- Global Insurer Threatens to Blacklist Nigerian Airline Operators
World’s insurance market leader, Lloyd’s of London, has issued a warning to Nigerian airline operators that it may be forced to blacklist or downgrade them over their continued failure to fulfill their obligations of paying premiums regularly.
Lloyd’s representatives, who visited the country recently, said that the Nigerian market was a high risk market and that the volume of business from it had been small, while airline operators were not paying their premiums.
The representatives added that based on this, Lloyd’s might have no other choice than to blacklist the country and that the decision might have far-reaching consequences for the aviation industry and the country at large.
The Chairman, Airline Operators of Nigeria, Capt. Nogie Meggison, said indigenous airlines could not pay the premiums due to forex constraints.
According to him, Lloyd’s market accounts for about 92 per cent of reinsurance of airlines globally; with the Russian market Cyprus and others boasting of five per cent by Russian market, while a mere two per cent is retained locally.
He said, “The Nigerian market is grossly unable to effectively underwrite risks in aviation because of the high exposure of an average of $500m for just one airplane to cover hull, war and third party liability. When this figure is multiplied by the number of aircraft operating in the country, it becomes clear that Nigerian insurance companies can’t cope considering the enormous volume of resources needed to cover all those aircraft of which the total coverage value will be in excess of $6bn.
“Virtually 100 per cent of the aircraft being operated in Nigeria are re-insured in the Lloyd’s market. Hence, Nigeria can’t afford to be blacklisted as a nation because this will have very grave and deleterious consequences, as the entire domestic airlines will shut down, since airplanes can’t be operated without being insured.”
He said it would take some days at best to switch to the secondary market of Russia and China, whose premiums would also have skyrocketed if Nigeria was blacklisted by Lloyd’s.
Meggison added, “A blacklist will certainly have a negative impact on the Nigerian economy arising from the inability to acquire aircraft from lessors with no insurance, total suspension of operations by airline charter and oil support helicopters, job losses, and other sectors being reinsured by Lloyd’s market such as oil rigs, vessels, high rise buildings, airports and terminal buildings etc.
“Similarly, a downgrade or outright blacklist will mean very high premiums due to high risk levels.”
He added that if the country was blacklisted, the premiums would rise by about 300 per cent due to the high risks.
“We are not keeping to payment dates. Domestic carriers have a four-month backlog on payment. It will be funny to wait until there is an incident before the airlines try to pay their premiums,” Meggison said.
He urged the Minister of State for Aviation, Senator Hadi Sirika, to, as a matter of urgency, come to the aid of domestic airlines by forging a joint working group with the Federal Ministry of Finance and the Central Bank of Nigeria to brainstorm on how the nation could take steps to forestall a potential backlash on the Nigerian economy.
Arla Food To Set Up Dairy Farm In Nigeria, Train 1,000 Dairy Farmers
Arla Foods, makers of Dano Milk, has announced that it will build a state-of-the-art commercial dairy farm in Northern Nigeria where it plans to train and support up to 1,000 local dairy farmers as part of its long-term commitment to developing the Nigerian dairy sector.
The 200-hectare farm, scheduled to open in 2022, will have housing for 400 dairy cows, modern milking parlours and technology, grasslands and living facilities for 25 employees.
The firm said the farm is expected to produce over 10 tonnes of milk per day to supply locally produced dairy products to Nigerian consumers.
Managing Director, Arla Foods, Peder Pedersen said “there was a great need for nutritious food and dairy products to satisfy the growing demand from Nigeria’s fast-growing population.”
“This requires a complementary approach where imported food is crucial to ensuring food security while also supporting the government’s long-term agricultural transformation plan to build a sustainable dairy sector in Nigeria,” Pedersen said.
In 2019 Arla scaled up its commitment to developing a sustainable dairy sector in Nigeria with a new public-private partnership with the Kaduna State government.
It is the first of its size and offers 1,000 nomadic dairy farmers permanent farmlands. Arla is the commercial partner that will purchase, collect, process and bring the local milk to market.
The Board of Chemical and Allied Products Plc (CAP Plc) Appoints Vitus Ezinwa as a Non-Executive Director
The Board of Chemical and Allied Products Plc (CAP Plc) has appointed Dr. Vitus Ezinwa as a Non-Executive Director of the company effective from Thursday June 17, 2021, subject to the approval of the Company’s shareholders at the next Annual General Meeting.
The company announced in a statement signed by Ayomipo Wey, Company Secretary/General Counsel, CAP Plc.
Dr. Ezinwa is a seasoned business manager and human resource professional with experience in leading multinational corporations.
He is currently the Chief Operating Officer (COO) of UAC of Nigeria Plc (“UACN”) and previously, the Group Director of HR at UACN.
Prior to Joining UACN, Dr. Ezinwa worked as Group Human Resources Director for Promasidor Africa; Human Resources Director, CocaCola Nigeria & Equatorial Africa with responsibility for 10 countries and Human Resources Director for British American Tobacco, West & Central Africa covering Ghana, Benin, Niger & Togo.
Dr. Ezinwa was, until recently, the Group Human Resource Director for Tropical General Investments (TGI) Group.
He is a member of the Advisory Board of Afterschool Graduate Development Centre, member of the Institute of Directors and a Fellow of the Chartered Institute of Personnel and Development (CIPD) UK.
He is a co-founder and Director of HR Network Africa and was until 2014, a member of the Lagos Business School’s Advisory Board. He holds a Bachelor’s degree in Sociology/Anthropology from the University of Nigeria, Nsukka, MBA in Management from Lagos Business School, a Master’s in applied business research and a Doctorate in Business Administration, both from Swiss Business School, Zurich, Switzerland.
In addition to holding an executive director role on the Board of UACN, Dr. Ezinwa is a non-executive director of Grand Cereals Limited.
DLM Capital Group Retains Position as Best Structured Finance & Securitization Team in West Africa
DLM Capital Group, a prominent Developmental investment bank, has once again emerged as the best-structured finance and securitization team in West Africa at the just concluded Capital Finance International (CFI) 2021 awards.
The leading developmental investment bank has won the award in the last three years to affirm its position as the leading investment institution and asset manager in the region.
CFI awards seek to identify the contributions of individuals and organizations that contribute significantly to the advancement of economies and truly add value for all stakeholders.
DLM Capital Group creates bespoke business solutions for alternative financing and harnessing funds for growth. The group focuses on four key sectors — consumer credit, agriculture, microfinance, and education with a mandate to reduce poverty and improve living conditions for Africans, while mobilizing resources for the continent’s economic and social development.
“In the past three years, our portfolio management team’s performance has remained consistent, and our clients have benefited immensely from exposure to our solutions, including the NMRC securitization deal and the DLM Primero BRT Securitization,” said Head of Corporate Communications and Marketing, DLM Capital Group, Chinwendu Ohakpougwu.
“We are positioned to provide services to an expansive client base of retail, high net-worth and institutional customers. DLM Capital Group remains committed to constantly providing financial solutions that will enable our clients make a difference, and we are honored to be recognized once again as a reflection of the quality of support offered to our clients’,’ she added.
DLM has won recognition in West African capital markets, acting as a sole arranger to over 80 percent of structured finance transactions in Nigeria — and all the securitization transactions. It provides deal structuring, advisory execution and capital raising services across the Nigerian capital market.
The Institution recently launched an asset financing scheme and is preparing a venture into digital banking under its subsidiary, Sofri.
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