Business

Strengthen Credit Control Units, Insurance Coys Told

Published

16 years ago

August 28, 2009

Determined to put an end to the problem of outstanding premium in the nation’s insurance industry, the insurance companies operating in the country have been advised to strengthen their credit control units to improve premium collection process.

The Accounting Technical Committee (ATC) of the Nigerian Insurers Association (NIA), in its reports to the members of the association, stated that it has recommended best practices for treatment of outstanding premium in the insurance industry.

Mr. Oluwadare Emmanuel, chairman, ATC, pointed out that, “the Accounting Technical committee examined the impact of the write off the outstanding premium of more than 365 days on the financial result of insurance companies and suggested that the credit control units of insurance companies should be strengthened to improve outstanding premium collection process”.

The committee also proposes that the production of marketers should be based on cash collection and a common software for capturing insurance transaction should be developed for insurance companies.

The problem of outstanding premium has continued unabated in the insurance industry in spite of the fact that section 50 of the Insurance Act 2003 provides that insurance companies should desist from granting insurance covers if the required premium has not been paid.

Section 50 of the Insurance Act states that, “The receipt of an insurance premium shall be a condition precedent to a valid contract of insurance and there shall be no cover in respect of an insurance risk, unless the premium paid in advance”.

As insurance companies have always claimed that majority of these outstanding premium are being owed by the insurance brokers, who indulge in the habit of not remitting premium to the insurers, both are at loggerheads with each other.

The NIA is said to be compiling list of insurance brokers that have not been remitting premium collected on behalf of insurance companies to the insurers as required by law. The association actually sent circulars to its member companies to finish it with names of insurance brothers that have been found wanting in the area of remittance of premium.

However, the Nigerian Council of Registered Insurance Brokers (NCRIB) has condemned the practice by some insurance companies who indulged in the habit of filling the books with false premium figures as a ploy to deceive the industry’s regulator.

Dede Ijere, president of the NCRIB, who spoke in Lagos, recently, pointed out that certain underwriters deliberately pad their books with false premium figures to deceive the market regulator, the National Insurance Commission (NAICOM) that the outstanding were actually collected but not remitted by the brokers.

Ijere noted that this practice is not only a cheap blackmail but disgusting and unacceptable, adding that “We have, therefore, complained to NAICOM and the Nigerian Insurers Association (NIA) for urgent attention”.

The NCRIB boss, who was apparently trying to exonerate the brokers from accusation of withholding of premium ment, for insurance firms, stated that the NCRIB has begun moves to verify accounts with the insurance companies.

In the light of this, the NCRIB has been discussing with the NIA, the umbrella body of underwriting firm in the country, to encourage its member companies to always reconcile their premium accounts periodically with brokers and report only the reconciled and certified figures

The NCRIB also said it has given further backing to NAICOM to enforce the no premium no cover provision in the Insurance Act 2003 to prevent a situation where insurers will continue to allege that brokers are not remitting the premium due to them.

Ijere said it has also been suggested that insurance companies should be made to present Certificate of Reconciliation to authenticate outstanding premium against any given brokers.

He, therefore, called on the underwriters for urgent resuscitation of the practice of periodic joint reconciliation with brokers in monthly or bi-monthly basis.

In case any broker is found wanting, he assured that the NCRIB disciplinary committee satisfactorily handles complaints against brokers over non-payment of premium due to the insurance companies.

Business

Agency Gives Insight Into Its Inspection, Monitoring Operations

Published

4 days ago

January 12, 2026

The Tide

The Director, South South Zone National Agency for Food Drug Administration and Control (NAFDAC), Pharmacist Chujwuma P.Oligbu has said its thorough implementation of its core mandate of monitoring has no link with witch-hunting or fault finding as perceived at some quarters.

Oligbu, made this known when he spoke as as guest at the maiden Rivers state Supermarkets stakeholders’ Seminar/Workshop in Port Harcourt recently.

Rather, he said they were mere opportunities for education, correction and continuous improvement.

The Agency’s South South Boss, noted that Supermarket operators who maintain transparent records, cooperate during inspections, and promptly address identified gaps demonstrate professionalism and commitment to public health standard.

He listed the deserving essence of supermarket operation to include the key aspects of supermarket operation that deserves emphasis is product sourcing.

“Supermarkets must ensure that all regulated products stocked on their shelves are duly registered with NAFDAC and sourced from legitimate manufacturers or distributors”, he said .

According to him, the presence of unregistered, expired, counterfeit, or improper labelled products undermines consumer confidence and poses serious health risks.

He pointed out that such has the likelihood of exposeing supermarket operators to legal sanctions that could damage their reputation and financial stability.

The NAFDAC Operator, further enlightened the participants that mere registration of a particular product with the Federal agency do not guarantee absolute consumption safety.

“Temperature control, cleanliness, pest control, stock rotation, and proper shelving are not optional practice; they are essential components of compliance”, he said.

The South South zonal director also told the operators of supermarket that their employees rotine training on the basis of the product they display for sale is of utmost importance.

In her presentation a Breast Milk Nutrition Expert , Professor Alice Nte of University of Port Harcourt Teaching Hospital (UPTH), was against the body’s prime attention to breast milk substitute or baby milk in supermarkets as well as its advertisement or promotion.

Nye jerked up the importance of mothers breast milk to the newborn baby and added that it help in fighting against childhood diseases, infections and combating cancer in breastfeeding mothers.

Meanwhile, NAFDAC Deputy Director, South – South Zone , Mrs. Riter Chujwuma educated the participants on the guidelines for global listing, and the need to adhere strictly to rules guiding global listing to avoid confiscation of their imported products.

By: King Onunwor

Business

BVN Enrolments Rise 6% To 67.8m In 2025 — NIBSS

Published

4 days ago

January 12, 2026

The Tide

The Nigeria Inter-Bank Settlement System (NIBSS) has said that Bank Verification Number (BVN) enrolments rose by 6.8 per cent year-on-year to 67.8 million as at December 2025, up from 63.5 million recorded in the corresponding period of 2024.

In a statement published on its website, NIBSS attributed the growth to stronger policy enforcement by the Central Bank of Nigeria (CBN) and the expansion of diaspora enrolment initiatives.

According to the data, more than 4.3 million new BVNs were issued within the one-year period, underscoring the growing adoption of biometric identification as a prerequisite for accessing financial services in Nigeria.

NIBSS noted that the expansion reinforces the BVN system’s central role in Nigeria’s financial inclusion drive and digital identity framework.

Analysts linked the growth largely to regulatory measures by the CBN, particularly the directive to restrict or freeze bank accounts without both a BVN and National Identification Number (NIN), which took effect from April 2024.

The policy compelled many customers to regularise their biometric records to retain access to banking services.

Another major driver, the statement said, was the rollout of the Non-Resident Bank Verification Number (NRBVN) initiative, which allows Nigerians in the diaspora to obtain a BVN remotely without physical presence in the country.

The programme has been widely regarded as a milestone in integrating the diaspora into Nigeria’s formal financial system.

A five-year analysis by NIBSS showed consistent growth in BVN enrolments, rising from 51.9 million in 2021 to 56.0 million in 2022, 60.1 million in 2023, 63.5 million in 2024 and 67.8 million by December 2025. The steady increase reflects stronger compliance with biometric identity requirements and improved coverage of the national banking identity system.

However, NIBSS noted that BVN enrolments still lag the total number of active bank accounts, which exceeded 320 million as of March 2025.

The gap, it explained, is largely due to multiple bank accounts linked to single BVNs, as well as customers yet to complete enrolment, despite the progress recorded.

Business

AFAN Unveils Plans To Boost Food Production In 2026

Published

7 days ago

January 9, 2026

The Tide

The leadership of the All Farmers Association of Nigeria (AFAN) has set the tone for the new year with a renewed focus on food security, unity and long-term growth of the agricultural sector.

The association announced that its General Assembly of Farmers Congress will take place from January 15 to 17, 2026 at the Abuja Chamber of Commerce and Industries, along Lugbe Airport Road, in the Federal Capital Territory.

The gathering is expected to bring together farmers, policymakers, investors and development partners to shape a fresh direction for Nigerian agriculture.

In a New Year address to members and stakeholders, AFAN president, Dr Farouk Rabiu Mudi, said the congress would provide a strategic forum for reviewing past challenges and outlining practical solutions for the future.

He explained that the event would serve as a rallying point for innovation, collaboration and economic renewal within the sector.

Mudi commended farmers across the country for their determination and hard work, despite years of insecurity, climate-related pressures and economic uncertainty.

According to him, their resilience has kept food production alive and positioned agriculture as a stabilising force in the national economy.

He noted that AFAN intends to build on this strength by resetting agribusiness operations to improve productivity and sustainability.

The AFAN leader appealed to government institutions, private investors and development organisations to deepen their engagement with the association.

He stressed the need for collective action to confront persistent issues such as insecurity in farming communities, climate impacts and market instability.

He also urged members to put aside internal disputes and personal interests, encouraging cooperation and shared responsibility in pursuit of national development.

Mudi outlined key priorities that include increasing food output, expanding support for farmers at the grassroots and strengthening local manufacturing through partnerships with both domestic and international investors adding that reducing dependence on imports remains critical to protecting the economy and creating jobs.

He stated that the upcoming congress will feature the launch of AFAN’s twenty-five-year agricultural mechanisation roadmap, alongside the announcement of new partnerships designed to accelerate growth across the value chain.

Participants, he said wi also have opportunities for networking and knowledge exchange aimed at transforming agriculture into a more competitive and technology-driven sector.

As part of its modernisation drive, AFAN is further encouraging members nationwide to enrol for the newly introduced Digital ID Card.

Mudi said the initiative will improve transparency, ensure proper farmer identification and make it easier to access support programmes and services.

Reaffirming the association’s long-term goal, he said the vision of national food sufficiency by 2030 remains achievable if unity and collaboration are sustained.

He expressed optimism that with collective effort, Nigeria’s agricultural sector can overcome its challenges and deliver a more secure and prosperous future.

Lady Usendi