BUSINESS
Motor Insurance Service Loses N160bn to Fraudsters.
By Joseph Amah, Abuja
Data from the Nigerian Insurers Association (NIA), show that 71.7 per cent of vehicles registered in Nigeria do not have adequate insurance cover. According to stakeholders, the insurance policy premium of these vehicles on the road without genuine insurance is a whopping N160 billion per annum.
According to the NIA, of the 12 million vehicles registered in the country, only 3. 4 million have insurance cover as captured in the Nigerian Insurance Industry Database (NIID). This means that 8.6 million of the vehicles do not have genuine auto insurance covers.Analysis of financial results of the first seven insurance companies that have released 2021 full year report shows that their combined auto insurance premium income increased by 19.
9 per cent in 2021 to N21.1 billion from N17.6 billion in 2020.The figure had increased by 4.8 per cent to N17.6 billion in 2020 from N16.8 billion in 2019.The companies are Consolidated Hallmark, Coronation Insurance, Lasaco Assurance, Linkage Assurance, Nem Insurance, Sovereign Trusts Insurance, as well as Axa Mansard. Chairman of NIA, Mr. Ganiyu Musa, said, as at the end of January, 2022, the 3.4 million vehicles were those whose insurance policies were still up to date. Also speaking, President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Barrister Rotimi Edu, who gave the figure of N160 billion as lost annually to fake motor insurance racketeers in the country, noted that it is disheartening that an industry which had been contributing less than one per cent to the Gross Domestic Product, GDP, in spite of its huge potentials, loses such amount to fake vendors who contribute nothing to the growth of the nation.He stated: “Nigeria insurance industry loses over N160 billion yearly to fake motor insurance vendors. Some of these fake operators have their offices in some local government secretariats across the nation, carrying out their unethical acts unabated.“Aside from loss of revenue and premium that should accrue to the industry, these criminals create for us a bad image. Most of the unattended claims in motor insurance are victims of fake certificates.“It is sad to note that most motorists go about their daily businesses with certificate of moribund and deformed insurance companies, just because there is no proper enforcement. Some of these insurance policies flying around local government premises across the country, are just putting money into people’s pocket.“I am certainly aware that the NIA deployed technology to curb proliferation of fake certificates. But I am of the opinion that enforcement is still at low ebb.”On the way forward, the NIA Chairman, Musa, noted that to ensure compliance becomes effective across the country, the NIA is working with the Lagos State government in the enforcement and validation of genuine compulsory third-party insurance made mandatory by law through Automatic Number Plate Recognition (ANPR) device of Vehicle Inspection Service (VIS) through NIID Verification Platform. Musa said the partnership with Lagos State will be replicated in other parts of the country so that people can be sure that what they have and carry as insurance is only from genuine and registered insurance companies.He stated: “Now, if your policy document is not captured in the NIID, then that policy document you have as a motor third-party insurance certificate is fake and worth nothing.“You can actually verify it yourself, right from anywhere you are. This has not only brought a check to fake documents, but it has also now empowered you to make claims on all third-party liabilities.“Verifying the authenticity of your vehicle insurance policy on the NIID gives you peace of mind and assurance that your claim will be paid.” Also speaking on the way forward, NCRIB President, Edu called on government at all levels to wade into the situation and curb the perpetrators of fake motor policies.He said: “Our economy continues to drag because we are not paying attention to the issue of insurance. I plead with government at all levels to wade into this matter. I equally plead with the VIS to see this as a clarion call.
The agency can as well increase its enforcement strategies to include insurance certificate in such a way that any motorist without genuine motor insurance certificate should be made to face sanctions as stipulated in the law.”Meanwhile, Commissioner for insurance, Mr. Sunday Thomas, charged insurance industry players to increase awareness and educate Nigerians on, majorly, the six compulsory insurances, which include, third party motor insurance. According to him, proper awareness on the features and importance of these insurance policies will deepen insurance penetration and drive up the revenue of the Nigerian insurance industry.
By Tony Obiechina, Abuja
The Commissioner for Insurance/CEO, Mr. Olusegun Ayo Omosehin, and his management team have met with the members of the Constitutional Committee on “Mobilisation and Diversification” of the Revenue Mobilisation Allocation and Fiscal Commission ( RMAFC) led by Engr.
During their working visit to NAICOM Headquarters, Mr. Olusegun Ayo Omosehin, in his opening remarks, reaffirmed the critical role of the insurance sector regulator in supervising, regulating, and safeguarding the interests of insurance policyholders.
He highlighted insurance’s pivotal role in mobilising savings for long-term developmental projects and enabling businesses to thrive while managing risks effectively.
He also stressed the Commission’s commitment to ensuring insurance companies meet their obligations, thus contributing to the sustainability of the economy.
Speaking, Mohammed Baba emphasised the importance of revenue generation, institutional expansion, and employment creation for Nigerians through collaborative efforts.
The Commissioner for Insurance also acknowledged President Bola Ahmed Tinubu’s ambitious goal of growing the Nigerian economy to One Trillion United States Dollars ($1 trillion) by 2026.
He expressed the insurance sector’s intent to significantly contribute to this objective. Additionally, he mentioned ongoing efforts to embed insurance within the National Credit Scheme to ensure its sustainability.
Mr. Omosehin stressed the need for continuous advocacy and sensitization of government institutions about the vital role of insurance in national economic development.
From Joseph Amedu, Lokoja
No fewer than 22,000 beneficiaries in Kogi will get N50,000 each, under the Presidential Conditional Grant Scheme (PCGS) to boost Micro, Small and Medium Enterprises (MSMEs) in the state
The Managing Director and Chief Executive Officer (MD/CEO) of Kogi Enterprise Development Agency (KEDA), Hon.
Okeji said the PCGS was being implemented by the Federal Ministry of Industry, Trade and Investment through the Bank of Industry (BOI) in partnership with the Kogi Government in line with the Renewed Hope Agenda of President Bola Tinubu.
He noted that the PCGS enrollment for beneficiaries of Nano businesses was flagged by Kogi Government simultaneously on Wednesday across the three senatorial districts in Okene, Ankpa and Kabba respectively.
He disclosed that over 22,000 beneficiaries across the 21 local government areas of Kogi would receive N50,000 each as grant to boost their nano businesses and improve sustainability.
According to him, about 1070 beneficiaries would get the grant from each of the 21 local government areas across the state.
“The PCGS is aimed at ameliorating the harrowing effects of the fuel subsidy removal, to provide a one-off grant of N50,000 to over 22,000 Nano business owners across Kogi State.
“We are grateful to Mr President for the impactful initiative at a time of stiff economic challenges for both businesses and the generality of Nigerian citizens.
“Mr President’s gesture is a sensitive step towards safeguarding the small business ecosystem which is the lifewire of the nation’s economy,” he said.
Okeji expressed gratitude to Gov. Ahmed Ododo for keying into the initiative and providing the adequate resources required to draw down the benefits to thousands of Kogi Nano businesses.
This, he said the governor was fulfilling his determination to strengthen the MSMEs which remained the backbone of the nation’s economy.
He added: “We thank our governor for swinging into action to provide the needed resources to complement the effort of the federal government in flagging off the scheme across Kogi.
“As we embark on this journey of empowering our Nano businesses today, let me remind you that you are the backbone of our economy.
“As such, the government of our dear Gov. Ahmed Ododo is determined to provide all the support that will boost your capacity and survival. We will not let you fail”, Okeji assured.
In his remarks, the Ohinoyi of Ebiraland, HRM Alh. Ahmed Tijani-Anaje, commended President Tinubu for the timely initiative, and eulogised the governor for ensuring that a larger number of Kogi citizens benefited from the scheme.
Our Correspondent reports that Okeji subsequently went round the state to monitor the enrollment exercise in Kabba and Lokoja.
Okeji further said that the enrollment exercise which was being conducted by officials of BoI, was expected to continue till Friday, while disbursement follows immediately.
One of the beneficiaries, Oyiza Bajeh from Adavi, thanked the President for the gesture, and appreciated the Governor for deeming it fit to bring the program to the grassroots.
“When I received a text message from BOI to come for data capture, I dismissed it as one of those scams. But upon a second thought, I decided to give it a tryer.
“Surprisingly, I met a huge crowd of market women, youth and even people with disabilities gathered here at the Ohinoyi palace for the exercise.
“We are very grateful to President Tinubu and Governor Ododo for the gesture,” Bajeh said.
By Ubong Ukpong, Abuja
The Accountant General of the Federation, Mrs Oluwatoyin Madein on Wednesday said total revenue inflows to the Federal Government in the first quarter of 2024 amounted to N318.5 billion.
She disclosed this in a hearing by the House of Representatives Committee on Finance to monitor the revenue by agencies of the Federal Government.
Represented by the Director, Revenue Expenses, Felix Ogundayero, she said this was against a total expected revenue of N2. 591 trillion for the year 2024.
She added that a reconciliation of the figures was still ongoing and what was declared is what is available at the moment.
Madein expressed confidence that it would be an exceptional year in terms of revenue for the country based on the policies of the present administration.
She said the bottom up cash planning policy would be adopted in implementing the 2024 budget.
She said, “Reconciliation is still being done but the total revenue inflows to the federal government for January to March amounts to N318. 5 billion as against a total budget of 2.691 trillion.
“For the budget, the bottom up cash planning policy is on course and the 2024 budget is going to be implemented via that policy and officers have been retained and sensitization is ongoing to ensure that MDAs are well equipped on the modalities and conditionalities,” he said.
Chairman of the Committee, Hon James Faleke, said the essence of the sitting was in line with their duty as a parliament to oversee to ensure that the revenue estimates which were submitted by each agency before the 2024 appropriation bill was passed into law are met.
He said, “We have to ensure that those estimates are met. The Appropriation has become a law and so that revenue that you proposed to generate in the year we take it upon ourselves to do it on a quarterly basis to measure your performance.
“We want to ensure that revenue activities from January to March are in line with your appropriation. When you are giving us your figure, you tell us what the figure was expected for the generation and what you have achieved. Also tell us your expenditure,” Faleke said.
Chief Executive Officer of the Ministry of Finance Incorporated (MOFI), Dr Armstrong Takang, also disclosed that so far N101 billion have been declared as dividends by some agencies under it.
He said the report presented was not comprehensive as some agencies were yet to declare their dividends due to various factors.
He said, “So far we have received dividends declared by some companies. But for many others their reports are either being prepared and have not been completed or have been completed but they have not gone to their boards for approval and subsequently the AGM and as such we cannot use the number of their dividends until that has been done based on the corporate governance rules.
“Based on the number so far, it’s about N101 billion from the entities we have identified. We continue with other entities whose dividends have not been paid to ensure we go through the process of them passing it at the board level and the AGM before the figures are sent to us and the money rendered to the treasury.”
The Chairman of the Committee, Faleke, directed that all the agencies under MOFI should produce their annual report for the past 10 years.
“All organisations under MOFI should produce their annual report for the past 10 years and the dividend that ought to have been paid, what ought to have been paid, and what was paid by each of the agencies, and of course evidence of payments,” Faleke said.
The House also berated the Nigerian Agricultural Insurance Corporation for performing far below expectations.
The Corporation, represented by Dr Philip Ashunze, had said out of a total expected revenue of N10 billion, it had only generated N70 million so far.
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