T H I S D AY • MONDAY, SEPTEMBER 3 , 2018
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Group Business Editor Obinna Chima Email: obinna.chima@thisdaylive.com 08024557078, 08091152219
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Quick Takes Oladele Appointed UAC Foods MD
UAC of Nigeria Plc recently announced the appointment of Dr. Oladele Ajayi as the Managing Director of UAC Foods Limited, a joint venture company between UACN and Tiger Brands Limited of South Africa. Ajayi holds a PhD in Mechanical & Process Engineering from the University of Strathclyde, United Kingdom and an alumnus of the Advance Management Programme of Harvard Business School In 1989, he joined Nigerian Breweries Plc as an Assistant Brewer and following several roles in technical, marketing and sales, both in Nigeria and overseas, was appointed Sales Director of Nigerian Breweries Plc. Thereafter, he was appointed Managing Director of Heineken, Hungary and later Managing Director, Central and East Africa sub-regions for Heineken International. Oladele has also served in many non-executive roles such as Chairman of Sierra Leone Brewery Ltd, Chairman of Brasserries et Limonaderies du Rwanda, External Director of Guinness Ghana Breweries Ltd and Director of Brasserrie de Bourbon, St Dennis, La Reunion. Prior to his appointment, he was the Special Adviser to the Federal Minister of Industry, Trade & Investment and NonExecutive Director of GZ Industries.
COURTESY VISIT
Azoji Becomes BVNL COO
L-R: Provost, Nigerian Defence Academy (NDA), Prof. Azubuike Nwankwo; Commandant, Nigerian Defence Academy, Maj. Gen. Adeniyi Oyebade and Executive Vice Chairman/CEO, Nigerian Communications Commission (NCC), Prof. Umar Garba Danbatta, during a courtesy visit by the NDA to the NCC in Abuja...recently
Mergers,AcquisitionsLoominInsuranceSector Obinna Chima Following the tier-based minimum solvency capital structure (TBMSC) that was introduced by the National Insurance Commission (NAICOM), analysts have predicted the adoption of mergers and acquisitions to scale the hurdle. Other corporate actions expected in the industry include rights issues; initial public offering and listing on the Nigerian Stock Exchange (NSE). Analysts at Anchoria Asset Management Limited, that stated this, based their view on the fact that a lot of insurers presently have low solvency capital or ratio. “We anticipate several corporate actions within the insurance space. Corporate actions ranging from mergers
INSURANCE & acquisitions (M&A); rights issues; initial public offer; public offers and introductions to the NSE,” the firm stated. The new NAICOM guidelines would become effective on 1st January 2019 with a stipulated deadline of 14th September 2018 for insurers to notify NAICOM on their choice of tier level. The current minimum required capital for Life Insurance Business is N2 billion, non-Life Insurance Business is N3 billion while Composite Insurance business is N5 billion. According to the report, with the introduction of tier-based minimum solvency capital, there is a shift of focus from shareholders’ fund to solvency capital as the basis for
the minimum required capital. Also, Life, Non-Life and Composite Insurance businesses now have different tiers. However, the present review does not extend to Reinsurance Companies as the minimum capital base remains N10 billion. For Life Insurance Business, the minimum solvency capital for tier 1 - N6 billion, tier 2 – N3 billion and tier 3 – N2 billion; for Non-Life Insurance Business, the minimum solvency capital for tier 1 N9billion, tier 2 – N4.5 billion and tier 3 – N3 billion; while for Composite Insurance Business, the minimum solvency capital for tier 1 - N15billion, tier 2 – N7.5billion and tier 3 – N5billion (For companies that decide to play in similar Tier of Life and Non-life insurance business i.e. Combination of
Tier 1 of Life Insurance and Tier 1 of Non-Life Insurance). According to the report by Anchoria Asset Management, the new regulation introduces four control levels based on the solvency ratio of the insurer and different actions required by the insurer and NAICOM at each level is established. In its assessment of firms likely to operate in composite insurance business segment, the report stated: “Leadway Assurance can operate within the tier 1 space as a result of its high solvency capital and a post implementation solvency margin of 282 per cent. However, despite a high shareholders’ fund of N16.6 billion for AXA Mansard which is above the proposed regulatory requirement for tier 1 Continued on page 24
FG Moves to Diversify NIPOST’s Revenue Base Nume Ekeghe The Minister of Communications, Mr. Adebayo Shittu has disclosed plan by the ffederal government to diversify revenue base of the Nigeria Postal Service (NIPOST). According to Shittu, the postal agency would soon diversify its operations into financial services, insurance, logistics real estate and eGovernment services, in a bid to enhance its revenue. The minister said this just as NIPOST launched its digital addressing system, which is expected to introduce special unique code for its customers.
ECONOMY Nigeria is the third to adopt this technology in Africa and the seventh in the world. Speaking on the plans to diversify the NIPOST’s revenue, Shittu said: “We hope to establish a NIPOST banking and insurance company so that everyone in this country would be financially included in our economic or financial situation. “We are also looking at establishing a NIPOST property and development company because in many postal facilities, you would see that NIPOST has extra land wasting away. “It is our plan as part of the
general reform to ensure that most of these lands which are currently vacant and unused are used to establish property development in general. “We are also establishing the NIPOST transport and logistics company and to add to this, is the establishment of NIPOST e-Commerce services, which will carter for e-Governance particularly with the application and delivery of driver’s licences, vehicle documents and international passports. “Also, we are looking at establishing a NIPOST egovernment services company to process licence or passport from his or local post offices.”
Speaking further on the digital addressing system that was introduced, Shittu said, “Now we can have every inch of Nigeria soil delineated digitally. The post master would therefore have the apparatus to know exactly where you are. “Going forward Nigerians would be taught how to address letters. Again, they would have numbers that would be attached to every area, and these numbers would not resemble each other. “This would assist not only vehicle registration, passport, personal identity and even Continued on page 24
Mr. Matthew Azoji has been appointed Chief Operating Officer/ Executive Director of Biovaccines Nigeria Limited (BVNL). Until his appointment, Azoji was the Managing Director/CEO of CHAN Medi-Pharm Ltd/Gte Jos, Plateau State. He is expected to lead the executive team and would be responsible for the day to day running of the business. The appointment became effective from September 1, 2018. BVNL is a joint venture between the federal government and May & Baker Nigeria Plc (MBN). It was incorporated in 2005 as the Special Purpose Vehicle to revive vaccines production activity in Nigeria. The company is owned 51 per cent by MBN and 49 per cent by the FGN. The objective BVNL is to produce safe and affordable human vaccines for Nigeria, create a regional center for vaccine production in West Africa and position Nigeria as a global player in vaccine business. Azoji graduated in 1985 with a first-class honours in Pharmacy from the Obafemi Awolowo University, Ile-Ife, and went on to obtain an MBA (Marketing), in 1999, from the Enugu State University of Science and Technology, Enugu. He was in the 2003 Advanced Management Programme (AMP) of the Lagos Business School. Azoji also holds certificates in Pharmaceutical Policy Analysis and Pharmacoeconomics from Utrecht University, The Netherlands, A WHO Collaboration Centre, as well as M.Sc. (Public Health) from the University of London, International Programmes.
Tecno Partners MTN
TECNO Mobile has gone into a partnership with MTN to introduce MPulse, which is an initiative to channel the work ethic of teenagers and create a template of optimal productivity. According to a statement, the platform was designed for youngsters between ages nine to 15, to enable them to learn and gain pragmatic skills while also having fun. The statement noted that the event which held at the Landmark Event Centre, Lagos, saw excited children brimming with eagerness as the venue was transformed into a wonderland called ‘Pulse Planet.’ It also provided the attendees lots of memorable attractions and activities. The statement also noted that the attractions included a Virtual Reality Master Class facilitated by a 13-year-old, Junior Secondary School (JSS3) student, Obaloluwa Odelana and the youngest African hyper-realism artist, Kareem Waris Olamilekan of Waspa Art, who inspired children at the event through their craft which had recently gained massive recognition through social media.
We can only get better in our determination to make the agency perform the functions for which it was set up and make it the leading maritime administration in Africa DG NIMASA, Dr. Dakuku Peterside