NDIC Begins Payment of N16.18bn Liquidation Dividends To Depositors Of Failed Banks

Mohammed Shosanya

The Nigeria Deposit Insurance Corporation (NDIC) has announced declaration of N16.18 billion liquidation dividends to depositors, creditors and shareholders of 20 banks in-liquidation.

A statement signed by Bashir Nuhu, Director, Communication and Public Affairs,saud the Corporation has commenced verification and payment of stakeholders covered by the declarations within 30 days, starting from 28th September 2023.

The ongoing payment follows earlier payment of various sums which cumulatively amounted to N45.45bn as liquidation dividends in respect of the 20 banks as at July 2023.

The agency implored relevant stakeholders to visit any of the NDIC’s offices closer to them or go to the claims page on the Corporation’s website, www.ndic.gov.ng to download, complete and submit the verification form with prescribed supporting documents to the dedicated email for the purpose: claimscomplaints@ndic.gov.ng.

The closed banks covered by the exercise are Liberty Bank, City Express Bank, Assurance Bank, Century Bank, Allied Bank, Financial Merchant Bank, Icon Merchant Bank, Progress Bank, Merchant Bank of Africa (MBA), Premier Commercial Bank, North South Bank and Prime Merchant Bank. Others are Commercial Trust Bank, Cooperative and Commerce Bank, Rims Merchant Bank, Pan African Bank, Fortune Bank, All States Trust Bank, Nigeria Merchant Bank and Amicable Bank in-liquidation.

197m Nigerians Not Insured,Says NAICOM

Mohammed Shosanya

The National Insurance Commission (NAICOM),says 197million Nigerians have no insurance,lamenting that only three million Nigerians are insured.

Dr Usman Jankara, NAICOM’s Assistant Director, Corporate Strategy and Special Duties, disclosed this in a paper he delivered at the recently-held journalists’ seminar in Uyo, Akwa Ibom State, titled: “Insurance sector and the Nigerian Economy: Impact, Challenges and the new Frontiers”.

He stated: “Concerning the number of those insured, it is put at three million. As at last year when the figure was taken, Nigeria is assumed to be 200 million.

“From 2015 till date, when you look at Gross Premium Income of the industry, we were at N282 billion in 2015, and today it is N736 billion, representing average growth of 15 per cent”

“That is not to say the industry couldn’t have done better, but to point to the fact that things are not as bad as they were today. There has been no economy that has grown 15 per cent over a 10-year period. None of the sub-sectors have done that.

“As of 2015, assets grew from N917 billion to N2.32 trillion in 2022, an exceptional growth of about 60 per cent.Our insurance penetration rate, that is insurance to Gross Domestic Product (GDP) is 0.4 per cent, and the insurance density, that is, how many Nigerians are insured, is 1.5 per cent, he revealed.

He maintained that Life insurance grew from N86 billion in 2015 to N309.1 billion in 2022.

He added:“Also, non-life insurance grew from N198.3 billion in 2015 to N417.3 billion in 2022”.

Speaking earlier,NAICOM’s Chief Executive Officer, Mr Sunday Thomas, said efforts on to deepen insurance sensitisation to achieve huge penetration.

Insurers Begin Campaign For New Motor Insurance Premium Rates

Mohammed Shosanya

Nigeria Insurers under the Insurers Committee in collaboration with the National Insurance Commission (NAICOM) flagged-off campaign for the new motor insurance premium rates in the country on Tuesday

The Chairman, Publicity Sub-Committee of the Insurers Committee, Mr Akinjide Orimolade,said at a news briefing in Lagos said that the campaign is tagged : ‘Small Premium, Big Coverage’.

It will begin on July 24 across various medium and social media and would run for three months.

NAICOM had on Dec.22,2022 approved increment on the Third Party Motor insurance policy, among other various classes, from the former N5000 to N15,000, with effect from Jan.1.

The regulator announced this in a circular titled; New Premium Rate for Motor Insurance with number: NAICOM/DPR/CIR/46/2022, signed by the Director, Policy and Regulation, NAICOM, Mr Leo Akah For the Commissioner for Insurance to all insurance companies.

“Pursuant to the exercise of its function of approving rates of insurance premium under Section 7 of NAICOM Act 1997 and other extant laws, the commission hereby issue this circular on the new motor insurance premium rates effective from Jan.1.

“ The Third Party Property Damage (TPPD) which is the limit of claims an insured can enjoy on a policy for private motor will now be N3 million for the new premium of N15,000.

“ The limit for own goods would be N5 million, with a new premium of N20,000, premium rate for staff bus is now N20,000 and its TPPD would be N3 million,” the commission said.

According to the regulator, commercial vehicles, trucks and general cartage now has a TPPD limit of N5 million with N100,000 premium rate, special types now has a TPPD limit of N3 million and premium of N20,000.

The commission stated that Tricycle now has a TPPD limit of N2 million and premium N5000 while motorcycle now has a TPPD limit N1 million and premium of N3000.

NAICOM noted that the comprehensive motor insurance policy premium rate shall not be less than five per cent of the sum insured after all rebates or discounts.

He stated that the insurance companies have since commenced implementation of the new rates as directed, while consumer education continues to dominate discussions at various fora.

“It is in response to the plethora of questions and enquiries received from our clients that the Insurers Committee through its publicity sub-committee decided to embark on this short but eventful campaign.

“This is to shed more light on the new rates and generally improve insurance uptake among the citizens. This is a Pan-Nigerian campaign that will cover the social media, print, radio jingles and television commercials for the insuring public,” he said.

Photo Caption
L-R: Davis Iyasere, Head, Corporate Affairs/Human Resources, Nigerian Insurers Association (NIA); Managing Director/CEO, Sunu Assurance Plc, Mr. Samuel Samuel Ogbodu; Director General, Nigerian Insurers Association (NIA), Mrs Yetunde Ilori; Managing Director/CEO, Stanbic IBTC Insurance, Mr Mr. Akinjide Orimolade; Deputy Director, Corporate Communications/Market Development, National Insurance Commission (NAICOM) and the Managing Director/CEO, Guinea Insurance Pllc, Mr Ademola Abidogun all members of the Publicity Sub-Committee of the Insurers Committee in a group photograph shortly after the press conference to announce the flag-off of the ‘Small Premium, Big Coverage’ campaign on new premium rates for motor insurances today in Lagos.

Oyo Begins Community Insurance Scheme

Mohammed Shosanya

The Oyo State Health Insurance Agency, OYSHIA, has begun a community Based Health Insurance Scheme (CBHIS) in three communities in the state.

The official activation of the scheme and enrollment of Governor ‘Seyi Makinde Adoptees into the Oyo State health insurance scheme was held recently at Community Town Hall, Sepeteri, Saki East Local Government Area,a statement said

The statement quoted the Executive Secretary of OYSHIA, Dr. Olusola Akande,as saying that this is in a bid to ensure that every resident has access to quality healthcare services.

He explained that the essence of community- based health insurance and enrollment of Governor Seyi Makinde’s adoptees into the Community health insurance scheme and the benefits accruable to community health insurance in Sepeteri under the scheme.

According to her,the scheme will complement the widely accepted OYSHIA scheme that covers some percentage of residents in the state drawn from the formal and non-formal sector of the economy.

Speaking, the Chairman, Saki East Local Government, Hon Ramat Adeniran Mosunmade enjoined the beneficiaries to make good use of the opportunity they enjoyed from the state government.

In his remarks,the Commissioner for Establishments and Training, Alh. Siji Lawal urged the people to reciprocate Engr. Seyi Makinde gestures by supporting his administration for a second term so that they will continue to enjoy more dividends of democracy.

NAICOM: Nigeria’s Insurance Assets Now N2.3tr

The National Insurance Commission (NAICOM)says Nigeria’s insurance industry’s total assets grew to about N2.3 trillion in the second quarter of 2022.

This indicates an increased growth rate of 11.9 per cent over the first quarter,NAICOM,disclosed this in a bulletin on Insurance Market Performance made available by its spokesman, Rasaaq Salami.

It said gross premium income in the second quarter of 2022 stood at N369.2.8billion,indicating a 20.1per cent growth rate compared to the same period of the previous year and an impressive 65.0per cent, quarter on quarter.

It added that the continued steady growth from the first quarter of the year correlates with the current performance of the period under review.

The market data reveals that the industry grew 20.1% higher than the national real Gross Domestic Product (GDP) of 3.5% during the same period,indicating the industry’s impressive performance given the recent trajectory.

The industry’s financial position indicated a total of N1.2 trillion in assets in Non-Life Insurance while Life Insurance stood at about N1.1trillion, while the insured recorded gross claims of N174.8 billion in the second quarter of the year, representing 47.3 per cent of premiums collected during the period,the statement said.

It also noted that gross claims made in the second quarter of the year indicated a 0.2 per cent growth compared to the corresponding period of 2021, which reflects the professional underwriting capacity of the industry driven by the intensified regulatory activities of the commission,’’ the report stated.

The market report indicated that net claims paid were N148.2billion, signifying 84.8 per cent of claims made during the period,adding that:“This reflects the professional underwriting capacity of the industry as driven by the intensified regulatory activities of the commission,’’ the bulletin stated.

The non-life segment maintained its primacy at 59.3% of the total premium generated. Insights in the segment show Oil & Gas was the leading driver at 32.5% with a distant second at 20.7% for Fire.

Motor Insurance stood at 14.8%, while Marine & Aviation, general accident and miscellaneous reported a share of 12.3%, 10.9% and 8.9% in this order.Life business on the other hand recorded 40.6% of the insurance market production as its share contribution, gradually closes up.

The share of Annuity in the Life Insurance business logged at about Twenty-Five per cent (24.7%) while individual Life held a major driver position at 41.8% of the premium generated during the period.

It added that the insurance business recorded a near-perfect point of 88.9 per cent of claims settlement in Life Insurance as against 76.8 per cent in a non-life segment which stood at 76.8 per cent, while motor insurance retained its vanguard position- posting a claims settlement ratio of 92 per cent.

“Progress was more noticeable in the oil and gas sector with 85.7 per cent of claims settlement ratio, an increase of some 43 points compared to its position of 42.8 per cent recorded in the corresponding period of 2021.General accident claims recorded 75 per cent, fire claims recorded 76.2 per cent, while aviation and Marine claims recorded 61.9 per cent,” it stated.

The bulletin added that sustained market development and growing confidence in the industry would eventually improve the negative peculiarities and challenges of the market.

NDIC Publishes Final Dividend Declaration Notice To Depositors, Creditors Of 20 Failed Banks

The Nigeria Deposit Insurance Corporation, NDIC, has published a final dividend declaration notice to depositors of 20 failed banks.

The corporation also published a final dividend declaration notice to creditors of five banks in liquidation.

The notice published on its website on Friday, listed the banks to include ABC Merchant Bank Ltd., Commercial Trust Bank Ltd. and Continental Merchant Bank Plc.

Others are Merchant Bank of Africa Ltd., Pan African Bank Ltd., Kapital Merchant Bank Ltd., Eagle Bank and Allied Bank of Nigeria, among others.

According to the corporation,the creditors’ banks include Cooperative & Commerce Bank, Nigerian Merchant Bank, Rims Merchant Bank, Alpha Merchant Bank and Continental Merchant Bank.

It said that the director would after the expiration of the date proceed to make a final dividend payment without regard to such claims.

It added:“NDIC, the official liquidator of the under-listed defunct banks (in-liquidation), hereby notifies the general public of the final call for dividend declaration to depositors, creditors of these banks.We, therefore, advise all eligible depositors and creditors of these banks to either meet NDIC officials in any of the NDIC Offices.They can also visit the claims page on NDIC website on www.ndic.gov.ng for the verification of their claims, commencing from Sept. 5 till Oct. 14’’

The corporation also said it was in the process of paying insured and uninsured deposits to depositors of Eurobanc Savings and Loans, Grace field Microfinance Bank and Okporo Microfinance Bank, MFB.

It revealed that it was also in the process of paying liquidation dividends to the depositors and ex-staff of MFBs.

How To Protect Bank Depositors’ In Nigeria -NDIC

The Nigeria Deposit Insurance Corporation (NDIC), has said that effective resolution of banks in distress is critical to depositors’ protection.

The corporation said the effective resolution would also ensure the stability of the financial system.

It describes resolution plan as one put in place by regulators to facilitate the effective resolution of a distressed bank without any disruption or loss of the taxpayers’ money.

It added that the plan also served as a guide to regulators for achieving an orderly resolution in the event that recovery measures were not feasible.


NAICOM Board Moves To Sanitize Nigeria’s Insurance Industry

The Governing Board of National Insurance Commission, otherwise known as NAICOM is seeking the support of the Federal Government to effect major restructuring of insurance industry including the elimination of non-performing companies in the sector.
Dr. Abubakar Sani, the Board Chairman, National Insurance Commission, disclosed this this when he led members of the Governing Board on a courtesy visit to Minister of Finance, Budget and National Planning, Zainab Ahmed, on Monday.

He informed the Minister of the board’s plan to carry out specific exercises aimed at sanitizing the insurance industry in the country, stressing that enforcement of code of ethics for companies in the sector is underway.

He added:”We shall enforce the professional code of ethics among the insurance entities, strengthen their corporate governance, which the Board believes will sanitize the market. The NAICOM Board will in due course revisit the matter of recapitalization of insurance industry and will clean up it’s act with the enforcement of code of ethics of insurance profession and practice, and code of good corporate governance in companies. The board is working to sanitize the market and will be taking out companies that are not measuring up to expectations” .

Speaking,, Zainab Ahmed, the Minister of Finance, Budget and National Planning, implored the Board of NAICOM to develop and implement policies which will strengthen the insurance sector and reposition the industry to enhance its contribution to the nation’s Gross Domestic Product (GDP) and to the economy at large.

She urged advised members to be mindful of existing guidelines regulations and Circulars that guide the operation and conduct of Governing Boards of Federal Government Parastatals, Agencies and Commissions and strictly adhered to it.
“The initiative to pay this visit barely two months after your inauguration demonstrates your sense of purpose and desire to work closely with the Ministry towards realizing the mandates of NAICOM.
“At your inauguration, I called your attention to some issues of interest and concern in the Insurance Industry which require your urgent attention, This visit, therefore, affords me yet another opportunity to once more congratulate you on your inauguration and inform you that Government has very high expectation of this Board. You must build on the successes of the immediate past Board.
“In this regard, | wish to restate some of those issues and remind you of your role as Chairman and members of the Governing Board of NAICOM.
“The Board which also comprises the Management should develop and implement policies which will strengthen the insurance sector and reposition the industry to enhance its contribution to the nation’s GDP and to the economy at large.It is of utmost importance for the New Board and the Management of the National Insurance Commission to work harmoniously together in order to actualize the mandate of the commission.

“The Board has to develop strategies to systematically build the capacity of members through workshops, seminars, study tours, etc. to enable effective contribution towards the growth of the Industry, especially as some members were not drawn from the Insurance sector.Members to note that there are guidelines regulations and Circulars that guide the operation and conduct of Governing Boards of Federal Government Parastatals, Agencies and Commissions and should be strictly adhered to – frequency of meetings; entitlements of Board members, travel guidelines and related matters.

Nigerian Banks Safe, Sound -NDIC

The Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Mallam Bello Hassan said banks in the country are safe for business.

He advised Nigerians not to worry about the soundness of banks,just as he assured that Polaris Bank is healthy and safe for them to transact business with.

He spoke on the sideline of the 11th annual capacity-building workshop for law enforcement agencies, bankers and other stakeholders in Lagos on Wednesday to discuss ‘Effective Investigation and Prosecution of Banking Malpractices that led to the Failure of Banks’.

He said: “Polaris Bank and all banks that are operating within the country are safe and sound as long as the license has not been revoked by the Central Bank of Nigerian (CBN). The regulator that issued the license if there is any problem is the one that will not revoke the license. As long as the license is not revoked, you are free to continue to bank with those institutions.

“The bank is safe because CBN and NDIC do carry out stress testing to ascertain the soundness of banks. We do stress, in fact, we do it on a regular basis. We do it on a monthly basis to test-tress the financial soundness of those banks.My position here is that Polaris Bank is safe and Nigerians should continue doing business with it. The bank is safe”.



NDIC Gives PHC Facilities In Kwara Facelift

The Nigeria Deposit Insurance Corporation (NDIC) has rehabilitated the Basic Health Care Centre at Lanwa in Moro Local Government Area of Kwara.

Speaking at the commissioning of the project on Sunday , Mr Bello Hassan, the Managing Director of the NDIC, said the project was part of the corporate social responsibilities of the corporation, adding that it was among many of such projects being sponsored by NDIC across the country.

He was represented at the event by Mr Chima Onyechere, the Zonal Controller, NDIC Ilorin.

He explained that as far back as 1995, the corporation had instituted an endowment fund for several health institutions in the country and made generous donations through corporation’s project-based funding scheme.

“This initiative is part of the corporation’s pursuance of its corporate social responsibility to provide assistance in enhancement of the health sector, and to move the country forward, ” he said.

Hassan observed that most of the basic health institutions in Nigeria lacked functional infrastructure facilities, resulting in poor health standards.

He said that against this background, it had become necessary for corporate organisations, other well meaning groups and individuals within and outside the country to assist the health institutions.

He emphasised on the important roles the corporation played in the country, adding that Deposit Insurance Scheme (DIS) had become key component of moat financial systems worldwide.

“For over 25 years NDIC is charged with mandates of deposit protection, has remained active safety nets player in spite of many daunting challenges.

“Apart from guaranteeing bank deposits up to the limits permitted by law, the corporation has been involved in the supervision of insured institutions as well as resolving the problems of failing and failed financial institutions,” he said.

Speaking, Alhaji Issa Musa, the Officer in Charge of PHC Lanwa, commended NDIC for the humanitarian services to the community.

He noted that the timely interventions of the corporation was a prayer answered as the healthcare centre was in a dilapidated state.

According to him, the health facilities service about 40 communities within Lanwa and that this gesture came at the right time.

“NDIC has done wonderful job of renovating the facilities and providing the necessary equipment and consumables needed.

“However, we still have the challenges of under staffing. We don’t have nurses as I am the only qualified staff on ground, there are no lab technicians, pharmacists, nurses, midwives and doctors,” he lamented.

Musa lamented that the health centre even lacked cleaners and night guards, while appealing to the state government to complement the job done by the NDIC by providing health workers and necessary drugs for the welfare of the citizens.

The Officer in charge of the facility also reminded the government of the dangerous and bad road network linking many communities to Lanwa, while urging the government to reconstruct the roads for the development of the community and the state as a whole.

Dr Raji Razaq, Kwara Commissioner for Health, commended the corporation for the kind gesture, adding that state government alone could not take care of all the health needs of the citizens and solicited the contributions of all stakeholders.

Razaq, who was represented by Dr Stephen Arigidi, the Deputy Director of Medical Services and Training in the Ministry of Health, stated that Lanwa was an ancient railway community that served other surrounding communities with the basic health centre.

He assured that the government was committed to promoting the health of the citizenry as it had released counterpart funds for the Basic Health Care Provision Fund (BHCPF).

The commissioner disclosed that presently the state government had commenced the free medical, surgical interventions across the 16 local government areas of the state.(NAN)