Business

NAICOM Tasks Insurers On Professionalism

Published

16 years ago

October 11, 2009

The National Insurance Commission (NAICOM) has called on insurance practitioners to be professionals to the core.

Mr. Fola Daniel, the commissioner for insurance (CFI) who made this assertion noted that insurers’ words must be their bonds.

On the Market Development and Research Initiative (MDRI) being pursued by NAICOM, Daniel stated that if insurance operators must propel the people to insure under the compulsory insurance programme, then underwriters must not under any guise fail to meet genuine claim settlement, rather their word must be their bond.

In his words, “The relevance of ethics and integrity to insurance business cannot be over emphasised. Where they exist, it breeds trusts, confidence and creates a boost in business generation.”

“The non-existence of these virtues amongst some practioners has helped in giving the industry a negative image. We cannot continue in this path any longer. There must be a change of attitude and behavior amongst practitioners. We cannot continue to do the same thing all the time and expect a different a different result.”

He noted that in all of these, operators must key in to discipline and professionalism as the Nigerian populace are looking up to insurance industry as an important bastion of security in the face of collapse being witnessed in other financial services sector, “we must not be a harbinger of corruption and improper dealings.”

“For those who will continue to relate as if anything and everything is possible, let me warn that Naicom will deal decisively with aberration and will also collaborate actively with other regulatory and security agencies to curb market misbehaviour,” Daniel reiterated.

Naicom has warned that under the current reforms taking place in the insurance industry, it would no longer condone a situation where the managing director of an underwriting company has on the sideline a private broking firm as well as a loss adjusting firm.

“This is unethical and it should not be encouraged. There are cases of chief executive officer of an underwriting firm having a broking firm, giving businesses to the company where he is CEO, yet there are issues of outstanding premiums. This will soon be a thing of the past”.

Mr. Sunday Thomas, Naicom director, in charge of inspection who made this notion said in most cases, the success of the managing director’s privately owned companies depend largely on at least 80 per cent of his time and energy. He said this was clearly a case of conflict of interest and divided loyalty and it is unethical.

Henceforth, he said, any managing director that must own a broking firm or loss adjusting firm would be compelled to disclose this to the board of directors of the company where is CEO so that if there are issues of outstanding premiums arising from such broking firm, the board would be able to knew the source of their problem.

He said this is a major source of unethical practice and should therefore not be encouraged.

Other observed unethical practices, he said, include inadequate rating, withholding of premium/commission, claims falsification, deliberate creation of information gap between the management and board as well as falsification of returns to the regulator.

Mr. Thomas said, by the time the commission was through with the reform in the industry, all of these would belong to history books.

He said with nine months gone in the year, not up to half of insurance companies operating in the country have submitted their 2008 financial result to the commission. “This is because they find it convenient to pay the paltry fine of N5,000 per day for as long as the result is delayed,” he said.

Under the current reform, he revealed, the fine would be made very stiff. He said it could be as high as N100,00 per day and the deadline for filing the result could be made shorter. He, therefore, advised all operators to sit up so as not to be caught on the wrong side of the law.

Business

FIRS Clarifies New Tax Laws, Debunks Levy Misconceptions

Published

1 day ago

December 5, 2025

The Tide

The Federal Inland Revenue Service has said that Nigeria’s newly enacted tax laws are designed to strengthen economic competitiveness, attract investments, and improve long-term fiscal stability.

The agency also clarified that the much-debated four per cent development levy on imported goods is not a new or additional tax burden, but a streamlined consolidation of several existing levies.

According a statement released Wednesday, one of the most misunderstood elements of the new tax framework is the four per cent development levy with the agency explaining that the levy replaces a range of fragmented charges — such as the Tertiary Education Tax, NITDA Levy, NASENI Levy and Police Trust Fund Levy — that businesses previously paid separately.

This consolidation, it said, reduces compliance costs, eliminates unpredictability and ends the era of multiple agency-driven levies. The law also exempts small businesses and non-resident companies, offering protection to firms most vulnerable to economic shocks.

Another major clarification relates to Free Trade Zones. Earlier commentary had suggested that the government was rolling back the incentives that have attracted export-oriented investors for decades. However, the reforms maintain the tax-exempt status of FTZ enterprises and introduce clearer guidelines to preserve the purpose of the zones.

“Under the new rules, FTZ companies can sell up to 25 per cent of their output into the domestic market without losing tax exemptions. A three-year transition period has also been provided to allow firms to adjust smoothly.

“Government officials say the reforms aim to curb abuses where companies used FTZ licences to evade domestic taxes while competing within the Nigerian market”, it said.

With the new measures, Nigeria aligns with global FTZ models in places like the UAE and Malaysia, where the zones function primarily as export hubs for logistics, manufacturing and technology.

The introduction of a 15 per cent minimum Effective Tax Rate for large multinational and domestic companies has also been met with public concern. But the FIRS notes that this policy aligns with a global tax agreement endorsed by over 140 countries under the OECD/G20 framework.

Without this adoption, Nigeria risked losing revenue to other countries through the “Top-Up Tax” mechanism, where the home country of a multinational collects the difference when a host country charges below 15 per cent. By localising the rule, Nigeria ensures that tax revenue from multinational operations remains within its borders.

Business

CBN Revises Cash Withdrawal Rules January 2026, Ends Special Authorisation

Published

1 day ago

December 5, 2025

The Tide

The Central Bank of Nigeria (CBN) has revised its cash withdrawal rules, discontinuing the special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly, with effect from January 2026.

In a circular released Tuesday, December 2, 2025, and signed by the Director, Financial Policy & Regulation Department, FIRS, Dr. Rita I. Sike, the apex bank explained that previous cash policies had been introduced over the years in response to evolving circumstances.

However, with time, the need has arisen to streamline these provisions to reflect present-day realities.

The statement said the new set of cash-related policies is designed to reduce the cost of cash management, strengthen security, and curb money laundering risks associated with the economy’s heavy reliance on physical currency.

“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.

“With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,”

“Effective January 1, 2026, individuals will be allowed to withdraw up to N500,000 weekly across all channels, while corporate entities will be limited to N5 million”, it said.

According to the statement, withdrawals above these thresholds would attract excess withdrawal fees of three percent for individuals and five percent for corporates, with the charges shared between the CBN and the financial institutions.

Daily withdrawals from Automated Teller Machines (ATMs) would be capped at N100,000 per customer, subject to a maximum of N500,000 weekly stating that these transactions would count toward the cumulative weekly withdrawal limit.

The special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly has been discontinued.

The CBN also confirmed that all currency denominations may now be loaded in ATMs, while the over-the-counter encashment limit for third-party cheques remains at N100,000. Such withdrawals will also form part of the weekly withdrawal limit.

Deposit Money Banks are required to submit monthly reports on cash withdrawals above the specified limits, as well as on cash deposits, to the relevant supervisory departments.

They must also create separate accounts to warehouse processing charges collected on excess withdrawals.

Exemptions and superseding provisions
Revenue-generating accounts of federal, state, and local governments, along with accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks, are exempted from the new withdrawal limits and excess withdrawal fees.

However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.

The CBN clarified that the circular is without prejudice to the provisions of certain earlier directives but supersedes others, as detailed in its appendices.

Business

Shippers Council Vows Commitment To Security At Nigerian Ports

Published

1 day ago

December 5, 2025

The Tide

The Nigerian Shippers Council (NSC)has restated its commitment towards ensuring security at Nigerian seaports.

Executive Secretary/Chief Executive Officer of the Council, Dr Pius Akuta, said this in Port Harcourt, while declaring open a one day workshop organized by the Nigerian Shippers Council in collaboration with the Nigerian police( Marin Division).

Theme for the workshop was ‘Facilitating Port Efficiency; The strategic Role of Maritime police “

Akuta who was represented by the Director, Regulatory Services, Nigerian Shippers Council, Mrs Margeret Ogbonnah, said the workshop was to seek areas of collaboration with security agencies at the Ports with a view to facilitating trade

Akuta said the theme of the workshop reflects the desire of the council and the Nigerian police to build capacity of police officers for better understanding and administration of their statutory roles in the Maritime environment.

He said Nigerian seaports has constantly been reputed as one of the Port with the longest cargo dwell in the world, adding,”This is so, because while it takes only six hours to clear a containerized cargo in Singapore Port, seven days in Lome Port, it takes an average of 21 days or more in Nigerian Ports” stressing that this situation which has affected the global perception index on Ease of Doing Business in Nigerian seaports must be addressed.

Akuta said NSC which is the economic regulator of the Ports has the responsibility of ensuring that efficiency is established in the Ports inorder to attract patronages.

“Pursuant to its regulatory mandate, the NSC has been collaborating with several agencies to ensure the facilitation of trade and ease of movement of cargo outside the Ports to avoid congestion”he said.

Also speaking the commissioner of police, Eastern Port Command, Port Harcourt, CP Tijani Fakai, said Maritime police has played some roles in facilitating Ports efficiency.

He listed some of the roles to include ensuring security and crime prevention at the Ports, checking of illegal fishing activities at the Ports, checking of human trafficking and drug smuggling and prevention of fire incident at the Ports.

Represented by ACP, Rufina Ukadike, the CP said police at the Ports have also helped in the decongestion and prevention of unauthorized Anchorage.

He commended the Nigerian Shippers Council for the workshop and assured of continuous collaboration.

Speaking on the dynamics of cargo handling, Deputy Controller of customs, Muhydeen Ayinla Ayoola, said the launching of electronic tracking system and dissolution of controller General Taskforce has helped to ensure efficiency at the Ports.

Ayoola who represented the custom Area Controller Port Harcourt 1 Area command, however raised concerned over rising national security threat , which according to him has affected efficiency at the Ports.

John Bibor