CBN tasks NAIC on micro credit

The Central Bank of Nigeria has tasked the management of the Nigerian Agricultural Insurance Corporation to go the extra mile by adopting the CBN micro-credit policy initiative with a view to breaking new grounds and meeting other needs of the populace in the areas of micro-financing and micro-insurance, according to a statement on Friday.
Speaking at an interactive session with members of the African Rural and Agricultural Credit Association, Mr. Boma Benebo of the Development Finance Department of the CBN, commended NAIC for its success in the unique agriculture insurance business since its establishment 20 years ago.
He advised NAIC to factor into the new micro-credit drive with a view to diversifying its operations and also strengthening its bottom line in the competitive insurance business.
He reiterated the need for NAIC to reach out to more stakeholders in the agric business, particularly the multinational corporations in large scale agriculture businesses, saying the Corporation had .a huge potential to succeed in its statutory mandate to serve as a catalyst towards boosting agricultural business and food security in the country.
Responding, the Managing Director of NAIC, Mr. K.K Yusuf, who was represented by the Corporation's Executive Director of Operations, Mr. Yemi Akinyemi, commended the intervention and support of the CBN through its Agricultural Credit Guarantee Scheme, saying the
ACGS mandatory directive to commercial banks to obtain NAIC cover for their agric loan facilities had greatly benefited NAIC and therefore kept the Corporation alive to its statutory responsibility to its clients, the farmers.
He further explained that NAIC is a key agency that compliments other government initiatives towards achieving food security and the attainment of poverty reduction among the farming populace, saying the Corporation was an indispensable tool in Nigeria's efforts at attaining acceptable level of development in the promising agric sector of the economy.
He added that the ACGS intervention had succeeded in minimizing the effects of production risk, while recovery of loans had improved tremendously. He revealed that NAIC had to venture into the general insurance business as permitted by NAICOM for the purpose of diversifying its service delivery to the public.
He said NAIC was committed to adopting the principle of corporate governance towards ensuring that public confidence was realised and sustained in its drive to provide different insurance services in the country.
He also assured that NAIC was available to collaborate with other agencies whose desire was to boost food security and alleviate poverty in the country.
Meanwhile, NAIC has finalised arrangements to partner with All Farmers Association of Nigeria to sensitise and equip farmers on modern management practices.
NAIC in a statement said that members of AFAN engaged NAIC officials in an interactive session during which the partnership was agreed.
The statement, signed by Head, Corporate Affairs, NAIC, Mr Butrous Pembi, said modern management practices would help improve farmers’ yield and reduce the effect of natural disasters.
The Executive Director, NAIC, Mr. Bappa Toro, said farmers needed to be adequately educated on how to minimise losses in the event of flood, drought and pest infection.
He said that the statutory mandate of NAIC was to indemnify farmers who insured their farms with the corporation and to compensate or offer relief to those who did not partronise it.
The acting national president of AFAN, Mr. Femi Coker, lamented the spate of flood and devastation of farmlands across the country and welcomed the NAIC initiative to organise sensitisation campaigns and agricultural extension services in collaboration with AFAN.
He further expressed fear that food security could be threatened if stakeholders did not work out intervention energy in the agro-allied business.

AIICO General adopts more growth strategies

Aiico General Insurance Company Limited has reiterated its resolve to be outstanding in the general business.
In a statement on Saturday, the organisation said it had concluded plans to take the insurance market by storm, having concluded plans to start unfolding exciting value-added products and packages that would delight customers.
The statement said with the successful conclusion of its internal policies and processes, in line with global best practice and standards, the company was now poised to improve significantly the delivery of qualitative service to its customers in line with its mission statement of continuing to protect wealth through superior risk management capabilities, whilst continuously exceeding stakeholders’ expectations.
According to the statement, “The Management of this organisation leverages on market experience and professionalism, whilst leading a team of dedicated, highly efficient and well motivated staff. It has also deployed a robust information technology platform to drive its processes. The company has a wide and functional distributive channel, with branch offices in all the major cities of the country; it is market-driven, better-focused, less bureaucratic, more flexible, faster, flatter and client-connected.”
The statement said the impact of all the reforms was already being felt in the market, with comments from clients and customers alike in the area of improved and qualitative service delivery.

CINN president advises operators on professionalism

THE President of the Chartered Insurance Institute of Nigeria, Mr. Adeyemo Adejumo, has called for professionalism in the management of insurance businesses in the country.
In a statement made available to our correspondent on Saturday, he said the failure of any organisation to keep abreast with trends of innovations in any form of business transactions might not be unconnected with the quality and quantity of both human and capital resources at its disposal.
According to him, "It is our belief that with the enormous funds now at the disposal of most insurance companies, which is as a result of the recapitalisation exercise, serious attentions would now be given to improving operational activities of these insurance companies for the betterment of our society in general."
He said the industry could complete favourably with other insurers elsewhere in the global market because of the recent recapitalisation exercise in the financial sectors, adding that the industry could now settle claims as at when due. He pointed out that improved training facilities could now be extended to their members and that the country would be better for it.
He said, "I charge you members of ORC as good ambassadors of our great profession to exhibit that habit of utmost good faith in both dealing with ourselves and members of the public, so that the trend of this new found rising profile of the industry would be sustained.
"It is pertinent to highlight here that with this improved and rising profile of our great industry, professionalism should not be thrown to the blinds. The public is watching and may not hesitate to condemn us where we go contrary to their expectations in transacting our business. It is however, my advice that you will not rest on your oars, you will press forward until you attain that height that can only be surpassed by angels."
He enjoined them to be more tenacious in discharging their official duties so as to live credible marks on the sand of times.
The Chairman of the committee, CIIN, Mr. Ademola Bukola, charged all insurance companies to work toward increasing their shareholders’ fund to the tune of N20bn in the next five years, without waiting for the government to do so.
According to him, "If the insurance companies can build a large stock capacity, they can be rated among the mega companies in the world, hence, we need to sit down to examine and fine tune solutions to correct our mistakes and imbalances."


Sovereign Trust Insurance pays N260m claims

Sovereign Trust Insurance Plc has paid claims worth N260m by the end of August. This was up from the N181m paid in the corresponding period of 2006 representing an increase of 43.65 per cent.
In a statement on Friday, the Managing Director of the company, Mr. Seun Ajayi, said STI was poised to meet its obligations as at when due and would not disappoint its customers and other stakeholders.
This announcement from Sovereign Trust Insurance Plc, which is one of the companies to have successfully recapitalised, is coming on the heels of the restructuring exercise embarked upon by the company to help it focus more stringently on meeting the needs of its numerous customers.
The National Insurance Commission has inaugurated an initiative that is focused on alleviating the problems encountered by policyholders with a directive to insurers to ensure prompt payment of claims.
Speaking on the same development, the Executive Director Operations, Mr Wale Onaolapo, said, “What we are doing is very much in line with the objectives of the industry regulators. The underlying thing is the well being of our customers, both individuals and corporate. Our commitment to this is unambiguous.”
Currently, STI has an authorised share capital of N3.5bn with a fully paid-up capital of over N2bn.


C/River names marketer for Calabar music festival

The Cross River State Governor, Mr. Lyel Imoke, has appointed Advertange Entertainment as the markete for the maiden edition of the 2007 Lake Side music concert coming up in Calabar
The acting Managing Director, Cross River State Tourism Bureau, Mr. Nzan Ogbe, in a statement on Friday, said the fiesta which will form part of activities lined up for this year’s annual Christmas festival would be held in conjunction with the state tourism board.
The statement said the music fiesta was motivated by the need to creatively boost the yearly street carnival that had attracted over three million visitors and tourists both from within and outside Nigeria to the state.
The parade, made popular by the former governor of the state, Mr. Donald Duk, has been identified as a major tourist attraction for holidaymakers by the current government, which is set to boost crowd attendance through the concert idea.
The statement said by the appointment, Advertange Entertainment, a subsidiary of Advertange Limited, would liaise with the Cross River State Christmas Festival Sub Committee in charge of marketing to source for sponsorship for the event.
The Lakeside Music Fiesta is also intended to showcase most of Nigeria ’s talented artistes as a way of promoting the country’s entertainment industry.
Meanwhile, Advertange Entertainment has called on corporate organisations and brand owners to cash in on the opportunities provided by the concert scheduled to hold in December.
Advertange, in a statement, said the sponsorship of the event by prospective brand owners and organisations would enable such sponsors latch into the marketing opportunities of the fiesta which would attract over five million tourists and holiday makers.
Ogbe said sponsors would get value for their money as Calabar remained the first tourist destination in Nigeria because it symbolised the image of a new Nigeria in the international community.
The Managing Director of Advertange Limited, Mr Akin Adelegan, said his company went into the deal as a way of demonstrating support for showcasing the rich, tourist potential of the state to the outside world while also promoting the entertainment industry in Nigeria .