Insurance - NEWS AGENCY OF NIGERIA

Philip Daniel Yatai
Feb, Thu, 2025

Metro

FCTA approves N795.6m to insure movable, immovable assets

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By Philip Yatai

The Federal Capital Territory Administration (FCTA) has approved N795.6 million to provide a 12-month insurance cover for its movable and immovable assets.

Mrs Grace Adayilo, FCT Head of Civil Service disclosed this in Abuja on Thursday, while briefing journalists on the outcome of the FCT Executive Committee meeting, the first in 2025.

Adayilo said that the committee approved the contract to four insurance companies and three insurance brokers.

According to her, the insurance policy is mainly to safeguard FCT’s assets against various risks, including damage, loss or destruction.

“This will ensure the continuity of government businesses and minimise financial losses in the event of unforeseen incidents.

“This is in line with federal government’s directive, mandating the compulsory insurance of government assets, properties, buildings under construction and public funds,” she said.

She identified the insurance companies and brokers as Consolidated Hallmark Insurance PLC (Lead), KBL Insurance PLC, Cornerstone Insurance PLC and Crown Takaful Insurance Ltd.

Adayilo also identified the three insurance brokers as Sam-Vic Insurance Brokers Ltd (Lead), Radiance Insurance Brokers Ltd, and KOB Insurance Brokers Ltd. (NAN)

Edited by Rotimi Ijikanmi

Ismail Abdulaziz
Jan, Thu, 2025

Agriculture

Niger urges farmers to insure farms against disasters

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By Rita Iliya
Niger Government on Wednesday advised farmers to insure their farms against disasters, following recent floods that devastated farmlands in the state.

Alhaji Musa Bawa-Bosso, Commissioner for Agriculture in Niger, gave the advise during an on-the-spot assessment of farms affected by flood in Mokwa Local Government Area of the state.

Bawa-Bosso represented by Dr Mathew Ahmed, Permanent Secretary of the ministry, said insuring farms against disasters would provide farmers with financial protection and support during times of crisis.

“Disasters such as floods, droughts, and pests can have devastating effects on farms, leading to significant losses for farmers just like it has happened.

“By insuring their farms, farmers can receive financial compensation for their losses, which would help them to recover quickly and continue farming,” he said.

He attributed the flood to excess water from Kainji and Jebba dams, associated with climate change.

He assured the farmers that the flood would recede within five days and that extension agents would collect data on affected farmers for possible government intervention.

Bawa-Bosso disclosed that the state government plans to link affected farmers with the Hydro Power Producing Areas Development Commission (HYPPADEC) for further intervention.

Also speaking, Alhaji Mohammed Baba, Managing Director of Niger State Agricultural Mechanisation Development Authority (NAMDA), advised farmers in the state to key into the Niger Foods Project.

Baba explained that the project allows farmers to access inputs on credit and repay at harvest, thereby boosting their production.

Earlier, Alhaji Mahmudu Usman, ‘Etsu yankpa’ of Kusogi village, disclosed that the flood had destroyed about 300,000 hectares of rice farms worth billions of Naira.

Usman stated that the disaster had affected indigenous and non-indigenous farmers in more than 25 villages under Kede Community in Mokwa Local Government Area.

He appealed to the state government to come to the aid of the farmers, as their livelihood depends on the farms.

The News Agency of Nigeria (NAN) reports that floodwaters, allegedly from Kainji and Jebba dams, have inundated numerous farmlands in at least ten communities, causing widespread destruction.(NAN)
Edited by Fatima Sule Abdullahi/ Isaac Ukpoju

Ismail Abdulaziz
Jan, Thu, 2025

Foreign

Security structure crucial to aircraft leasing – Boeing Director

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By Gabriel Agbeja

Ms Rose Lereece, Director Customer Finance, Boeing Commercial Airplanes, has said that security structure is crucial in obtaining aircraft lease.

Lereece made this known at the Airline Economics Growth Frontiers Global in Dublin, Ireland, on Wednesday.

The News Agency of Nigeria (NAN) reports that the director described structure as a “Stand-by Letter of Credit (SBLC),’’ serving as a security provided by a commercial bank and covered by a confirming Banking and an Insurer.

According to her, SBLC provides a short-term guarantee (immediate and irrevocable) which allows the lender or lessor to cash-in an amount to the value of six to 36 months of payments in U.S. Dollars.

Lereece said that the payments were envisioned to include both rentals and maintenance reserves.

She listed SBLC Security features to include, immediate availability and irrevocable funds, US Dollar settlement and further security in the form of confirming and or third-party insurance.

She said that others were more entities that implied more security and fees, giving lessor or lender the ability to cure and continue or severe and repossess.

“`Collateteralisation by the airline of a fraction of the agreed SBLC value may be required by the commercial banks, “ she added.

According to her, airline pays commercial banks a single rate that embeds all fees including insurance where applicable while commercial banks pay lessor in the event of an issue.

The director explained that commercial banks obtained SBLC insurance support from the confirming bank while the confirming bank obtained SBLC insurance support from the insurance provider.

She further explained that the insurer provided insurance for the confirming bank or the commercial bank

Contributing, Mr Moor Ibekwe, Boeing Sales Director Africa Region Commercial Airplanes, said that the value of the SBLC, measured in payments due, could be six to 36 months for both rental and maintenance reserves.

He explained “playout term“ as one-off or monthly according to the severity of the underlying issue.

“Continued utilisation or restoration would be at the behest of the lessor or the lender, confirming bank support needed for the lease or loan traction.

“Insurance support needed for the lease/ loan transaction while tenor is the period for which the SBLC must be available to the lessor or lender in the first five years of a 12-year lease,“ he added. (NAN) (www.nannews.ng)

Edited by Jane-Frances Oraka

Folashade Adeniran
Dec, Wed, 2024

General News

AI: ASSBIFI boss harps on journalism training

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By Grace Alegba

The President of the Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASSBIFI), Mr Olusoji Oluwole, has emphasised the critical role of journalism in human empowerment and knowledge acquisition.

According to him, it is incumbent on journalism practitioners’ to inform, educate and entertain their audience in a dynamic manner, especially in an increasingly complex financial landscape.

Oluwole said this at a one-day capacity-building training programme organised by the Association of Business Editors of Nigeria (ABEN) in Lagos.

The theme of the conference was “The Intersection of Finance, Technology, and Innovation: Decoding Financial Reports, Blockchain Technology, and Artificial Intelligence”.

The guest speaker urged business editors to leverage the workshop’s insights to deliver accurate, unbiased, and digestible information to the public.

Oluwole emphasised the critical intersection of finance, technology, and innovation, particularly the impact of artificial intelligence (AI) on financial reporting, banking, and broader economic activities.

He acknowledged AI’s transformative power, noting its ability to perform spontaneous tasks that would previously take weeks.

Oluwole, however, warned of the consequences of AI restrains, which he said has potential challenges, including manipulation.

“AI systems are developed by humans and, therefore, prone to flaws.

“This training aims to equip journalists with the skills to critically analyse AI-generated reports and raise pertinent questions before dissemination to the public,” he said.

He also addressed AI’s dual impact on banking, citing its benefits in efficiency and automation while noting its role in enabling fraudulent activities like unauthorised withdrawals.

Oluwole stressed the importance of robust IT security measures, such as two-factor authentication, to safeguard financial systems.

He further described financial fraud driven by AI as a global issue requiring concerted efforts to tackle.

To Mr Doyin Owolabi, a former President of the Institute of Chartered Accountants of Nigeria (ICAN), the advantages of AI in financial analysis cannot be overvalued.

Contributing to the theme, he stated that AI accelerates data analysis, forecasting, and customer service while reducing human errors.

Owolabi dismissed the fear that AI is capable of dislodging the services of accountants in the developing world.

He projected that by 2030, the role of cashiers, data entry clerks, and telemarketers might face automation but noted that AI would enhance, rather than eliminate, human contributions in the financial sector.

“AI helps streamline processes and boost productivity, but the human element in navigating complexities and providing strategic value is unmatched by machines,” Owolabi added. (NAN)

Edited by Olawunmi Ashafa