Connect with us

Finance

No More Treasury Bills for Individuals Says CBN

Published

on

T-Bill
  • No More Treasury Bills for Individuals Says CBN

In a bid to compel individuals to invest in the economy, the Central Bank of Nigeria has directed all Deposit Money Banks and other financial institutions to cease the sale of treasury bills to individuals and small firms starting from November 29.

Bank officials who disclosed this to Punch correspondents said only big corporate organisations would be allowed to invest in treasury bills henceforth.

This is in-line with the CBN policy of stimulating growth via new investment and job creation. It should be recalled that the CBN enforced banks’ loan-to-deposit ratio of 60 percent then increased it to 65 percent to force financial institutions to lend more to the real sector.

While, existing treasury bills investment would be allowed to continue until the end of their maturity, operators are trying to see if the deadline could be extended to allow financial institutions enough time to create awareness.

A bank official said, “Operators are trying to see if the November 29 deadline given for the implementation by the CBN could be extended, so as to create enough awareness. But there is no move for the reversal of the directive.”

The move is expected to boost savings deposits across banks, however with interest below what the treasury bills offered and in some cases force individuals with huge capital to invest in the economy instead of keeping their funds idle.

A source from the CBN said, “Many people with huge cash prefer to keep their funds idle in treasury bills instead of investing the funds. Some people collect huge severance package, have huge funds but they have refused to invest the money.

“We want these funds to be useful in the economy so that they will be available in the banks and can be invested to create more jobs in the country.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Continue Reading
Comments

Finance

Zambia: African Development Bank Approves $1.4 Million Grant to Improve Household Food Security in the Wake of Covid-19

Published

on

Food Security - Investors King

The Board of Directors of the African Development Bank has approved a $1.4 million grant from the Global Agriculture and Food Security Program to reduce malnutrition among the Southern African nation’s most vulnerable households.

The Mitigating Impacts of Covid-19 on Household Food Security Project will create about 150 permanent skilled or semi-skilled positions and 40 part-time unskilled jobs in crop, livestock and fisheries value chains. The project will supply inputs for crops, livestock and aquaculture enterprises to promote good agricultural practices and increase food production. There will also be a capacity building component.

“The agriculture sector is an important source of livelihoods, employment and GDP in Zambia. Increased food supply resulting from additional grant funds will lead to more jobs, improved quality of life, and reduction of malnutrition in many impacted communities,” said Martin Fregene, African Development Bank Director of Agriculture and Agro-industry.

The project provides supplementary funds to the ongoing Agriculture Productivity and Market Enhancement Project, a $32 million grant-funded initiative also from the Global Agriculture and Food Security Program, which has been managed by the Bank in the Sinazongwe, Gwembe, Chongwe, Rufunsa, Serenje and Chitambo districts of Zambia over the past five years.

Global Agriculture and Food Security Program administrators said the six districts were selected based on poverty levels, food insecurity and malnutrition prevalence. However, with this funding and program, these districts have the potential for economic growth, and to promote crop diversification. Some 5,000 people, including 3,750 women and 1,000 youth, will benefit. Some 5,000 people will also benefit indirectly along the commodity value chains.

Since the outbreak of Covid-19, Zambia has implemented bold measures to protect the health and economic well-being of its citizens. These steps included a nationwide program to scale up agricultural diversification. The Bank’s Covid-19 Response Facility launched in 2020 has been a lifeline to member governments by providing resources to tackle the pandemic.

“The facility will consolidate the Bank’s support for Zambia’s economic diversification and impact mitigation against Covid-19,” said Mary Monyau, the Bank’s Country Manager in Zambia.

The Zambian project is in line with the Bank’s High 5 strategic priorities, specifically, Feed Africa, Industrialize Africa, and Improve the quality of life for the people of Africa. Similar Bank projects have been successfully undertaken in Malawi, Niger, Liberia, Senegal and the Gambia.

The Global Agriculture and Food Security Program was established as a response to the 2008/09 world food price crisis, following a commitment by the Group of 8 nations (G8) in September 2009 to mobilize up to $20 billion for agricultural development and food security. The World Bank supervises about half of the project portfolio of the Global Agriculture and Food Security Program. The African Development Bank managed about a quarter in December 2019, and the International Fund for Agricultural Development, 11%.

Continue Reading

Insurance

NAICOM Partners FRSC To Enforce Compulsory Motor Insurance

Published

on

Insurance NAICOM- Investorsking

The National Insurance Commission (NAICOM) has partnered with the Federal Roads Safety Corps (FRSC) on the enforcement of compulsory motor insurance in the country.

The move will ensure that about 10 million uninsured vehicles in the country are captured into the insurance industry. The insurance industry is expected to generate additional revenue of N50 billion through this.

Mr. Sunday Thomas, the Commissioner for Insurance/CEO, NAICOM, spoke during a courtesy visit from The Corp Marshall, FRSC, Boboye oyeyemi, and his team, he said the partnership is needed to enforce vehicle insurance as part of the compulsory insurances, stating that, this move will eradicate insurance racketeers while ensuring that those who fail to comply are adequately prosecuted.

He promised that the regulatory body and FRSC will work out an effective plan for the enforcement of 3rd party motor insurance in the country.

Boboye Opeyemi, on his part, appreciated the concerns of the insurance regulator, noting that the road safety corps is more than ready to work with NAICOM to ensure vehicles on Nigerian roads carry genuine insurance certificates.

Newsmen had earlier reported that, of the estimated 13 million vehicles on Nigerian roads across the country, only three million of them have at least third-party motor insurance certificates, leaving about 10 million vehicles uninsured.

The 10 million uninsured vehicles, according to findings, were the ones owned by the government and private individuals and companies.

Investigation shows that some of these 10 million vehicles parade fake motor insurance papers, while some did not have any insurance coverage even as few who had genuine insurance papers before, have failed to renew when their previous motor insurance cover expired.

To this end, these uninsured vehicle owners newsmen findings show, have violated the Federal Roads Safety Corps(FRSC) Act which mandates all vehicles on Nigerian roads to carry at least a third-party motor insurance policy.

Third-Party Vehicle Insurance comes at a fixed price of N5,000 for privately used saloons and SUVs, while commercially used vehicles are charged N7,500 and in some cases, N5,000.

Using the N5,000 insurance valuation of which each vehicle should at least carry, the insurance industry can recoup N50 billion premium income annually if all the 10 million vehicle owners could be compelled to have genuine insurance certificates.

Low enforcement of compulsory motor insurance, according to market observers, has been responsible for the insurance apathy of road users.

To recoup the N50 billion, newsmen learned that, prior to this engagement, insurance operators, under the auspices of the Nigerian Insurers Association (NIA) have engaged Lagos State in the past on enforcement of motor insurance through their licensing offices. Similarly, there were already ongoing discussions with Kaduna, Niger, Kogi and Ogun States to ensure that motorists get genuine insurance cover at the point of renewing their vehicle particulars at licensing offices across the aforementioned states.

The chairman, NIA, Mr. Ganiyu Musa, had earlier disclosed that the industry is embittered about what it is losing to insurance racketeers and non-insurance of vehicles, disclosing that, the association, on behalf of the insurance industry, is engaging five states with plans to extend to other states as the time progresses.

According to him, “we are also working closely with the state vehicle Inspection service on enforcement of Third Party Motor Insurance in the state. We are also engaging Niger, Kaduna, Kogi and Ogun States, and remain hopeful that other states will see value in the platform and embrace it. Out of the estimated 13 million vehicles in Nigeria, only about 2,939,767 Third Party Motor policies are in force as of Apr 26, 2021.”

Continue Reading

Insurance

Heirs Life Assurance Partners Avon Medical On World Blood Day

Published

on

Heirs Life Assurance- Investors King

Heirs Life Assurance (HLA), the specialist life insurance company, has partnered with Avon Medical to organize a blood drive in commemoration of the 2021 World Blood Donor Day.

The event was held on Monday, June 14, 2021, at the ultramodern Avon Medical Dialysis Centre in Ikeja, Lagos. At the event, numerous individuals were present to donate blood for those in dire need of medical attention.

This year’s edition sees the first partnership between Heirs Life and Avon Medical. The goal is to increase awareness of the importance of safe blood for transfusion and highlight the critical role voluntary blood donors play in national health.

The Chief Marketing Officer, Heirs Life Assurance, Ifesinachi Okpagu confirmed that the partnership is in line with the company’s goal of promoting, not just the importance of life insurance, but wholesome living.

“At the core of our business operations at Heirs Life Assurance is care for people and their families and we are pleased to have demonstrated this with our partnership with Avon Medical. There are several statistics that show that blood donation is of many benefits to the end user as much as it is to donors and here today, we are raising awareness for the need to encourage this culture and celebrate as many that have come out to be superheroes,” she said.

The Head of Marketing and Corporate Communications at Avon Medical, Shekinah Olagunju, expressed delight in the partnership, describing it as laudable especially as it helps both companies further their commitment to building a healthier nation and, in the process, improving the economy and transforming Africa; values held by the companies within the Heirs Holdings group portfolio.

Since its official launch on Tuesday, June 1, 2021, Heirs Life has continued to actively push its offering of life insurance that is simple, quick, accessible, and reliable with its array of value-adding products, served on several easy-to-use platforms.

Heirs Life’s product offerings comprise insurance-backed savings plans and life insurance security for individuals, families, children’s education, debtors, creditors, entrepreneurs, and employees. The company is backed by top-notch Reinsurers to provide second-layer security for its clients’ insurance portfolios.

Continue Reading




Advertisement
Advertisement
Advertisement

Trending