Notwithstanding the vast opportunities arising from insurance local content policy on oil and gas, operators have been tasked on providing a level playing field for all operators as well as blacking the leakages still going to foreigners, contrary to the provisions of the policy.
This position was canvassed by Adulphus Nwaeze, managing director of Trinity Consulting Group, while reviewing the performance of the policy so far.
According to him, “it is unethical for some operators to be discriminated against, particularly the brokers whose strategic position is crucial to the success of he policy.”
He stated that while the policy provided for at least 45percent of underwriting in the oil and gas for local insurers, only less than 10 percent is still being handled by local underwriters.
Nwaeze explained that it is unfortunate that some local companies still collude with foreigners to sell” out our rightful share under flimsy excuses.
He maintained that the preference for dollars over naira has been one of the tempting factors because foreign insurers are allegedly not enthusiastic about risks denominated in naira value.
The energy expert called on operators to develop a strategic charter and operational framework, identify leakages for necessary amendments as well as injecting a true Nigerian content opportunities into the policy.
This position had earlier been dwelt on at a forum by Mr. Wole Oshin, chairman of the Nigerian Insures Association. According to him confronting local content policy goes beyond low capacity. He said the inability of local underwriters to effectively markets themselves abroad is another challenge.
The issue of effective local content policy has engaged experts’ attention in recent times. Earlier, Mr. Val Ujumah, managing director of First Bank of Nigerian Insurance Broker (FBNIB), said government’s desire of the local content policy may not be realized unless brokers are carried along.
He stated that brokers have been sidelined in the selection of firms for the oil and gas insurance while also faulting the bidding processes for participation.
Of significance, he said, is the fact that contrary to current to practice, bidding for insurance should naturally be for brokers and not insurers.
Mr. Ujumah said what is in practice now is that the bidding processed is being controlled by one body. He explained that the National Petroleum Investment Management Services (NAPIMS) appears to be the one controlling bidding.
He pointed out that it is the brokers who should be allowed to choose the insurers to work with and not for the insurers choose the re- insurers or broker as presently happening.
The local content policy on insurance was initiated by the Obasanjo’s administration. The policy raised the level of indigenous participation in oil and gas underwriting to 45percent. The policy which started in 2006 was first put at 10percent and is expected to rise to 70percent along the line.
Experts’ opinion is that with an enlarged position reserved for local underwriters, our economic life would be boosted. The policy is also expected to boost the insurance industry which has been in limbo over a long time until recently.
The policy development is also expected to contribute substantially to the nation’s gross domestic product (GDP) which is projected to grow by more than 10percent.
CBN Pulls Rate Cut Trigger, King Dollar Returns
By Lukman Otunuga, Senior Research Analyst at FXTM,
In a move that caught investors off-guard this week, the Central Bank of Nigeria (CBN) slashed interest rates by 100 basis points bringing the MPR to 11.5%. Given how inflation has been above target since 2015, rates were expected to remain unchanged for the rest of 2020 and possibly early 2021.
The question on the mind of many is whether the rate cut will achieve the desired effect by stimulating consumption and economic growth? Ongoing border closures and disruptions created by COVID-19 have pushed inflation to levels not seen since March 2018 above 13.20% while a drop in the production and price of Oil continues to rub salt into the wound. While looser monetary policy could support growth, it may come at the cost of rising inflation and weaker Naira.
Over the past few months, central banks across the globe have deployed unprecedented measures to defend their respective economies against the coronavirus menace. However, fiscal policy has been identified as the sharper tool with governments across the world providing a critical lifeline to keep the wheels of their respective economies rolling.
Outside of Nigeria, King Dollar made a return by appreciating against every single G10 currency. In times of uncertainty, everyone wants a juicy piece of the world’s most liquid currency. As coronavirus cases rise in Europe and other parts of the world, the flight to safety is likely to boost appetite for the Dollar. This is bad news for many emerging markets currencies, especially those with high Dollar-denominated debt.
On the commodity side, Oil prices remain heavily influenced by demand-side factors and the state of the global economy. Prices are likely to remain stuck around the $40 regions in the near term, especially If another round of possible lockdowns hit Oil demand. Looking at the technicals, WTI Crude is under pressure on the daily charts. If prices are unable to break away from the sticky $40 regions, the next key point of interest remains around $38. A weekly close above $41.50 could pave a path towards $43.
NCC Arrests Man for Hacking into DSTV System
Nigeria Copyright Commission (NCC), has arrested one Mr Aliu Olalekan, for allegedly hacking into DSTV system and watching the channels free without subscription.
Mr Matthew Ojo, NCC Director in the Lagos Directorate Office said this while speaking with newsmen in Lagos, on Tuesday.
He said that the suspect used to watch DSTV channels free without subscription on his Android phone via an app which he downloaded on google play store.
“This suspect distributed the know-how to his telegram followers and on his blog with the aim of gaining more followers and viewership on his blog and makes more money through google ad-sense.
“The operation was based on surveillance which had earlier been carried out by the Multi-choice team and verified by a copyright inspector, ” he said.
He added that the arrest was made in collaboration with a team of copyright inspectors led by the Head of Enforcement Department, Mr Charles Amudipe.
Others included; a team from Multichoice Nigeria led by Mr Umar Ibrahim and policemen from Lagos Command Headquarters, Ikeja.
Ojo said that the joint team conducted an anti-piracy operation at the premises of the culprit in Amukoko, Lagos.
According to him, the suspect was contacted on phone by a member of the operation team on the disguise of patronising him. “The suspect came out to meet the caller and in the process of discussion, he was apprehended.
“The suspect took the team to his resident. The squad paraded his one-room apartment and recovered his laptop and phones used in perpetrating the ungodly act. “He was arrested and brought to the copyright commission office for further investigation, ” he said.
Ojo said that, on getting to the commission’s office, the statement of the suspect was taken and the inventory of items seized from him taken. He said that investigation on the matter was still ongoing and if found guilty the suspect will be charged to court.
NCC, Digital Encode Support NITRA Innovative Tech Forum On Post-COVID-19 Strategies
The Nigerian Communications Commission (NCC), Nigeria’s telecommunications regulator and Digital Encode, Cybersecurity and Compliance advisory company, have indicated interest to partner with the Nigeria Information Technology Reporters Association (NITRA), the national umbrella body of ICT reporters, as it organizes a forum that will x-ray the industry’s future plans for ICT growth post pandemic era.
The event, slated to hold on October 15, 2020, will seek to discuss the needs for a fortified ICT sector after the COVID-19 era, and the level of preparedness of ICT stakeholders to embrace the challenge of being pivotal to the stability and growth of all other sectors.
A statement from NITRA National Secretariat in Lagos indicates that due to the pandemic and need to observe the COVID-19 protocol on social distancing, the event will be held via a Webinar.
This year’s theme, “Multi-stakeholder Approach To National Recovery Post-Pandemic”, is in line with the annual event’s generic theme, ‘NITRA Innovative Tech Forum’, a contribution by NITRA to the development of Information and Communication Technologies (ICTs) innovations and policies in Nigeria.
Prof. Umar Danbatta, executive vice chairman, NCC is expected to deliver the keynote speech at the event and will throw more light on Federal Government’s plans, programmes and policies on post-pandemic strategies using ICT.
Dr. Adewale Obadare and Dr. Seyi Akindeinde, founders of Digital Encode, while accepting to support the event expressed their readiness to offer their expertise in Cybersecurity for organisations to prepare against cyber- attacks with the new normal.
They will also highlight areas that are high risks that need fortification in terms of cybersecurity.
Speaking on the event, Mr. Chike Onwuegbuchi, national chairman, NITRA, noted that as the COVID-19 pandemic continues to leave its negative trails across the globe, economic reboot for countries will not only depend on how well they readapt to the new normal, but also more on their recovery plans.
According to him: “While the federal government has consistently expressed its willingness to set all policies in place to engender growth, and accelerated implementation of these policies, private sector firms have also shown great hunger for the task ahead in post-COVID-19 era.
However, the question that needs to be answered is whether all stakeholders are ready for the required task ahead.”
The event will also offer participating companies opportunities to publicize some of their individual efforts at contributing to reacting a soft landing or lifeline for SMEs and other ancillary companies as the pandemic threatens their survival.
Digital Encode is a multi-award winning and leading consulting and integration firm that specializes in the design, management, and security of business-critical networks, telecommunications environments and other Information Technology (IT) infrastructures.
Verve Rewards 600 Customers in Good Life Promo
Stanbic IBTC, Standard Bank, Listed Among Top African Corporate Brands
NDPR to Safeguard Personal Data of Nigerians -DG NITDA
FG Reveals Plans to Deploy Technology in the Health Sector
Peace House Charity Foundation Seeks for DCTC Intervention
9PSB gets Approval from CBN with *990# to Commence Operations in Nigeria
EFCC Arraigns Hackers for Allegedly Stealing N900m from FCMB
Why We Hiked Pay TV Tariffs- Operators
FG Carves Out 3 Firms from NIPOST, Plans Commission for Courier Industry
Access Bank Reassures Customers after Hacker Steals Customers Data
- E-Business2 days ago
Millions of Cyber Attacks Launched on Nigeria, Others- Reports
- News2 days ago
Magu, Suspended EFCC Boss Says He Never Received Bribe all His Life
- News2 days ago
HP, AU Commission Sign MoU to Collaborate for Development of Entrepreneurial Skills in Africa
- Telecom2 days ago
ICTEL EXPO 2020: Stakeholders Urge Nigerians to Seize Opportunities Provided by Digital Economy
- E-Business2 days ago
Tech Giants Strike Deal with Advertisers over Hate Speech
- News2 days ago
“TIME 100” Lists Tony Elumelu among 100 Most Influential People in the World 2020
- Telecom2 days ago
Phase3 Moves on Multilayer Network Technology Upgrade
- Telecom2 days ago
Ten Top Tips for Getting the Most Out of YouTube Music