CAPITAL MARKET
CHI Microinsurance begins operations, eyes retail users
CHI Microinsurance Limited has officially commenced operation with plans to insure about 100 million uninsured grassroots dwellers in the country. A statement issued by the company said that while speaking at the official launching of the micro-insurance firm, the Group Managing Director/Chief Executive Officer, Consolidated Hallmark Insurance Plc, Mr Eddie Efekoha, disclosed that the firm would leverage on the opportunities in the grassroots to make headway. As a pioneer national micro-insurance outfit, he promised that, the new firm would partner artisans, Small and Medium Enterprises, microfinance banks, cooperative societies, trade associations, among other players, to appropriately insure risks in the micro segment of the nation’s economy. Punch
ECONOMY
750,000MT supply gap, forex shoot cooking gas above N8,000
The price of 12.5kg of Liquefied Petroleum Gas, popularly called cooking gas, which was sold for N7,000 about a week ago, has increased to between N8,000 and N8,200, amidst various concerns by marketers and producers of the commodity. Of the 1.2 million metric tonnes of the product required by Nigeria, the Nigerian LNG Limited supplies about 450,000MT. This leaves a gap of 750,000MT to be filled by imports. The Petroleum Products Pricing Regulatory Agency had said in September that out of the 85,264.80MT of LPG consumed in the country in August, 38,040.46MT were imported. This means that 55.39 per cent of the LPG consumed in the country in August was imported, while 44.61 per cent was supplied locally. Punch
Underwriters secure regulatory approval for share capital increment
Following the National Insurance Commission’s (NAICOM) proposed changes to the minimum regulatory requirement on paid-up capital for market expansion, some operators are concluding share capital increment exercise. Speaking on this, the Chief Executive Officer, AXA Mansard Insurance, Kunle Ahmed, said that paid-up capital is a form of corporate reorganisation, which involves making substantial changes to a company’s capital structure. It is one of the strategies companies use to improve their financial stability. The post-recapitalisation insurance industry is expected to be robust and capable of underwriting big risks as well as contribute meaningfully to the nation’s gross domestic product (GDP). Guardian
Nigeria-China N720bn currency swap collapses
Three years after the Central Bank of Nigeria (CBN) signed a currency swap deal with the People’s Bank of China (PBoC), Nigerians are yet to feel the impact of that arrangement, especially as the free fall of naira, currently standing at N570/$1 at the parallel market persists. In April 2018, the CBN issued the regulations for a US$2.5 billion currency swap agreement in June same year; designed to facilitate trade between the two countries and enhance foreign reserve management. But tongues have already started wagging that the N720 billion swap deal for at least 15 billion Yuan (Renminbi) (equivalent of $2.4 billion in June 2018) between the two countries has failed to achieve its purpose since it was sealed. The Sun
FG personnel cost rises by 79.48%, gulps N13.2tn in four years
The amount budgeted for personnel costs has increased from N2.29tn spent in 2019 to N4.11tn in the proposed 2022 budget, according to data obtained from the budget implementation report of the Federal Government. This shows an increase of N1.82tn or 79.48 per cent in three years, signaling a rise in the cost of recurrent expenditure. The PUNCH observed that the personnel cost has been on a steady increase since 2017. The personnel cost was N1.69tn in 2016. In 2017, it rose to N2.90tn, representing an increase of N1.21tn or 71.60 per cent. In 2018, the personnel cost rose by N7bn or 2.41 per cent, with personnel costs gulping N2.97tn. The following year, the personnel cost reduced by N68bn, dropping to N2.29tn. However, the budget rose again in 2020 to N3.05tn, representing an increase of N760bn or 33.19 per cent. Punch
