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Insurance sector may lose 72% of Dangote refinery’s risk | The Guardian Nigeria News – Nigeria and World News



Dangote Oil Refinery Company

The nation’s insurance industry may lose 72 per cent of the insurance business in the Dangote Oil Refining company.

The company, which has insured value estimated at $6.8 billion, may be overtaken by foreign operators, when it becomes operational as result of low financial capability to underwrite bigger risk in the Nigerian market.

In addition, they might lose another $8 billion energy insurance business from energy companies to foreign insurers due to their current low capital base and lack of underwriting technical capacity.

The National Insurance Commission (NAICOM), which made the observations at the weekend at Ije-Ode, Ogun State, justified reasons for its determination to prosecute the ongoing recapitalisation of insurance companies.

NAICOM’s Director, Policy and Regulation, Pius Agboola, said the ongoing recapitalisation is to position the sector to independently handle big-ticket transactions in Nigeria as well as to end capital flight and support economic development of the country.

Agboola, explained that the reasons for the ongoing recapitalisation in the industry, said insurance had continued to lose substantial part of the income that was supposed to grow the industry to foreign counterparts due to low capital base.

He added that among the quantum of businesses currently approved-in -principle by the regulator to be taken abroad were aviation refueling liability insurance from II Plc (former Mobil Oil Nigeria Plc) with the sum insured valued at $1,000,000,000.

He expressed regret that of the above stated amount, the local insurers had the capacity to insure only 10.03 per cent, while 89.97 per cent would be ceded to foreign insurers from mainly European and American markets.

According to him, similarly, the sector is losing another risk valued at $7,010,970, being the sum insured on Third Party Nuclear Liability Insurance from Centre for Energy Research and Training (CERT) in which indigenous insurers have capacity to insure only 0.05 per cent of the entire business, while 99.95 per cent would be taken abroad.

This is in addition to other four major high-ticket businesses in which the sector is losing over 50 per cent of the sum insured to foreign insurers as a result of low capital base and lack of technical underwriting capacity.

Agboola said the Combined Property Damage/Machinery Breakdown/Liability Terrorism/Political Violence Risk, belonging to Sahara Power (Egbin Power Plc), with the sum insured valued of $3.1 billion would have 53 per cent insured abroad, while 46.295 per cent would be insured locally.

He, however, said the Nigerian National Petroleum Corporation (NNPC) retained 78 per cent of its Consolidated Insurance package risk valued at N99,585,532,592 as sum insured with local insurers, while 22 per cent was taken abroad.

Also, Chevron Nigeria Limited insures 75 per cent of its Energy Package Risk valued at N14.311billion with indigenous insurers while 25 per cent is taken abroad; just as Mobil Producing Nigeria Limited insures 70 per cent of its Energy package/physical damage and O.E.E valued at $14.098 billion with local insurers while 30 per cent is taken abroad.

Agboola also said Lafarge Hoicim insured 68.73 per cent of combined property damage/business interruption and public liability, valued at $564,882,644,410, as sum insured with local insurers while 31.27 percent was taken abroad while Dangote Fertiliser insured 60 per cent of its Construction/Erection All Risk and third party liability risk valued at $1.128 billion with local underwriters.

Considering the quantum of risks ceded abroad due mainly to low capital, the Acting Commissioner for Insurance, Sunday Thomas, said the commission would, “prosecute as never before, the recapitalisation process of insurance companies to ensure that the sector is positioned to support economic development of the country.”

He said even though operators might not have the wherewithal for the recapitalisation of their respective companies, the onus was on the regulator to set the standards that would strengthen the insurance companies’ capacities and place them in a position to undertake insurance businesses.

Giving more insight into the need for the recapitalisation, Thomas, said: “The process is to enable the sector to retain insurance businesses instead of allowing it to go outside the country; turn the image of the insurance market, strengthen financial base of the companies, increase the sector’s contributions to gross domestic product of the country, among other benefits.

“We have the mandate to ensure that the recapitalisation throws up more solid companies. Our hands are open to welcome investors in new companies or existing companies.”

He enumerated the benefits of the recapitalisation to include the need for capital restructuring and improvement in the liquidity position of the insurance underwriters.

According to him, the insurance industry’s life cycle is still at an early growth stage, which needed to be explored.

NAICOM recently fixed August 20, 2019 as deadline for operators to submit their recapitalisation plans.

Also, firms that have decided to adopt mergers and acquisition strategy were directed to perfect such deals 60 days to the recapitalisation deadline.


Gov AbdulRazaq urges youths to shun drug abuse, other vices



Gov AbdulRahman AbdulRazaq of Kwara has called on Nigerian youths to shun drug abuse and other vices that could hinder them from realising their lifetime ambitions.

AbdulRazaq made the call on Wednesday when he received members of the state chapter of Scouts’ Association of Nigeria (SAN), led by its Commissioner, Deacon Olabisi Afolayinka, at the Government House, Ilorin.

The governor, who recalled, with nostalgia, his days as a scout boy in Capital School, Kaduna, said that the organisation had contributed immensely to nurturing youths to become good citizens and contribute to the development of the country.

“This is an association that prepares youths on how to be good citizens and how to relate with their fellow countrymen.

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“These are virtues that the youth of today should maintain. In our own days as youths, there were no rampant cases of drug abuse,” he said.


The governor urged the youth to use their energy for productive ventures and join the organisation to make positive contributions to society.

AbdulRazaq, who was made the organisation’s Ambassador of Peace, promised to live up to expectations by giving necessary support to the body through relevant government agencies.

Earlier in his remarks, Afolayanka said that the constitution of the body automatically made the governor of any state its patron and the president grand patron.

He commended AbdulRazaq for the audience granted the association, saying that this was the first time any governor would be hosting them in the state in the last 21 years.

Afolayanka said that the association was founded to build young boys and girls to make useful contributions to the country.

The SAN commissioner noted that cultism and other vices were not rampant in schools in the past when the scouts held sway.

He urged the governor to continue to support the association for effective discharge of its responsibilities in the state.

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NYSC: Bwari assures Corp members improved welfare



The Chairman of Bwari Area Council, Mr John Gabaya has assured members of the National Youth Service Corps (NYSC) of his administration’s readiness to improve on their welfare.

Gabaya gave the assurance when representatives of the FCT NYSC Secretariat, and some members of the NYSC 2019 Batch B’, paid him a courtesy visit on Wednesday in Abuja.

Gabaya, who appreciated the team for the gesture, said that it was the duty of the council, as host of the NYSC Orientation Camp in the city to ensure it gave the Corps maximum support.

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He acknowledged the fact that the camp in Kubwa, was faced with infrastructure challenges, adding that efforts would be made to amendments it and bring succour to the corps members.


“The council, in its capacity, alongside the management of the scheme, would meet and discuss how it would make the development feasible including our best effort to add a little raise to their allowance,” Gabaya said.

Earlier, the NYSC FCT Coordinator, Mrs Waleeda Isa, said the visit was to acquaint its officials with the new administration of the council as host of the orientation camp.

Isa decried the sorry state of infrastructure at the NYSC camp, saying “their lodge in the camp is dilapidated and needs attention”.

“Also, it would go a long way for those who serve under the council, if your administration can kindly add a little to their allowance to augment what the Federal Government is giving them.

“We will be honoured if you make these efforts so that we feel your presence and know that you have us at heart,” she said.

The News Agency of Nigeria (NAN) reports that the NYSC 2019 Batch B’ corp members have reported and would be inaugurated at the orientation camp on Aug. 22.

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Lagos govt boosts MCC services in Eti-Osa Tribune Online



THE Lagos State Government says it has completed yet another Maternal and Childcare Centre (MCC) located in Eti-Osa Local Government Area of the state to increase residents’ access to qualitative maternal and child healthcare.

The state Commissioner of Health, Prof. Akin Abayomi, made this known on Wednesday in Lagos during an advocacy meeting with community leaders and residents of Badore.

Abayomi was represented by the Director of Projects, Ministry of Health, Dr Olusola Oduwole.

He said that the continuous implementation of strategic maternal child survival interventions, policies, programmes and projects by the government was geared toward the reduction of maternal and child mortality in the state.

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According to him, the local and national statistics of maternal and child mortality and morbidity rate are of utmost concern to the government hence, the adoption of various strategies to combat it.

“One of these strategies is the construction of MCC, a specialised healthcare centre for mothers and children.

“It is aimed at taking maternal and child healthcare closer to the people by reducing the travel time and improving the quality care to the highest possible standard,” the commissioner said.


Abayomi said that the MCC was located on Ogombo Road along Abraham Adesanya Estate in Eti-Osa local government area.

According to him, the facility is a four-floored 110-bed complex designed to respond to maternal and child health issues.

“It will provide quality services for the restoration, improvement and promotion of the health and well-being of women, babies and children in the local government area and adjoining communities.

“It has two theatres where surgeries can be done; consulting rooms; treatment rooms, antenatal and postnatal wards; baby nursery; pharmacy, laboratory and offices, among others,” he said.

Abayomi said that the construction of MCCs in the state was designed to stem the tide of maternal deaths which occurred as a result of delivery by unskilled birth attendants, haemorrhage, infection, obstructed labour and malaria, among others.

He said that women should not die in the course of life procreation process.

“The concept of the construction of MCCs was mooted with the conviction that these interventions will impact positively on the health indices of our mothers and children who constitute a significant percentage of clients attended to at public health facilities.

“The Eti-Osa MCC will commence operation before the end of the week and will serve as a referral centre to all primary health facilities in Eti-Osa local government and accompanying communities.

“It will yield the much desired and anticipated impact towards the reduction of maternal and child mortality in the area,” the commissioner said.

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Psychiatric resident doctors vow to continue strike %



THE Association of Resident Doctors, Federal Neuro-Psychiatric Hospital, Yaba, has resolved to continue its ongoing indefinite strike demanding for optimal mental healthcare for patients.

The President of the association, Dr Afeez Enifeni, said in a statement on Wednesday, in Lagos, that the strike would continue until the management addressed the work experience of the overworked doctors.

Enifeni said that the doctors had on Aug. 19 held a meeting to review the current industrial action.

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The doctors accused the hospital management of being insensitive to the plight of the in and outpatients, who according to him, are receiving suboptimal mental health services.


“The hospital management has blatantly refused to replace the annual exit of resident doctors for the past four years.

“Instead, they have let patient load and clinical work increase significantly for hapless resident doctors whose health and academic pursuits have suffered irreparably.

“In light of the above, the management’s insistence on employing only five locum doctors is highly provocative of our demands.

“It hardly improves the status quo which already puts overworked resident doctors at the brink of academic failure, health challenges and malpractice suits,” he said.

He urged President Muhammadu Buhari to prevail on the hospital’s management to do the needful in line with the administration’s next level agenda.

The News Agency of Nigeria (NAN) recalls that the resident doctors had embarked on an indefinite strike on July 31 over non-employment of more resident doctors at the hospital.

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AIDS: Society says self-stigma more destructive than HIV/AIDS



THE Coalition of Civil Society Network on HIV/AIDS in Nigeria (COCSNHAN) on Wednesday said that self-stigma was more destructive to people living with HIV than the disease.

Mr Ikenna Nwakamma, first Co-chairman of the society, told the News Agency of Nigeria (NAN) in Abuja that it was the major reason people living with HIV default from treatments.

Nwakamma, who called for the incorporation of mental health services in the national HIV programme, said it was imperative to rescue patients from the dangers of self-stigma.

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“Very important, the issues of self-stigma is hardly talked about and that is even more destructive; it is the major reason people living with HIV default in their treatment,” he said.

The society’s co-chairman explained that mental health would make people living with HIV become co-managers of their health.

According to him, mental health problems among people living with HIV is the new epidemic and we must deal with it squarely.

Nwakamma restated the plans of the society to set up a monitoring system that would capture and report cases of stigma and discrimination in health facilities.

He promised that any identified case would be used to send a strong warning to others.

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