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BMI puts Nigerian Insurance Premium Growth at 30%

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Business Monitor International, an organisation that provides insurance associations, regulatory bodies and professionals with independent forecasts and competitive intelligence, has stated in its recent report that most Nigerian motorists are uninsured. According to it, an optimistic interpretation of the latest developments within the insurance industry shows that Nigeria’s insurance sector has actual and potential for growth, emphasizing however that Nigeria’s insurance sector remains one of the most opaque of all those that are profiled by BMI. Notwithstanding, it added that the industry has enough data to confirm performance growth in premiums of 25% in 2008 and perhaps 30% in 2009.
The report explained that the National Insurance Commission (NAICOM) was optimistic   the Market Development and Restructuring Initiatives (MDRI) will boost growth even further. The government envisages also that insurance premiums could rise to N6000 billion (US$45bn) by 2020. In the medium term, government is looking for premiums of N1100 billion (US$8.3bn) in 2012. By way of contrast, BMI is looking for total premiums of N401billion (US$3.0bn) in that year. A central plank of the MDRI is the enforcement of compliance with the Insurance Act of 2003 and the Pension Reform Act of 2004, which identify sixteen lines of insurance that are compulsory, such as compulsory third party motor liability and building insurance. In practice, the report says, Nigeria is far from innovative insurance as insurance companies have only developed products that cater for only six lines of compulsory insurance. Further, there is massive non-compliance with the law, even among major companies and institutions.
While noting that successful insurance industries revolve around trust, it stressed that trust was absent in Nigeria insurance culture. This is clear from, for example, any discussion of the country’s motor insurance sub-segment. The report explained that most Nigerian motorists are unlicensed and uninsured with motorists carrying bogus documents to help them pass through checkpoints manned by police who are looking for uninsured drivers.
Bogus documents are also used to pursue spurious claims, which the insurers are reluctant to pay a situation that discourages properly insured drivers who regard their motor insurance premiums as a government-mandated tax. The insurers themselves often suffer liquidity problems because of slow or non-payment of premiums by insurance brokers, who are overwhelmingly the most important distribution channel (except in the life segment, where there are other problems). There is a complete lack of information concerning cars and drivers that is needed by the Federal Road Safety Commission (FRSC). This is one reason why premiums may be set too low. It also identified cut-throat price competition which prevails across the entire non-life sector.
Nigerians, the report noted, do not use life insurance to provide for their long-term income needs. Most products do not provide protection against inflation which has traditionally been a problem in Nigeria with the result that lapse rates are extremely high.
It stated that there are rules mandating majority Nigerian ownership to keep many of the insurance premiums that are paid by operators within the country’s massive energy industry. In practice, Nigeria’s 49 small insurance companies do not have the sufficient capacity, transparency or financial strength making most risks to be often insured outside the country. Unlike in most other large developing countries, multinational insurers have not seen it to be worth their while to lobby to have the rules changed so that they can re-enter the market.
The presence or absence of multinationals could be the key factor that determines whether the government comes close to realizing the hugely optimistic vision associated with the MDRI. Without the multinationals, it may even be that BMIs much less bullish but still basically positive forecasts are over optimistic.
 

 


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Uche Ikejimba Secures Sixth Consecutive AMVCA Nomination With Best Unscripted M-Net Original Nod

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Uche Ikejimba, Award-winning producer, has secured her sixth consecutive Africa Magic Viewers Choice Award nod. The organizers made the nomination announcements on Sunday, March 24, 2024, across all Africa Magic channels. It saw Ikejimba clinch a nom in the ‘Best Unscripted M-Net Original’ category for What Will People Say.

In 2022, Ikejimba received two nominations for ‘Best Africa Magic Original Drama Series’ for Unmarried and Dilemma. She secured two other nominations in 2023 in ‘Best Unscripted Original’ for Come Play Naija and ‘Best Original Drama Series’ category for Unmarried.

Speaking about her latest nomination, Ikejimba said, “I’m very humbled and beyond grateful to be receiving my sixth consecutive AMVCA nomination. Anyone who knows me will acknowledge that I often put my blood, sweat and tears into the shows I produce. After Truth won its nomination in 2020, I’ve been holding on patiently for a second win and I hope this is the year. So, here’s my hearty congratulations to my fellow nominees and a huge thank you to the AMVCAs organisers for honoring me.”

Ikejimba is one of Africa’s most-sought after serial producers, and has earned herself the title, ‘Reality TV Series Savant’, with work on 100% Naija, Vodafone Icons, Naija Sings, Calabar Festival Diaries, Big Brother Reunion, Shoot Your Shot, What Will People Say, Come Play Naija, and the more recently airing Husband Material and Overall Best.

She came into the world of Television production as an associate producer on Moments with Mo, the first and only syndicated daily talk show in Africa at the time. However, she has also proven that her talents go beyond producing reality shows or unscripted serials, and she can run with the best in producing original drama series.

In 2016, she landed her first commissioned project with Africa Magic titled Hustle. The series about a young man’s first time in Lagos became an instant hit and ran for three seasons, with 360 episodes. She created, wrote and produced Blink’s original 26-episode drama series titled Truth. The show won an AMVCA for ‘Best TV Series’ in 2020. That same year, she produced and wrote the hit series, Unmarried. The show ran for four seasons and ended on a high.

Off the success of these drama series, she produced Africa Magic’s Dilemma, a 260-episode telenovela. She produced Shallow and the recent Africa Magic fanfavourite original, Manfriend. The show follows the women of the King family and their dysfunctional relationship with the men in their lives. She also produced Showmax’s first original law limited series, AGU in 2023. Her first feature length film, Phantom is a co-production and is also nominated for several awards such as the Toronto International Nollywood Film Festival (TINFF).

Uche Ikejimba has beaten many odds to become a producer and remained steadfast in her commitment to producing the best shows Africa has ever seen. As the continent prepares for the milestone 10th AMVCA, the Reality TV Series Savant and producer extraordinaire is content to celebrate her sixth consecutive nomination. Find out if she clinches her second AMVCA win when the awards air live across all Africa Magic channels on May 11, 2024.


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Banks Close 2m Accounts over BVN, NIN, Others

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Commercial banks in Nigeria closed 2.021 million bank accounts in the first quarter of 2024, Q1’24, to clean their books of questionable accounts and comply with regulatory orders on the linkage of bank accounts to the National Identity Number (NIN).

Banks Close 2m Accounts over BVN, NIN, Others

This is contained in a report by the Nigerian Interbank Settlement System (NIBSS), which also indicated that the number of inactive bank accounts grew month-on-month, MoM, by four million or 2.0 per cent to 19.7 million in March 2024 from 19.3 million in the previous month, February.

A bank account is classified inactive when it records zero transactions including deposits, withdrawals, transfers or point-of-sale transactions for six months.

However, details of the “Industry Bank Account Database”, a monthly data reported by banks, and compiled by the Nigerian Interbank Settlement System, NIBSS, also indicated that the number of active bank accounts grew by 6.62 million or 3.0 per cent to 219.64 million from 213.02 million in February.

Recall that in December 2023, the CBN issued a directive to all commercial banks in the country to restrict tier-1 accounts without proper Biometric Verification Number (BVN), and National Identity Number, NIN, that are not linked by Thursday, March 1st, 2024.

According to NIBSS data on BVN enrollment count, 61.6 million Nigerians have BVN as of April 2024.

 

Credit: Vanguard

 

 


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Dubai-Based Citizenship Firm Imperial Citizenship Expands to Lagos, Targets Africa’s Growing Wealth

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Imperial Citizenship, a Dubai-based firm specialising in Citizenship and Residency by Investment (CRBI) solutions, has set its sights on Africa’s burgeoning wealth with the launch of a new office in Lagos, Nigeria.

This strategic move positions Imperial Citizenship to capitalise on the continent’s growing population of high net worth individuals (HNWIs) seeking international investment and mobility options.

Imperial Citizenship boasts a proven track record of success, having secured over 2,000 approvals for clients seeking alternative citizenship and residency pathways. Their partnerships with over 15 governments worldwide provide a diverse portfolio of investment opportunities that adhere to strict international regulations.

With its Lagos launch, Imperial Citizenship begins its foray into Africa. The continent boasts a burgeoning HNWI population, according to PwC, presenting a lucrative market for investment firms like Imperial Citizenship.

According to the World Bank, African economies are projected to grow by 3.4 % in 2024 as the African Development Bank Africa has reported that Africa will account for eleven of the world’s 20 fastest-growing economies in 2024. Highlighting the market’s potential, Mr. Zaid Al Hindi, Founder and CEO of Imperial Citizenship, says, “our expansion into Lagos allows us to directly cater to this affluent segment, offering them strategic solutions for global asset diversification, optimised investment opportunities, and enhanced global mobility.”

“At Imperial Citizenship, we do not operate through intermediaries, as we differentiate ourselves through direct government partnerships. This ensures transparency, legality, and efficiency throughout the application process, providing peace of mind for investment-minded clients” Zaid stated during the launch event in Lagos.

Speaking on the company’s approach to CRBI, Zaid mentioned, “At Imperial Citizenship, we prioritise a client-centric approach. We go beyond simply offering programs; we provide dedicated advisors who understand the unique needs and aspirations of each client. This personalised service ensures clients receive tailored investment options that align with their financial goals and risk tolerance”.

The launch of the Lagos office underscores Imperial Citizenship’s commitment to global expansion. With physical offices in Dubai and now Nigeria as well as operational representatives in Mexico, Algeria, and Turkey, Imperial Citizenship demonstrates its ability to cater to a geographically diverse clientele.

Looking ahead, Zaid highlighted that Imperial Citizenship plans to broaden its service offerings and expand its reach into new markets. By strategically targeting Africa’s rising wealth, Imperial Citizenship is well-positioned to solidify its role as a leading player in the CRBI industry, offering investors a gateway to global opportunities.


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