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Naira Depreciation: Local Insurance Coys Transfer More Businesses Offshore  

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As the naira value continue to depreciate, insurance companies are now transferring more of their oil and gas businesses abroad through offshore reinsurance policies.
The local insurance firms are believed to be hedging against losses or depreciation of their premium income.
Experts in the industry have said the foreign exchange (forex) crisis is also eroding the capital base of local insurers while aiding huge capital flight.
 Analysis of activities in the insurance sector has revealed that premium income ceded offshore in the first quarter of 2024 (Q1’24) skyrocketed by 94.5 per cent year-on-year (YoY) to N95.11 billion from N48.9 billion recorded in Q1’23.
This is even as the local content law stipulates that 70 percent of all insurance risks associated with oil and gas businesses must be insured in Nigeria with registered Nigerian insurance companies.
Further breakdown of the figures show that oil and gas premium income stood at N132.01 billion in Q1’24.
However, insurers ceded N95.11 billion offshore while only N36.9 billion was retained, indicating only 28.1% retention.
The oil and gas businesses include prospecting, exploration, drilling, constructions, shipping, distribution, marketing, and transportation.
However, experts have expressed the opinion that the negative trend where insurers cede more businesses offshore is likely to continue as long as the foreign exchange (forex) crisis persists.
Further breakdown of the industry data show that in the full year ended 2023, oil and gas insurance premium was N167.8 billion while N113.1 billion was ceded offshore with only N54.7 billion was retained, indicating 25.2 retention.
In 2022, oil and gas premium income was N125.7 billion while N80.6 billion was ceded with only N45.1 billion retained, indicating 35.9 per cent retention.
According to the National Insurance Commission (NAICOM) the oil and gas portfolio, lamentably, remained a challenging angle in the market owing to its nature of enormous capital and professional requirements.
Speaking on the situation, Managing Director of Universal Insurance Plc, Mr. Ben Ujoatuonu, said the exchange rate crisis has reduced insurers’ capital when valued in dollars and most insurance companies are like post office transferring capital to reinsurers.
He said, “The exchange rate has created a whole lot of issues in the oil and gas business and all dollar denominated businesses. First, it has reduced our capital because when you take N3 billion and do the conversion to dollars at about N1500, you will see the level of capital that is left.
“Underwriters are required to retain risk based on five per cent of shareholders funds denominated in naira. Let’s assume that shareholders funds is N10 billion, five per cent of N10 billion is N500 million as your deductible retention, when you take N500 million and convert it to dollars, it’s next to nothing.
“What it means is that you will now be ceding out more of the businesses to reinsurers than what you will retain. So, insurers have turned almost to post office, and companies also don’t have the required capital because the capital has been eroded in terms of retaining the business.
“So, the exchange rate has really affected the development and growth in the oil and gas business in Nigeria because if the reverse is the case, what will happen is that Nigerian insurers will retain more and less of the premium will go out.
“But with what we have now, what the entire market will retain will be less than even what one insurance company can keep because of the challenge of exchange rate. And we don’t see the situation abating anytime soon”.
Also speaking on the impact of the forex crises on the insurance industry, Chief Client Officer of Axa Mansard Insurance, Mrs. Rashidat Adebisi, said due to the foreign exchange crisis, the cost of repairs have gone up.
According to her, “The harsh economy is affecting every industry in the country with the insurance sector not left out. With the fluctuations in the foreign exchange, the repair cost of vehicles and other things have gone up”.
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TTP Trains Customs Agents, Freight Forwarders On Eto App 

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In a concerted effort to tackle racketeering and reduce inflated transportation costs in the Nigeria’s seaports, Trucks Transit Parks Ltd. (TTP) has trained Licensed Customs Agents and Freight Forwarders on the use of its Ètò electronic call-up system.
The training was held recently at Customs Processing Centre (CPC) Auditorium, Apapa, Lagos, in collaboration with the Nigeria Customs Service (NCS) and supported by the leadership of the Joint Association of Licensed Customs Agents and Freight Forwarders (JALCAFF), Apapa Command.
Speaking at the event, Comptroller Babatunde Olomu expressed appreciation to TTP for facilitating the training and emphasized the need for customs agents to take personal ownership of the Ètò booking process.
“I want to thank TTP for this impactful training. I encourage all customs agents to begin doing their own bookings directly. By doing so, they can take back power from the unscrupulous elements exploiting their lack of knowledge, selling tickets at highly inflated prices,” Olomu declared.
He noted that empowering agents with hands-on training was key to dismantling racketeering networks that have plagued access to the ports and frustrated efficient logistics processes.
Also speaking, the Chairman, Apapa Chapter of the Association of Nigerian Licensed Customs Agents (ANLCA), Chief Emeka Chukwumalu, said the engagement was critical to the ongoing push to reduce cargo transportation costs and ease business operations at the Apapa Port.
According to a freight forwarder, “The training is basically for us to have awareness of the operations of the Ètò call-up system through TTP. We also want to brainstorm on ways to reduce the high cost of cargo transportation in Apapa Port.
“This training opened our eyes to how simple it is to book tickets ourselves. We now know the right steps to follow and how to avoid falling victim to fraudsters.”
Earlier, Head of Operations at TTP, Mr. Irabor Akonoman, talked on common misconceptions about ticket pricing, reaffirming that the cost of Ètò bookings had remained consistent since its inception.
“The official price remains the same since inception. What people are paying higher amounts for is the manipulation by racketeers”.

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NECA Holds MSME Fair To Drive Growth 

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Towards strengthening small businesses and promoting a more supportive regulatory environment, the Nigeria Employers’ Consultative Association (NECA) says it will hold the 2025 edition of its flagship MSMEs Fair on Tuesday (May 6, 2025).
The event, themed, “Galvanising MSMEs for Economic Growth and Stability”, will take place at NECA House in Lagos.
According to NECA’s Director-General, Mr Adewale Smatt Oyerinde, the fair seeks to provide micro, small, and medium enterprises with essential tools, resources, and strategic networks to thrive in Nigeria’s challenging business climate.
He emphasised the vital role MSMEs play in national development, describing them as the “lifeblood of Nigeria’s economy.”
Oyerinde noted that the fair is designed to offer entrepreneurs practical solutions to navigate economic uncertainties, regulatory hurdles, and business scalability issues.
A major attraction of this year’s event is the keynote address by the CEO of FATE Foundation, Mrs. Adenike Adeyemi, a prominent advocate for MSME development.
She is expected to share transformative insights on innovative strategies for sustaining and growing small businesses in Nigeria.
A unique feature of the fair will be interactive sessions with key regulatory bodies. Entrepreneurs will engage directly with agencies responsible for licensing, compliance, taxation, and business registration.
NECA said these sessions aim to demystify bureaucratic processes and foster a more enabling business environment.
It also said the fair will provide a platform for entrepreneurs to exhibit their products and services, connect with potential investors, and explore new markets.
It added that participants would gain critical knowledge on digital transformation, access to finance, and strategies for sustainable business growth.
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· NECA stressed that the fair aligns with its broader mission of promoting enterprise development and economic resilience.
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· “By empowering MSMEs with the right support and information, the organisation aims to stimulate job creation, innovation, and long-term economic stability”, NECA said.
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· The 2025 MSMEs Fair is expected to attract a wide range of stakeholders, including financiers, tech experts, regulators, and industry leaders, all united in advancing the growth of Nigeria’s MSME sector.

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Over 2m Passengers Board Blue Rail Train – Commissioner 

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The Lagos State Commissioner for Transport, Mr Oluwaseun Osiyemi, says over two million passengers have been transported on the Blue Line Rail since its launch, while state-run buses move an average of 42,000 commuters daily.
Osiyemi, who disclosed this during the Year 2025 Ministerial press briefing held at the Bagauda Kaltho Press Centre, Alausa, on Tuesday, noted that the Lagos State Transport Policy, launched in May 2024, was now in its implementation phase, focusing on inclusivity, safety, affordability, and sustainability.
“On rail development, Phase One of the Blue Line (Marina to Mile 2) has served over two million passengers, with Phase Two (Mile 2 to Okokomaiko) in progress.
“Phase One of the Red Line (Agbado to Oyingbo) is now operational with eight stations and additional rolling stocks procured, while Phase two (Oyingbo to link Blue Line at National Theatre) is underway”, he said.
The Commissioner said in the state-owned bus operations, over 60 million commuters have been served since 2019, with daily ridership exceeding 40,000.
He also said plans were on to deploy new buses with Quality Bus Corridors under construction, adding that the Abule=Egba Bus Terminal had also been commissioned.
“For water transport, 15 locally-built Omibus Ferries have been launched and are in operation, with the Ijegun Egba Terminal now open.
“The OMI EKO project, in partnership with the French Development Agency (AFD), will deliver 25 terminals and 78 electric ferries.
“Over 280,000 passengers have used ferry services in the past year, and 12 boats have been upgraded to meet safety standards”, he said.
On road infrastructure and traffic management, the Commissioner said 49 junction improvement projects had been completed, including ongoing ones at Ikorodu, Iju, as well as Allen-Opebi-Toyin axis.
He added that solar-powered Traffic Signal Lights, road markings covering 67.9km, new medians, laybys, and 3,941 parking lots had also been provided.
Additionally, Osiyemi announced that the deployed Automatic Number Plate Recognition cameras had detected over 470,000 traffic violations and that the Vehicle Inspection Service issued over one million roadworthiness certificates.
He also said that the Lagos State Drivers’ Institute trained more than 32,000 drivers in the past 13 months.
The event marked the second anniversary of Governor Babajide Sanwo-Olu’s second term, showcasing major strides in the transport sector under the THEMES+ agenda.

Nkpemenyie Mcdominic, Lagos

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