As the world emerges from COVID-19, there is renewed impetus to tackle climate change. Ahead of COP26, IMF Managing Director Kristalina Georgieva joined U.S. Special Presidential Envoy for Climate John Kerry to discuss how to turn climate ambitions into action while creating vibrant and inclusive opportunities as part of the transition to the new climate economy as part of IMF and World Bank Group’s Spring Meetings.
“Climate change is a growing risk to macroeconomic stability and to financial stability. But also with the same token climate action, investment in clean technologies and in climate resilience generate green growth and green jobs. This is what the IMF is all about. Stability, employment, growth. And this is why climate is now in the DNA of our institution, at the heart of our work, as we engage in policy discussions with our members. We look at how they can have more successful mitigation and adaptation strategies. As we look at financial stability, we measure climate related financial stability risks and we act on data because good data make good policy,” said Georgieva.
Secretary Kerry shed a light on the new opportunities for jobs and growth a new climate economy would create
“It’s pretty basic economics. The fact is that there is incredible job opportunity, the creation of new jobs in the investments that need to be made in order to deal with the climate crisis. Let me give you an example. The Bureau of Labor Statistics of the United States says there are three jobs that will grow more than 50 percent over the next year. Number one is wind turbine technician. Number two is nurse practitioner; we know why that’s happening. And number three, a solar panel installer. It’s happening now. The market is already moving. It’s moving away from coal. It’s moving to renewables to alternative sustainable energy,” said Kerry
Managing Director Georgieva stressed on the ways in which the IMF can direct membership countries towards a greener future through Programs especially set for vulnerable countries to help them step up through good policies and fiscal space to make sound investments.
“It is hugely important that we recognize dealing with the climate crisis means mitigating, bringing emissions down, but also adapting. We need to walk and chew gum at the same time. And unfortunately, you’re so right, many countries that have done very little to nothing to create this problem are suffering the consequences. This is why it is paramount for the wealthy world to deliver on the promise of a hundred billion dollars a year between now and 2030 to help the developing world accelerate the transition to low carbon, but also adapt. And for us at the IMF, what it means is that we look at ways in which we can help these countries. And in fact, our preoccupation is with adaptation strategies. What can be done for countries to have the financial buffers so when they are hit by shock, they can act and have the means to invest in resilience,” said Georgieva.
She also added that the COVID-19 crisis is proof to how vulnerable the world is to shocks and that collaborative efforts is our way out to a more resilient world.
“We have seen in this pandemic that we are vulnerable to shocks and what is ahead of us is a more shock prone world. To build resilience to the shocks, we ought to invest in people, so they are healthy, educated, protected in tough times and resilient. We have to invest in nature. So, nature is resilient. And of course, we have to continue to invest in the resilience of our economy. I think that the pandemic has put an earring on our ear and it is don’t joke with nature. It also told us we are in this together. We have to work together to get to a more resilient world,” said Georgieva.
Foreign Exchange: First Bank to Discontinue Dollar Transactions on Naira Card
First Bank of Nigeria has announced that international transactions on its naira MasterCard will be suspended, Starting from 30th, September 2022
First Bank of Nigeria has announced that international transactions on its naira MasterCard will be suspended, Starting from 30th, September 2022.
In a recent email that First Bank sent to its customers, the bank stated customers will no longer be able to perform international transactions on First Bank Naira credit card, virtual card and visa prepaid card.
The message read, “Due to current market realities on foreign exchange, you will no longer be able to use the Naira Mastercard, Naira Credit Card, our Virtual card and Visa Prepaid Naira card for international transactions. This will take effect on 30 September 2022,” First Bank said.
The message added that customers can only use their multicurrency and other permitted cards to make international transactions.
“Please use your Visa Debit Multicurrency Card, Visa Prepaid (USD) Card and Visa Gold Credit Card to continue transacting abroad with limits of up to $10,000.” The statement concluded.
It could be recalled that in July 2022, Standard Chartered Bank also suspended international transactions on its naira visa debit card.
Other banks that have suspended international transactions on naira cards include Flutterwave, Eversend and other financial technology platforms.
Investors King had earlier reported that Nigerian banks have reduced international transactions to $20 on Naira cards due to the ongoing foreign exchange scarcity in Nigeria.
The reduction started in 2020 from $500 to $100 in 2021. In March 2022, many of the financial institutions subsequently reduced international transactions on naira cards to $20.
At the 364th Bankers Committee Meeting in Abuja in 2021, the CBN Governor, Godwin Emefiele disclosed that the apex bank will stop supplying foreign currency to Deposit Money Bank (DMBs) otherwise known as commercial banks by the end of the year. He, therefore, urges them to source for their foreign exchange from export proceeds.
FG Plans to Borrow to Finance 2023 Budget as Debt Profile Hits N42.84 Trillion
Nigeria’s total public debt stock is now N42.84 trillion, or $103.31 billion as of June 2022
With the drop in oil production and Nigeria’s revenue generation, Nigeria’s public debt is projected to increase further in 2022 and 2023.
According to the Debt Management Office (DMO), Nigeria’s total public debt stock is presently N42.84 trillion, or $103.31 billion as of June 2022.
As of March 2022, Nigeria’s total debt profile was N41.60 trillion or $100.07 billion. This shows an increase of N1.24 trillion in three months.
Investors King learnt from the statement published on the DMO website on Tuesday that the total debt represents the domestic and external debt stocks of the federal government, the 36 states and the Federal Capital Territory (FCT).
The statement further clarified that the foreign component of the debt stands at N16.61 trillion, or $39.96 billion, the same figure it was in March 2022. While the local component increased to N26.23 trillion or $63.24 billion.
The statement also disclosed that a higher proportion (58 percent) of the external debts were concessional and semi-concessional loans which the government obtained from multilateral financial institutions such as the International Monetary Fund (IMF), the World Bank, Afrexim and African Development Bank.
These concessions and semi- concessions include loans from bilateral lenders such as Germany, China, Japan, India and France,”
Meanwhile, the increase in domestic debt stock from N24.98 trillion or $60.1 billion in March to N26.23 trillion or $63.24 billion in June was due to the credit facilities which the Federal Government raised to part-finance the deficit in the 2022 budget.
Nigeria’s rising debt profile has been a major subject of discussion among analysts. Investors King earlier reported that the 2023 budget proposal has a deficit of more than N12 trillion which will likely be financed by another set of borrowings and subsequently increase the country’s debt profile.
Nevertheless, the Debt Management Office, however, stated that Nigeria’s Debt-to-GDP ratio remains under control at 23.06 percent, Nigeria’s self-imposed limit of 40 percent.
Prudential Zenith Life Insurance Grows Profit After Tax by 75 in 2021
Prudential Zenith Life Insurance Limited grew profit after tax by a whopping 75% to ₦1.13 billion, up from ₦646 million recorded in 2020.
Despite rising economic uncertainties and the challenging business environment experienced in 2021, Prudential Zenith Life Insurance Limited grew profit after tax by a whopping 75% to ₦1.13 billion, up from ₦646 million recorded in 2020.
The company disclosed this in its audited financial statement for the period ended December 31, 2021, and obtained by Investors King on Monday.
In the financial statement approved by the National Insurance Commission (NAICOM), Gross Written Premium (GWP) and Annualized Premium Equivalent (APE) expanded by 16.3% and 9.3%, respectively. This was a result of the 27% growth recorded in new business acquisition for Group Life written during the period.
Similarly, investment income grew by 30% year-on-year due to a significant increase in the interest-generating assets of the company, and commission income also increased by 43% during the period.
The financial performance is a testament to the continued focus on investments, as the company remains committed to building a strong market-leading position in Nigeria by enhancing its capabilities, strengthening its digitally enabled multi-channel distribution network, and broadening the range of products and services that are available to customers in order to meet their needs.
Despite the challenges experienced during the Covid-19 pandemic in 2020, Prudential Zenith was able to achieve this strong growth in 2021 and is poised to continue improving its performance in the upcoming financial years. Prudential Zenith will continue to develop and launch unique products to meet customers’ needs, leveraging technology and its core corporate governance structure to deliver faster claims settlement. The company will also continue to prioritize the health, safety, and welfare of customers, who subscribe to its unique insurance product offerings.
Prudential Zenith Life Insurance Ltd (PZL) is a subsidiary of Prudential Plc., established in 2017 when Prudential Plc acquired a 51% holding in Zenith Life Insurance. PZL is one of the most capitalized companies in the Nigerian insurance industry with a wide range of individual products including savings & investments-linked products, endowment, and protection products designed to meet the needs of individuals and their families. For corporate clients, the company’s product offerings include Group Life, Key-Man Assurance, Credit Life, School Fees Protection, and Mortgage Protection, ensuring that the welfare of clients’ staff and families are met.
Prudential Plc provides life and health insurance, and asset management in Africa and Asia, helping people get the most out of life by making healthcare affordable and accessible and by promoting financial inclusion. Prudential protects people’s wealth, helps them grow their assets, and empowers them to save for their goals. It has more than 19 million life customers and is listed on stock exchanges in London (PRU), Hong Kong (2378), Singapore (K6S), and New York (PUK).
Prudential Plc has insurance operations in eight countries in Africa: Nigeria, Cameroon, Cote d’Ivoire, Ghana, Kenya, Togo Uganda, and Zambia. With over 1 million customers, Prudential Africa works with over 11,000 agents and six exclusive bank partnerships, with access to over 600 branches to bring value-added insurance solutions to its customers.
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