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NAICOM Issues Fresh Annuity Rules to Insurance Firms

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The National Insurance Commission has issued fresh regulations on annuity business with effect from February 1, 2025, in a bid to sanitise that segment of the market.

An annuity is a contract between you and an insurance company that requires the insurer to make payments to you, either immediately or in the future. You get a fixed amount of money for the rest of your life in return for a lump sum payment or a series of instalments.

In a statement over the weekend, NAICOM released circular outlining additional regulatory requirements for life insurance companies carrying on annuity business in Nigeria.

The circular, dated January 29, 2025, signed by Director (Innovation & Regulation) A.I. Adamu, issued to Managing Directors/CEOs of all life insurance companies, aims to enshrine best practices in the management of annuity portfolios by insurance institutions.

The new rules mandate that insurance companies are required to have at least one qualified actuary responsible for assets-liability matching analysis and implementation of its adoption by the investment team of the company.

A part of the guidelines read, “An insurer that does not have an in-house qualified actuary shall make arrangements for a qualified one from an external actuarial firm to take on the ALM responsibility on its behalf for an interim period of no more than two years, subject to the Commission’s approval for an extension for two or more years thereafter.

“The appointment of an in-house or external qualified actuary, who shall sign off all ALM reports as required by the provisions of paragraphs 3.4.3, 7.3.1, and 8.1.5(m) of the Prudential Guidelines, shall be subject to the prior approval of the commission.

ALM Reports: Companies are required to submit ALM reports to the commission quarterly, with requirements outlined in the circular such as required actions by insurers depending on the results from specific analysis applying guidance provided in the NAS Standards of Actuarial Practice.”

NAICOM said that insurance companies are required to comply with the new requirements, with the board of directors responsible for ensuring strict compliance.

Also, the regulator said that companies that are unable to cover the additional expenses imposed by the circular are required to transfer their annuity portfolio to another suitable insurance company within 180 days.

On the mandated ALM reports, the new guidelines read, “The ALM report shall be submitted to the Commission not later than 15 days after the end of every quarter in line with the reporting requirement stipulated in paragraph 3.4.3 of the Prudential Guidelines.

“Without prejudice to paragraph seven of this circular, where the annuity portfolio of an insurance company has more than 1,000 (one thousand) annuitants or the portfolio is valued at N5bn or more, the company shall submit to the commission the prescribed ALM report monthly, not later than the 15th of the succeeding month.”


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NBRDA Investigates Biocatalysts for Bioethanol Production

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National Biotechnology Research and Development Agency (NBRDA) is investigating the development of biocatalysts from underutilised bioresources through its Young Researchers Forum (YRF) research group for bioethanol production.

NBRDA Investigates Biocatalysts for Bioethanol Production

Prof. Abdullahi Mustapha, director general, NBRDA sated this in an interview conducted in Abuja on Wednesday

Biocatalysts, which can be either bacteria or enzymes, are biological entities that accelerate chemical reactions.

An alcohol-based fuel derived from renewable resources such as plants and algae is called bioethanol. It can be blended with petrol or used in place of it to cut down on petroleum use.

He asserted that bioethanol is crucial and that Nigeria has the means to fully investigate its possibilities, noting that the production of bioethanol will be helpful in setting up bioethanol plants.

“However, the catalyst for the fermentation of sugar to produce ethanol is what we are after, and we have it locally.

“When we isolate the biocatalyst, it is going to be useful in helping to establish a bioethanol factory, which will function very well due to our varying weather conditions,’’ he said.

Bioethanol has similar uses to fuels used to generate other classes of energy like heat, motor power, transportation, and electricity, the NBRDA chief added.

According to him, bioethanol is the most widely used biofuel in modern civilisation, and the process of turning biomass into bioethanol is receiving a lot of attention.

“Biological energies are renewable fuels with minimal pollution and play an important role in reducing greenhouse gas pollution, and one of them is bioethanol, which is obtained from fermentation operations.

“The world’s attention to the use of bioethanol as an energy source is focused on reducing the cost of production and increasing the efficiency of the ethanol industry.

“By consuming ethanol fuel instead of fossil fuels, the amount of greenhouse gas emissions known to be the cause of global warming will be somehow reduced,’’ Mustapha said.

According to the D-G, the creation of the Young Researchers Forum (YRF) demonstrates the agency’s efforts to support nation-building.

He added that young biotech innovators chosen from across the agency’s departments will use the conference as a training ground and launching pad.

The YRF, according to Mustapha, was a manifestation of his wish to establish an institutional framework for mentoring that would close generational divides.

He stated that one of the projects the YRF would concentrate on was the development of biocatalysts for the manufacture of bioethanol.


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NDLEA Says 14m Nigerians Affected by Consumption of Harmful Drugs

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National Drug Law Enforcement Agency (NDLEA), said no fewer than 14 million Nigerians are estimated to be involved in and addicted to the consumption of harmful drugs.

NDLEA Says 14m Nigerians Affected by Consumption of Harmful Drugs

Mrs Yetunde Joyifous, deputy commander, Ondo State Command of NDLEA, made the disclosure at a drug abuse awareness programme organised by Oijefon Youth for secondary schools in Ile Oluji/Oke-Igbo Local Government Area of the state on Wednesday.

Joyifous said that the drugs consumed were mostly chemical substances capable of negatively altering the minds of users.

According to her, the only way to curb the menace is to engage all stakeholders in the community and encourage them to partner with the authorities in the fight against the dangerous trade.

“I want to thank the Oijefon Youth Council for partnering with the NDLEA in the fight against drug abuse in society,” she noted.

She described younger people, especially those at the secondary school level, as the most vulnerable victims of drug abuse, adding that efforts must be intensified to rescue them from involvement.

In his welcome address, Adedokun Adeyonu, president, Oijefon Youth Council, said the council organised the sensitisation programme to discourage youths from drug abuse.

“Drug abuse means using harmful substances like alcohol, tobacco, or illegal drugs in a way that harms the body and mind,” he noted.

He explained that many people use drugs out of curiosity, peer pressure, or in an attempt to overcome problems in their lives, believing it to be the only solution.

Adeyonu also identified peer influence, as well as exposure to certain films and music, as factors that push youths into drug abuse.

He urged members of society to help create a prosperous future for the younger generation.

 

 

 

 

 

 

 


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IFC Partners Mohinani Group to Drive Plastic Recycling and Manufacturing in Nigeria, Ghana

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IFC has announced a partnership with Ghana-based manufacturer Mohinani Group Limited to under-take the recycling of Polyethylene Terephthalate (PET) from plastic waste in Ghana and Nigeria, helping protect the environment and creating thousands of jobs in both countries.

Under the partnership, IFC will provide a loan of $37 million to help Mohinani Group subsidiaries Polytank Ghana Limited and Sonnex Packaging Nigeria Limited to establish PET recycling plants in Ghana and Nigeria. Each plant will have the capacity to produce 15,000 tons of recycled PET (rPET) resins annually that will substitute virgin PET resins used to make food grade and beverage packaging containers.

90 percent of the raw materials will be sourced from local small businesses involved in plastic collection. Combined, the new plants are expected to create more than 4,000 direct and indirect jobs across the value chain and approximately US$21 million in annual savings from imports for each country.

PET is a polymer resin of the polyester family, widely used for making containers for liquids and foods. Using recycled plastic waste for production will prevent harmful pollutants from being released into the environment and reduce the need for virgin plastics. This will lower greenhouse gas emissions because recycled plastics have a smaller energy footprint than new plastics.

“The rPET project by the Mohinani Group was born out of a vision to close the bottle-to-bottle recycling loop in Africa and the Group’s dedication to advancing environmental sustainability,” said Roshan Mohinani, Strategy and Transformation Manager for Mohinani.

“It is also inspired by our Group’s purpose of improving the quality of lives in Africa, as this initiative is expected to create over 4,000 jobs along the value chain in Nigeria and Ghana, thereby providing economic empowerment to a significant number of young people, particularly women.”

“IFC’s partnership with Mohinani underscores our dedication to promote environmental sustainability and economic development in Ghana and Nigeria,” said Dahlia Khalifa, IFC Regional Director for Central Africa and Anglophone West Africa. “By recycling up to 30,000 tons of PET waste annually, these new plants will protect the environment and substitute imports with locally recycled materials.”

IFC will also provide advisory services to strengthen Mohinani’s environmental and social practices and its capacity for efficient and sustainable PET recycling operations.

The project aligns with IFC’s strategies for Ghana and Nigeria which are focused on mitigating climate change, job creation, and economic transformation. It is also consistent with the World Bank Group’s Climate Change Action Plan 2021-2025, which aims to reduce the use of virgin plastic resins and greenhouse gas emissions in the packaging materials value chain.


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