan-African payments provider Cellulant (https://www.Cellulant.io/) and MSMEs-focused B2B digital platform Solv Kenya have signed a financial services partnership that will enable Solv Kenya’s expanding MSME partners to access digital payment and collections services offered by Cellulant.
Following the announcement of Solv’s commercial operations in Kenya last month, this partnership will enable MSMEs using the Solv Kenya platform to reconcile, receive, and view all their payments on the go under one roof.
In a 2021 report released by the Kenya Bankers Association, Micro, Small Medium-Enterprises (MSMEs) employ over 15 million people in the country contributing significantly to supporting livelihoods and creating growth in the Kenyan economy.
However, despite this, they struggle with access to finance which is mainly attributed to financiers’ limited and unclear information about their operations.
According to Sheila Kimani-Omukuba, CEO of Solv Kenya, the collaboration will enable efficient and seamless transactions for the various business enterprises participating in the SOLV marketplace.
"Processing and tracking transactions have historically been a problem for many small businesses and financial institutions have to deal with this gap.
This partnership gives us the chance to handle financial services more quickly and effectively to support their daily operations, which supports our goal of utilizing digital capabilities to enhance MSMEs' profitability, enable growth, and operational efficiency.”
More than 5,000MSMEs and over ten multinational corporations have joined Solv Kenya, and the company plans to sign up 10,000 businesses by the end of the year.
Cellulant comes on board as a technology payments partner connecting these MSMEs to the rails that enable them to make and receive payments.
Speaking to the importance of the partnership, Cellulant’s Group Chief Revenue Officer, David Waithaka said “Over the last couple of years, the uptake of our products has increased significantly as we continue to provide SMEs across Africa with both online and offline payment solutions.
By offering multiple frictionless payment methods, businesses can realise increased sales and a growing customer base.
Today, we’re excited to partner with Solv to avail these solutions to MSMEs on their platform and work together for their growth”
Kenyan MSMEs as in other African countries remain an untapped market when it comes to digital payments, yet are a major driver of the economy.
“The challenge of access to financing for MSMEs has ripple effects across the economy.
We’re going beyond offering payment solutions - pairing payment processing with other solutions to offer increased value to businesses,” added Faith Nkatha, Cellulant’s Country Manager in Kenya.
“This is an important partnership for us at Cellulant as it speaks directly to our goals - enabling seamless payments thereby accelerating economic growth across Africa.”
Cellulant joins a growing list of partners in Solv Kenya’s portfolio.
In the last three months of its pilot, Solv Kenya has signed working partnerships with several corporates including BAT, Diageo, Procter and Gamble, Lafarge, Nestle and Nokia.
The financiers include Faulu Bank, Gulf African Bank, Standard Chartered Bank Kenya, Asante MFI, and Zanifu MFI – with more partners from different sectors in the pipeline.
Through its supply chain financing solution, the platform targets to give over 100,000 Kenyan MSMEs access to funding by issuing over Kes 10 billion in working capital credit each year.
The Cooperative Ficing Agency of Nigeria (CFAN) has called on the Central Bank of Nigeria (CBN) to include housing as part of its official listing strategy.
CFAN Executive Secretary and Executive Director Mr. Emmanuel Atama made the appeal at the sixth CFAN summit in Abuja on Tuesday.
Atama said that including housing in the CBN's official inclusion campaign would help CFAN members in rural areas to have better access to housing and be officially included.
He said that the summit was aimed at accessing how the products of official inclusion could create jobs and wealth for a more secure life among the cooperative movement in the country.
The executive secretary listed the official inclusion products of the CBN to include savings, credit, pension, insurance and capital markets.
“The summit will stop at three major issues of housing, agriculture and Micro, Small and Medium Enterprises (MIPYMES).
“The CBN should include housing in its official inclusion campaign.
“The way in which money is allocated to MSMEs, they should also consider housing,” he said.
CFAN Chairman Alhaji Sadeeq Abubakar said the summit was aimed at analyzing the cooperative business environment with a view to addressing the challenges and prospect of opportunities abounding in the economy.
Abubakar said that the official listing products and momentum of CBN had had a positive impact on CFAN members.
Dr. Paul Oluikpe, Head of Official Inclusion for CBN, said that stakeholder collaboration was key to improving official inclusion in the country.
Oluikpe, Okafor's representative from the bank, said the importance attached to cooperative development as a key pillar in driving the formal inclusion of Nigerian adults cannot be overstated.
Mr. Madu Hamman, Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), said the bank's Cooperative Housing Development Loan (CHDL) provided construction funds for cooperatives registered with the National Housing Fund (NHF).
Hamman, represented assistant Mr. Dominic Agabi, said the bank had extended its cooperative lending window to the informal sector.
He said the extension was to allow all citizens equal access to both building and selling.
The managing director said the loan was disbursed to cooperative societies at an interest rate of 9.5 percent.
Hamman, who corroborated CFAN's call for housing to be included as one of the official inclusion strategies, said it would help more aid workers access housing loans.
The two-day summit attracted cooperative societies and members from different states.
============Edited. eniola williams
Source Credit: NAN
The minister of women affairs, Dame Pauline Tallen has tasked women entrepreneurs to upgrade their skills on procurement process and also have the necessary documents to meet with the required standard needed to engage in procurement processes like their male counterparts.
She also urged all ministries, agencies, parastatals including the private sector to make procurement processes gender sensitive.
Tallen made the call at a high-level policy dialogue and exhibition in Abuja to promote the application of Gender-Responsive Procurement practices in public and private organisations.
The theme of the event is, “Strengthening the Capacity of Local MSMEs/Manufacturers to Produce High-quality Personal Protective Equipment (PPEs) and Healthcare-related Products.
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She, however, noted that women-owned businesses are mostly Micro, Small and Medium Enterprises (MSMEs), adding that women had the potential to expand in scope, diversify supply chains, grow the economy as well as simultaneously improve the lives of women and girls in Nigeria.
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According to the minister “despite government’s efforts to support and empower women in MSMEs, access and participation in some of these procurement opportunities has remained challenging.
These challenges are hinged upon the fact that procurement institutions, policies and practices are gender neutral and dominated by men.
“As such, there is huge gender disparity when it comes to access procurement information by women-owned businesses.
All the procurement in ministries, departments, agencies and the private sector must be gender sensitive.
“Even when a business owned by a woman eventually makes it to the bidding process, they have limited social and financial capital to compete effectively”.
Also speaking at the occasion, National Coordinator, Association of Nigerian Women Business Network (ANWBN), Mrs Angela Ajala, said women participation in public procurement will contribute to women empowerment and gender inclusivity.
Ajala said cultural and traditional practices, discriminatory and contextual issues, less access capital and resources have put women entrepreneurs at a disadvantage in procurement processes urging women entrepreneurs to be deliberate, intentional and get the capacity training to be able to meet the needs and requirements for procurement processes.
“They should not lower standards for us because we are women.
If we need to be competitive, then all the boxes must be ticked’’, she said.
In her address, the United Nations Women Country Representative in Nigeria and ECOWAS Ms Beatrice Eyong, said 63 women entrepreneurs were trained on producing PPEs to international standard, business mentorship and branding to manage large skill production to cushion the effects of COVID-19.
Eyong further said that there are challenges of ready market for women entrepreneur’s products, urging stakeholders to include women in the procurement processes of their organizations.
“Address knowledge gaps among procurement officers on how to apply gender responsive procurement strategies and increase the participation of women entrepreneurs in the procurement space of both private and public organizations.
“We implore you to buy from women today, as it not only ensures the diversification of your supplier base and reduces supply chain risks, but you would also be contributing to the attainment of the SDGs,’’ she said.
Mrs. Pauline Tallen, Minister of Women's Affairs, urged women entrepreneurs on Thursday to improve their skills and acquire all the documentation required to participate in the hiring processes in public and private institutions.
Tallen made the call at a high-level policy dialogue and exhibition in Abuja to promote the implementation of gender-responsive procurement practices in public and private organizations.
The theme of the event is "Strengthening the capacity of local MSMEs/manufacturers to produce high-quality personal protective equipment (PPE) and healthcare-related products."
The minister emphasized the need for women entrepreneurs to update their skills and have the necessary documents to meet the required standard to participate in hiring processes like their male counterparts.
“All procurement in ministries must be gender sensitive. But at the same time, women must meet all the standards, we must not lower the standard because we want to favor women. Women are more than capable,” she said.
She described women as catalysts in the growth and development of any country, adding that, “In Nigeria, women account for 41 percent of ownership of Micro, Small and Medium Enterprises (MSMEs) represented by women entrepreneurs.
"This has placed Nigeria among other sovereign states with a significantly high number of women entrepreneurs globally," he said.
However, she noted that women-owned businesses are mostly Micro, Small and Medium Enterprises (MSMEs), saying that “women had the potential to expand their reach, diversify supply chains, grow the economy and, at the same time, improve the lives of women and women. girls in Nigeria.
Tallen said that despite efforts by governments to support and empower women in MSMEs, accessing and participating in some of these recruitment opportunities remains a challenge.
“These challenges depend on the fact that procurement institutions, policies and practices are gender-neutral and male-dominated.
“As such, there is a huge gender disparity when it comes to accessing procurement information.
“Even when a wholly-owned company eventually makes it to the bidding process, it has limited registered and official capital to compete effectively,” he said.
The minister said that the event had the collaboration of UN Women and other partners to promote gender-responsive procurement practices in government and private sector MSMEs.
Ms. Beatrice Eyong, Country Representative of UN Women in Nigeria and ECOWAS, said that 63 women entrepreneurs were trained in PPE production according to international standards, business mentoring and branding to manage a large production of skills to cushion the effects of COVID. -19.
Eyong noted that there are market-ready challenges for women entrepreneurs' products, and urged stakeholders to include women in their organizations' procurement processes.
“Address knowledge gaps among procurement officers on how to apply gender-sensitive procurement strategies and increase the participation of women entrepreneurs in the procurement space of public and private organizations.
“We implore you to buy from women today as you not only ensure the diversification of your supplier base and reduce supply chain risks, but you would also be contributing to the achievement of the SDGs,” she said.
In addition, Ms. Angela Ajala, National Coordinator of the Association of Nigerian Women's Business Networks (ANWBN), said that the participation of women in public procurement will contribute to women's empowerment and gender inclusion.
Ajala added that cultural and traditional practices, discriminatory and contextual issues, less access to capital and resources have put women entrepreneurs at a disadvantage in hiring processes.
She advised women entrepreneurs to be deliberate, intentional and obtain the necessary training to be able to meet the needs and requirements of the hiring processes.
“They shouldn't lower the standards for us because we are women. If we need to be competitive, then all the boxes have to be checked,” she said.
Other highlights of the day included a panel discussion, a presentation on gender-responsive procurement, and a display of various finished products made by MSMEs.
edited
Source Credit: NAN
Dr Chinyere Almona, Director General, Lagos Chamber of Commerce and Industry (LCCI) has charged insurance and pension operators to provide incentives to boost patronage of the micro insurance and micro pension.
Almona made the call while delivering a paper at the 7th Annual Conference of the National Association of Insurance and Pension Editors (NAIPE) on Friday in Lagos.
The theme of the conference was: ‘Onboarding MSMEs into Micro Insurance and Pension Space in Nigeria.
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She noted that operators in the insurance and pension industries must design products that would attract the informal sector to embrace micro insurance and micro pension plan.
“Although the insurance and pension sectors have been doing a lot in driving the financial inclusion initiative of the Federal Government, there is need to encourage those in the informal sector, the Nigerian Nano, Micro, Small and Medium and Enterprises (NMSMEs) operators to embrace micro insurance and micro pension plan,” she said.
According to her, insurance underwriters and pension administrators must take advantage of the huge opportunities in the NMSME sector.
The LCCI DG mentioned opportunities in the NMSME’s sector as; large workforce and willing adult population, expanding distribution channels, favourable regulatory environment, mature financial services sector and revolution in information technology and digital innovations.
Almona said the total number of people employed by MSMEs stood at 61.9 million, representing 87.9 per cent of the total workforce in the country.
She added that the number of employments generated by the informal sector was 16 million while the formal sector generated 7.5 million in 2020.
Almona charged operators in both sectors to invest in enabling technology to increase awareness and enlightenment on the benefits of micro insurance and micro pension.
The LCCI DG listed the benefits of such awareness to include safety net at retirement, alignment with the current social empowerment programmes, minimal old-age poverty and improvement in the standard of living for the elderly, among others.
She charged the National Insurance Commission (NAICOM) and the National Pension Commission (PenCom) to provide necessary regulatory framework that supported NMSMEs.
“With regulatory support, Nigeria is well placed to achieve meaningful micro-pension coverage rapidly as well as enhance insurance penetration.
“The ratio of insurance assets to Nigeria’s Gross Domestic Product (GDP) has remained stagnant at 1 per cent, while microinsurance is at a very early but growing phase.
“The percentage ratio of pension assets to GDP remains low, while the total pension contribution remitted by the public sector is slightly higher than that of the private sector, which justifies the low penetration of pension in the private sector of the economy, ” she said.
In her Keynote address, the Director-General, National Pension Commission (PenCom), Mrs Aisha Dahir-Umar, said on-boarding SMEs into the micro pension scheme was one of the contributions of the pension industry to the financial inclusion initiative of the Federal Government.
Dahiru-Umar, represented by the Head, South West Office of PenCom, Dr Tunde Alayande, said the micro pension plan was designed for those in the informal sector, including the SMEs.
She explained that PenCom, in collaboration with the Pension Operators Association of Nigeria (PenOp), had come up with lots of initiatives for the SMEs for the benefit of the industry.
In his goodwill message, Chairman, Nigerian Insurers Association (NIA), Mr Segun Omosehin, commended NAIPE for organising a conference which was not only significant to the insurance industry but to the entire finance industry.
“NAIPE is not only projecting the image of the industry but making people to understand what we do, what we represent and how it can impact our economy,” Omosehin said.
Earlier in her welcome address, the Chairman of NAIPE, Mrs Nkechi Naeche-Esezobor, said the theme of the conference was important because NMSME was the driver and engine of growth of the Nigerian economy.
Naeche-Esezobor urged micro insurance and micro pension operators to see SMEs as assets to their growth by ensuring that they were properly captured.
NewsSourceCredit: NAN
Gov. Babajide Sanwo-Olu of Lagos State, says his administration will continue to prioritise the growth and development of Micro, Small and Medium Enterprises (MSME) to further boost the economy of the state.
Sanwo-Olu made the pledge at the Lagos Chamber of Commerce and Industry (LCCI) 2022 Lagos International Trade Fair (LITF) with the theme: “Connecting Businesses, Creating Value,” on Friday in Lagos.
He described the MSMEs as the heartbeat of any economy, saying that their development was critical, particularly in the face of the current harsh global uncertainties posed by COVID-19 pandemic and the Ukraine-Russian war.
“There is no gainsaying that most of the businesses that will be participating in this fair are MSMEs, which are the bed rock of sustainable development in most global economies.
“In Nigeria, this sector is the heart beat of our industrial and economic development and in Lagos State, MSMEs have significantly contributed to employment creation, value addition, income generation and appreciable poverty reduction,” he said.
He added that MSMEs were crucial to the state’s economic growth and stability, and its quest to achieve the Sustainable Development Goals (SDGs), particularly in the promotion of creativity and decent work for all.
“As a government, our administration’s priority is the business sector, with particular focus on MSMEs.
“With a population of over 22 million, Lagos is the 5th fastest growing city in the world, which is why it is an investors’ delight.
“Therefore, it is imperative to formulate and implement policies, programmes and projects that would propel the state to a globally competitive economy,” Sanwo-Olu said.
He assured that his government would continue to create policies that would deliberately engender ease of doing business to enable the state attract investments and allow businesses to thrive.
According to him, the state will not rest on its oars, until businesses are properly positioned and Lagos becomes the biggest economy.
He also encouraged public-private partnership to drive development in infrastructure, health, education and others.
“This is to utilise the resources trapped in private sector.
“We would continue to ensure ease of doing business deliberately to help investors with planning and risk taking to further increase job opportunities.
“As a government, we would continue to look at what we can do to engage our youths, and we are creating a platform for new start-up innovation for our creative minds.
“We are creating an ecosystem and providing grants to help start ups and MSME through the Lagos State Employment Trust Fund(LSETF).
“All of these interventions and funding are available and we implore MSMEs to take advantage of them to address brain drain,” he said.
Sanwo-Olu added that the state government was tackling issues around climite change and stressed the need for innovation to address the development.
Ide John Udeagbala, National President, Nigerian Association of Chamber’s of Commerce, Industry, Mines and Agriculture (NACCIMA), lauded the Central Bank of Nigeria (CBN) plan to redesign and reprint the nation’s currency.
According to him, the step should have been taken five years ago to control currency circulation, improve currency security and enhance adoption of cashless economy.
He, however, stated that the country’s move to borrow to fund part of the 2023 budget was worrisome given its current debt profile.
He said equally of concern were the parameters of assumptions in the 2023 budget estimates, especially the dollar to naira conversion rate put at 435.57 to the dollar.
According to him, most businesses in the country thrive on the parallel foreign exchange market rates with no measurable checks in sight by the monetary authorities.
“Consequently, most manufacturers will continue to purchase dollars at the parallel market in the coming year.
“It is, therefore, evident that the 2023 budget is not a true reflection of the economic reality of today’s Nigeria,” he said.
Udeagbala, noting the possibility of Nigeria hosting the 2025 Intra-African Trade Fair (IATF), charged government to buy into the possibility by providing the infrastructure which includes security and foreign exchange availability for the fair.
“Some economic benefits include foreign exchange earnings, infrastructural development and reviving of dying SMEs.
“IATF is a vehicle being used to promote trade and exhibition.
“However, for Nigeria to benefit from this, we must take care of our socio -economic challenges such as infrastructure deficits, forex challenges and the likes.
“It is the hope of NACCIMA and organised private sectors in general that government will chart its course towards addressing these challenges in line with our numerous suggestions outlined and place our economy on prosperous path,” he said.
NewsSourceCredit: NAN
