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Dangote Pays N5b Premium to Insurers in 2016

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WAPIC
  • Dangote Pays N5b Premium to Insurers in 2016

Dangote Industries Limited paid over N5 billion as insurance premium in 2016 to insurance companies that insured its insurance portfolio, Chairman, Dangote Group, Alhaji Aliko Dangote has said.

Dangote who was represented by the Group Chief Risk & Insurance Officer Dangote Industries, Dr. Adenike Fajemirokun, spoke yesterday on the topic, ‘Issues and Challenges of Consumers in the Management of their Insurance Portfolio,’ at the at the First Interactive Session with Major Consumers of Insurance Products and Services organised by the National Insurance Commission (NAICOM) held in Lagos.

He however said some insurance firms are owing Dangote claims of over N400 million since 2012, and called on insurers to collaborate with the National Insurance Commission (NAICOM) for achievement of transformation agenda.

He said they also expect NAICOM to increase regulation, while insurers should also self regulate.

He said: “Insurers need to be more proactive in studying the operations of consumers and fashion out generic risk solution models. There should be stronger insurers with prompt claims paying abilities and consistent customer experience

Meanwhile, Commissioner for Insurance, Mohammed Kari said NAICOM, being the regulatory agency of the saddled with the responsibility of superintending over the insurance sector in Nigeria has, as part of its primary mandate the protection of consumers (policyholders) – both corporate and individual.

“Our gathering here today is indeed, one of the steps being taken by the Commission towards achieving that mandate. The timing for this session wascarefully chosen and considered appropriate in view of current changes in the public sector environment especially with the Executive Order on Ease of Doing Business issued to all Ministries, Departments and Agencies of Government. Another reason is the yearnings shown by you, the consumers, for better services from insurance institutions among others.

“We believe the principles Ease of Doing business order should permeate through the value chain of our sectoral service providers. We happily noted that at the same time insurance institutions have also engaged themselves on the need for them to come up with a service level agreements, detailing how they would improve service delivery above what the law provide especially on timelines of task completion. I am happy to note here that they have so far agreed to shorten some tasks completion time of their major activities on the basis of self regulation and market agreements first between themselves and secondly between them and you the consumers of their services. The Commission had signalled the issue of effective and efficient service delivery to consumers as a key priority with its establishment of Complaint Bureau Unit to deal with complains from members of the public against any insurance operator. This Unit had recently been upgraded and is headed by a Deputy Director to attend to aggrieved consumers.

“ Many aggrieved consumers have continued to access this desk to register their complains with us. We advise you to take advantage of this desk and report your challenges to us and I assure you that any company found in default shall be compelled to do the needful. It is pertinent to inform you that Stakeholder engagements like this will, going forward, form a major avenue of interactions with consumers. We intend to hold this engagement bi-annually to foster a mutual relationship between the Commission, the insureds and the insurers. We believe such regular interface will afford us the opportunity to listen to your ideas and contributions towards making the industry as consumer friendly as possible”, he added.

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.

Finance

More Retirees Quit Pension Scheme, Collects N28.46 Billion

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Pensioners

114,837 Retirees Quit Pension Scheme, Collects N28.46 Billion

Thousands of retirees whose employers did not adequately fund their Retirement Savings Accounts and retired with balances below N550,000 have collected their contributions and quit the Contributory Pension Scheme (CPS).

A total of 114,837 employees who retired after attaining the age of 50 and had less than N550,000 in their CPS account had collected their contributions and left the scheme as of the end of June 2020.

This includes contributors from the state, federal and private sectors.

In the quarterly report released on Friday by the PenCom, these retirees withdrew a total sum of N28.46 billion since the inception of the scheme till June.

The report showed about 6,561 of the total retirees that left the program were from the Federal Government sector while 3,879 and 104,397 were from the state and private sectors, respectively.

The report also showed that some of those who collected their contributions included foreign nationals who retired and returned to their countries of origin.

A further breakdown showed as of the end of third quarter of 2019, a total of 109,284 retirees with similar low balances withdrew N27.09 billion. While by the final quarter of 2019, 2,241 retirees withdrew about N569.27 million.

In the first quarter and second quarter of 2020, about 2,227 and 1,085 retirees withdrawn N531.95 million and N274.09 million, respectively. Bringing the total from inception to N28.46 billion.

PenCom stated in its Q2 report on en-bloc payments that, “The commission granted approval for the payment of the entire RSA balances of the categories of retirees whose RSA balances were N550,000 or below and considered insufficient to procure a programmed withdrawal or annuity of a reasonable amount over an expected life span.

“Approval was also granted for payment of RSA balances to foreign nationals who decided to return to their home countries after making contributions under the CPS.

“Accordingly, the sum of N274.78m was paid to 1,085 retirees, which comprised 140 from the public sector retirees (FGN and state) and 1,085 from the private sector retirees during the second quarter.

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Finance

Central Bank to Promote Zero Balance Account Opening to Drive Financial Inclusion

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Central Bank

Banks Now Accept Zero Balance Account Opening to Deepen Financial Inclusion

In an effort to boost financial inclusion in the country, the Central Bank of Nigeria has said it would start promoting zero balance account opening to encourage and lure the unbanked into the banking system.

The apex bank disclosed this in its report titled ‘Monetary, credit, foreign trade and exchange policy guidelines for fiscal years 2020/2021’.

The report read in part, “As part of its effort towards promoting greater financial inclusion in the country, the bank shall continue to encourage banks to intensify deposit mobilisation during the 2020/2021 fiscal years.

“Accordingly, banks shall allow zero balances for opening new bank accounts and simplify their account opening processes, while adhering to Know-Your-Customer requirements.

“Banks are also encouraged to develop new products that would provide greater access to credit.”

The apex bank said the Shared Agency Network Expansion Facility, launched to deepen provision of financial services in under-served and unserved locations and drive financial inclusion through agent banking, would continue in the 2020/2021 fiscal years.

Banks, mobile money operators and super-agents would also continue to render returns in the prescribed formats and frequency to the CBN.

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Finance

Investors Oversubscribed for FGN Bonds by N205.87 Billion in October

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bonds

FG October Bonds Oversubscribed by N205.87 Billion

The Debt Management Office (DMO) has said investors oversubscribed for the Federal Government’s October bonds by N205.87 billion.

The DMO stated this after concluding the monthly FGN bonds auction on Wednesday.

Two instruments of 12.5 per cent FGN March 2035 re-opening 15-year bond and 9.8 per cent FGN July 2045 re-opening 25-year bond were auctioned.

The two bonds of N15bn each with a total auction figure of N30bn received a subscription of N235.87bn.

The 15-year tenor and 25-year tenor bonds received 99 and 67 bids but recorded 21 and 26 successful bids respectively.

The amounts allotted for each of the bids were N20bn and N25bn respectively.

According to the DMO, successful bids for the 15-year tenor bond and 25-year tenor bonds were allotted at the marginal rates of 4.97 per cent and six per cent respectively.

However, it added, the original coupon rates of 12.5 per cent for the 12.5 per cent FGN March 2035 bond and the 9.8 per cent for the 9.8 per cent FGN July 2045 bonds would be maintained.

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