Economy
Governors, NAICOM to Deepen Compulsory Insurance
By Adedapo Adesanya
The Nigeria Governors’ Forum (NGF) has pledged to work with the National Insurance Commission (NAICOM) to implement and enforce compulsory insurance in all the 36 states of the federation.
This came at the beck of a courtesy visit by the management of NAICOM led by the Commissioner for Insurance, Mr Sunday Thomas, to the office of the Chairman of the forum and Governor of Ekiti State, Mr Kayode Fayemi, in Ado-Ekiti on Tuesday.
Mr Fayemi noted that the forum may invite the insurance sector regulatory agency to meet with the 36 state governors to enlighten them of its initiatives.
He noted that Ekiti State was doing its best in taking insurance seriously but added that there was room for more as all states are willing to collaborate in getting the proper services.
He said, “Be rest assured that we will work with you and we may need to invite you to meet with the 36 state governors to apprise them of your initiatives.
“We have taken note of the benefits inherent in these compulsory insurances and we are always desirous to collaborate.
“The state commissioner of finance and the Head of Service handle our insurances and will be available to work with your team,” he assured.
He then used the opportunity to advise the insurance sector to be flexible in creating new products that are more aligned with the country, considering the current state of things.
On his part, the Commissioner for Insurance used the occasion to seek collaboration with the state government in the enforcement of compulsory insurances in the state.
He noted that the financial services industry is key to the growth and sustainable development of any nation and state because of its direct impact on access to finance, a catalyst to improved income, poverty reduction and also stability in the financial system.
Mr Thomas stressed that as a subset of the industry, the insurance sector is a pivot to guarantee the sustainability of growth and development of the state and its people.
“We have therefore noted the necessity to plant insurance and people at the centre of any equation that tends to create, enhance, sustain and manage growth and development in any economy.
“As a people, human activities have associated risks and in spite of every precautionary measure to avoid the occurrence of losses or damages, the unexpected still occur.
“In consequence of the losses the victims are prone to sufferings which in many cases may lead to total impoverishment of a large proportion of those affected.
“To ameliorate the situation of victims, laws have been put in place for an arrangement that will ensure that victims and especially third parties are adequately compensated,” he said.
Mr Thomas maintained that the objectives of protecting third parties and relieving the government of the avoidable burden of compensation from the purse of the government led to the enactment of various laws on compulsory insurance products.
He explained that over the years, the commission has embarked on series of programs aimed at a nationwide massive public enlightenment with respect to compliance with the laws on compulsory insurances, he said.
The NAICOM chief recommended that the NGF Chairman nominates an agency of the government that will serve as a liaison office with the commission in the collaboration.
The nominated agency, he said, will be charged to work with the team of the state on this collaboration and recommend appropriate measure to domesticate the enforcement of the compulsory insurances in the state.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited appreciated by 0.15 per cent on Tuesday, though weak investor sentiment remained as market participants watch happenings in the global economy.
During the trading session, the banking index went up by 1.89 per cent due to buying interest and the energy industry improved by 0.04 per cent.
However, the insurance sector went down by 4.07 per cent as a result of sustained selling pressure, as the consumer goods shrank by 0.16 per cent, and the industrial goods space tumbled by 0.11 per cent, with the commodity sector closing flat.
At the close of transactions, the All-Share Index (ASI) was up by 159.86 points to 104,376.73 points from 104,216.87 points and the market capitalisation grew by N100 billion to N65.589 trillion from N65.489 trillion.
Secure Electronic Technology ended as the best-performing equity after it gained 8.89 per cent to 49 Kobo, Abbey Mortgage Bank grew by 8.35 per cent to N5.58, Sterling Holdings rose by 6.85 per cent to N5.15, VFD Group jumped by 5.26 per cent to N66.00, and Mutual Benefits improved by 4.55 per cent to 92 Kobo.
On the flip side, UH REIT finished the session as the worst-performing equity after it shed 9.95 per cent to trade at N46.15, NAHCO lost 9.94 per cent to settle at N62.95, NEM Insurance depreciated by 9.92 per cent to quote at N11.80, Lasaco Assurance dropped 9.86 per cent to sell for N1.92, and Royal Exchange slipped by 9.78 per cent to 83 Kobo.
Business Post reports that the bourse ended the day with 16 price gainers and 42 price losers, implying a negative market breadth index and weak investor sentiment.
Yesterday, Customs Street recorded the trading of 460.6 million shares worth N10.1 billion in 14,528 deals compared with the 444.1 million shares valued at N11.2 billion on Monday, representing a growth in the volume of transactions by 3.72 per cent, and a decline in the value of trades and the number of deals by 9.82 per cent and 7.41 per cent, respectively.
The busiest stock on Tuesday was Access Holdings, which exchanged 56.5 million units valued at N1.2 billion, GTCO traded 51.6 million units worth N3.4 billion, Fidelity Bank transacted 24.1 million units for N431.6 million, FCMB sold 23.4 million units worth N208.1 million, and United Capital traded 23.3 million units valued at N319.9 million.
By Adedapo Adesanya
The value of Brent crude shrank by 2.16 per cent or $1.39 to $62.82 per barrel on Tuesday as investors smell an increasing likelihood of a recession due to the escalating trade war between the United States and China, the world’s two biggest economies.
Also, the US West Texas Intermediate (WTI) crude futures went down by 1.85 per cent or $1.12 to $59.58 per barrel as the American government plans to impose a 104 per cent tariff on China from Wednesday, a White House official said.
This is an addition of 50 per cent more to tariffs after China failed to lift its retaliatory tariffs on US goods by a noon deadline on Tuesday set by President Donald Trump.
China vowed not to bow to what it called US blackmail after President Trump threatened the additional 50 per cent tariff on Chinese goods if the country did not lift its 34 per cent retaliatory tariff.
China’s Commerce Ministry said the country would fight to the end, boosting fears about a contraction of the global economy and likely recession.
Meanwhile, the US Trade Representative said that China has not indicated it wants to work toward trade reciprocity.
The European Union, too, is readying a full spectrum of countermeasures, including potentially taxing Silicon Valley giants.
Other major American trading partners are exacting pressure in other ways as Canada matched US auto tariffs and launched an advertising campaign across the border against President Trump’s trade policy.
This has led analysts to reduce their price forecasts with Goldman Sachs forecasting that Brent and WTI crude prices would be at $62 and $58 a barrel, respectively, by December 2025, and at $55 and $51, respectively, a year after that, under different scenarios.
Meanwhile, US crude and distillate inventories fell while gasoline (petrol) stocks rose last week, according to the American Petroleum Institute (API) figures on Tuesday.
Crude stocks fell by 1.1 million barrels in the week ended April 4, gasoline inventories rose by 210,000 barrels and distillate stocks fell by 1.8 million barrels, the API said.
Official weekly oil inventory data from the US Energy Information Administration (EIA) is due later on Wednesday.
By Adedapo Adesanya
The United States has lamented Nigeria’s import ban on 25 different products, particularly in agriculture, pharmaceuticals, beverages, and consumer goods, as it rationalised the recent decision to slap a 14 per cent retaliatory tariff.
The United States Trade Representative, in a statement on Monday posted on its X platform, said Nigeria’s restrictions on items like beef, pork, poultry, fruit juices, medicaments, and spirits limit US market access and reduce export opportunities.
“These policies create significant trade barriers that lead to lost revenue for US businesses looking to expand in the Nigerian market,” it wrote.
Last week, the administration of President Donald Trump imposed various tariffs ranging between 10 per cent and 65 per cent on different countries across the world, including Nigeria which got a 14 per cent tariff on its exports to the US.
In response, the Nigerian Minister of Trade, Industry, and Investment, Mrs Jumoke Oduwole, said Nigeria would take a pragmatic approach and will boost non-oil exports to deal with the drawbacks from the US move.
She also said Nigeria will be willing to negotiate and will be speaking with the World Trade Organisation (WTO) on the way forward.
On his part, the Minister of Finance, Mr Wale Edun, said that the Economic Management Team (EMT) would meet to assess the likely impact of the 14 per cent tariff on goods exported from Nigeria to the US.
He said the EMT will afterwards, make recommendations to cushion its impact on the nation’s economy.
The Minister also said the federal government will boost non-revenue as a means of cushioning the adverse effects to trade tariffs imposed on countries by President Trump.
Mr Edun also assured that while the adverse effect on Nigeria will be through an oil price plunge, the government is intensifying efforts to ramp up oil production and boost non-oil revenues.
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN