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Curbing The NAICOM Cartel And Its Cut-Throat Motor Insurance

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Curbing The NAICOM Cartel And Its Cut-Throat Motor Insurance

Curbing The NAICOM Cartel And Its Cut-Throat Motor Insurance

By

Felix Oboagwina

 

 

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As last year drew to a close, the 58 insurance firms in Nigeria under the umbrella of the National Insurance Commission (NAICOM) served notice that minimum Third-Party subscription for motor vehicles would no longer cost N5,000 but N15,000 beginning from this New Year. Some years ago, they charged N1,000 as minimum payable on motor insurance.

 

 

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Contrast with the current debate on the social media about MultiChoice serving a notice of increase on GOtv and DSTV subscribers. The increase ranges from 16 percent to 22 percent. Despite this, people are shouting BLUE MURDER! Subscribers are calling for the cable TV firm to be skinned or beheaded, saying MultiChoice would not dare such in its home headquarters, South Africa. Last time MultiChoice tried it, the matter went as far as the National Assembly.

 

 

 

 

 

 

 

This same National Assembly now looks the other way with the new insurance premiums. What is the cable TV’s 22 percent increment, compared to 200 percent by NAICOM? What insurers have done is brazen and indecent! To increase the minimum Third-Party motor insurance to 300 percent is not only unreasonable it is draconian. It is an act of impunity. It is extortionist, insensitive, inconsiderate, untimely, ill-advised, selfish and self-serving. It panders to the unbridled greed of industry operators. The brazenness is insulting. In short, the hike is highly inconsiderate, especially in this era of scarce and expensive fuel and an economy still reeling from the effects of the COVID-19 pandemic.

 

 

 

 

 

 

Yet insurers blame the N10,000 increment on “current economic realities.” Not acceptable!

 

 

 

 

There are an estimated 13 million vehicles in Nigeria, of which only some 3 million have been captured in the insurance net. Instead of seeking ways to lure the noncompliant 10 million vehicle-owners to buy into insurance, insurers want to milk conformists to death. Where will patrons accommodate this increase, in a country with a minimum wage of N30,000?

 

 

 

 

 

Of course, those earning minimum wage do not own vehicles. However, they use transportation. When the prices of vehicle inputs like fuel, tolls and spare parts become costlier, vehicle owners simply transfer them to commuters through higher fares. Adding a costlier insurance to the motor value chain amounts to subjecting vehicle owners to double, nay multiple, jeopardy, with the spiral effect translating to higher transport fares and costlier freighting fees.

Imagine if other elements in the motor driving particulars too decide to follow suit. It means that drivers and owners would pay three times on:

1.       Vehicle Licence

2.      Road Worthiness

3.      Hackney Permit

4.      Drivers Licence

5.      Customs Papers

6.      Tinted Glass Permits (which the Police Force deserves kudos for waiving) and other council and business locations tickets.

 

 

Curbing The NAICOM Cartel And Its Cut-Throat Motor Insurance

 

 

 

Someone said, “Insurance is the sale of promises. The ‘customer’ pays money now; the insurer promises to pay money in the future if certain events occur. Sometimes, the promise will not be tested for decades.” Sometimes the promise will not be even tested forever! In fact, only about 15 percent insurance subscribers ever bother to make accident claims. The greater proportion of claimants comes from corporate policyholders. Thus, the insurance firm is the greater beneficiary in the relationship because the individual motor policyholder would just lick his wound and settle the bills jejely.

Everyone knows that the Third-Party insurance on vehicles is just to fulfil all righteousness –a legal requirement with which transport owners must comply. In Nigeria here, they refer to it as, “Let-My-People-Go Insurance,” or “Let-Me-Pass Insurance.” Third-Party is the paper drivers obtain just to satisfy the police. That’s all!

In case of accident or damage to Third-Party vehicles, insurance customers hardly bother to engage themselves in the stress of filing claims. The red tape and bureaucracy is so organised as to be stressful and time-wasting. Therefore, claimants simply pay from their pockets. Commercial bus and employed drivers are a common sight, kneeling and prostrating on the ground for the mercy of those whose cars they bash. Hence, the insurance firm reaps from doing NOTHING!

Since owning personal cars for over two decades now, I have been involved in accidents. Not once have I made a single claim! In fact, apart from an Insurance Broker in my church, no one I know has EVER made a claim. Not one! In fact, late last year, someone in my neighbourhood had his SUV crushed by a falling container. The owner of the offending trailer came privately to plead for the victim to accept N7 million for a vehicle worth N12 million. Family members told the victim to thank God for surviving the ordeal and accept the money. That is how we roll.

As of 2019, the Nigerian industry ranked 62nd in the world with $1.64 billion premium. That makes it an industry worth some N1.2 trillion. In 2021, the unaudited Insurance Industry performance in Nigeria showed that insurance firms made a gross income of N630 billion, and posted N238.05 billion as net expenditure. Talk about a fertile cash cow.

Insurers benefit colossally from the statutory laws making vehicle insurance cover mandatory for cars, trucks and motorcycles. The Insurance Act 2003 mandates all motorists to carry the minimum of a Third-Party Motor Insurance Policy. Section 68 of the 2003 Insurance Act stipulates:

“No person shall use or cause or permit any other person to use a motor vehicle on a road unless a liability which he may thereby incur in respect of damage to the property of third parties is insured with an insurer registered under this Act.”

The law varies in the US, where most states, require vehicles to carry motor insurance. However, there are two US states where it is not mandatory –Virginia and New Hampshire. Countries like New Zealand, Saudi Arabia and Manila do not require a compulsory insurance for vehicles to ply the roads.

It is compulsory in Britain too, hence, we see that mandatory insurance is part of our colonial heritage. This colonial heritage must go now. As our colonial hangover, motor insurance is being weaponised for inordinate extortion, unbridled greed and excessive profiteering by insurers operating under a NAICOM cartel.

Time has come to break up this cartel. With NAICOM calling the shots, it amounts to a monopoly, which should not hold in a free enterprise and deregulated economy. NAICOM is operating like a cartel. We consumers reject being milked by this privileged cartel. Nigeria should make insurance OPTIONAL. This Ninth National Assembly or the coming Tenth National Assembly should make this a matter of urgent public importance. Legislators should change the law to deregulate insurance or scrap this motor insurance law. The NASS should tweak the Insurance Act. Expunge, reframe, rephrase, rewrite restructure or remove that part of the law that makes it compulsory for vehicles to carry an insurance paper to travel the roads. If vehicles MUST be insured, the law should permit no more than a marginal increase, going forward. Motor insurance premium should take a cue from MultiChoice –no increment should be over 20 percent.

Legislators need to make a law to make motor insurance deregulated, optional or non-exploitative. They would be writing their name in gold.

(OBOAGWINA IS AN AUTHOR AND JOURNALIST, AND MAY BE REACHED VIA: foboagwina@gmail.com)

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COURT DISMISSES LAND SUIT AGAINST NIGERIAN BREWERIES

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COURT DISMISSES LAND SUIT AGAINST NIGERIAN BREWERIES

COURT DISMISSES LAND SUIT AGAINST NIGERIAN BREWERIES

 

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The Imo State High Court of Oru Judicial Division sitting at Mgbidi and presided over by his Lordship Hon. Justice Onyekachi has dismissed Suit No. HOU/71/2019, which was instituted by Chijioke Nwadika against
Nigerian Breweries Plc in the said suit, the claimant Mr. Chijioke Nwadika prayed the court to declare that the entire Ama Ogbejelem farm land at Awo-omamma in Imo State where Nigerian Breweries Plc constructed it’s drainage for waste disposal at its Awo-omamma
Breweries plant belongs to him and his family.

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COURT DISMISSES LAND SUIT AGAINST NIGERIAN BREWERIES

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The claimant also sought the court to order Nigerian Breweries Plc. to remove the drainage system from the land and pay the sum of N500,000,000 (Five Hundred Million Naira) as damages for unpaid
royalty, and destruction of the family’s economic trees as a result of disposal of waste through the drainage that runs through the claimant’s
farm land as claimed.

The claimant Mr. Chijioke Nwadika was represented through-out the
Suit by his counsel Damian Uneze Esq. who urged the court through his
submission to grant the reliefs. Dr A.A Orunkoya Esq counsel to Nigerian Breweries Plc vehemently challenged the claims of the claimant and urged the court to dismiss the suit on grounds that the
claimant failed to prove with empirical evidence the ownership of the and where Nigerian Breweries is situate or any part of it where the
drainage system of Nigerian Breweries passed.

It was his contention
that the claim of Mr. Chijioke Nwadika is predicated on tittle; hence the onus was on him to prove ownership of the land before he can be
entitled to any other relief or claim for damages connected to the land.
Dr. A.A Orunkoya Esq. further informed the court that the claim of Mr. Chijioke Nwadika was statute barred as the entire suit was centered on
a contract he purported his father had with Nigerian Breweries in 1983
whereas the action was instituted in 2019 in breach of limitation of
Action Laws that requires actions founded on breach of contract to be
instituted within six years.
The trial judge Hon. Justice Onyedikachi after considering the argument
and evidence put before the court dismissed the suit in favour of Nigerian Breweries Plc. Dr. A.A. Orunkoya Esq defence counsel to
Nigerian Breweries Plc while addressing the press after the judgment,
reiterated that the judgment has further rekindled the hope of investors and corporate organizations to invest in rural communities.

He stated that private companies are usually sued by unscrupulous
persons in their host communities thereby discouraging investors.
Dr. A.A Orunkoya Esq. further stated that the suit of Mr. chijioke
Nwadika was capable of frustrating the continuous existence of the Nigerian Breweries in Awo- Omamma but because the claims lack
merit, the court appreciated the issues of law that was canvassed as a defence and entered judgment in favour of Nigerian Breweries by dismissing the suit.

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Palliatives: Dangote donates 80,000 bags of rice to Lagos residents

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Palliatives: Dangote donates 80,000 bags of rice to Lagos residents

 … Sanwo-Olu says Dangote prioritize Nigerians’ welfare above profit

 

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The Aliko Dangote Foundation, (ADF) has flagged off the distribution of 80,000 10kg bags of rice to the vulnerable in Lagos state.

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President of Dangote Group and Chairman of the foundation, Aliko Dangote, noted that the gesture is part of the over one million 10kg bags of rice that would be distributed to reach one million vulnerable people in the 774 local government areas of the country.

 

 

 

 

Speaking at the flag off in Alausa, Dangote, said the distribution of the 80,000 bags of 10kg rice is another demonstration of the foundation’s commitment to upholding the values of compassion and solidarity that are at the core of humanity.

Noting that the distribution of the rice is in addition to the daily distribution of 12,500 loaves of bread in Lagos, Dangote stressed that with the initiative, the foundation aspires to ameliorate some of the burdens faced by vulnerable communities across Lagos State.

In his remarks, Governor of Lagos state,  Babajide Sanwo-Olu, applauded the many initiatives of Dangote to ameliorate the sufferings of Nigerians, while praiseing him for showing compassion to the needy in the society.

Sanwo-Olu said the gesture of distribution of 80,000 bags of 10kg rice shows that the leadership of the Foundation prioritize the welfare of the people beyond the pursuit of profit and accumulation of wealth.

The Governor said: “Aliko Dangote is a Nigerian that has chosen to be different. You have choices but you have made the right one which is caring for the vulnerable. I appreciate Mr. Aliko Dangote for extending his kind gestures to the people at the bottom of the pyramid and we are grateful for supporting us in government. There is a lot of global disruption in different parts of the world, and it is a tough time to be in a position of leadership,” he said.

While encouraging other wealthy Nigerians to emulate Dangote, the Governor said the distribution of the rice would support the initiative of the state in addressing the effects of the economic hardship.

Justifying the food intervention in Lagos, Dangote said: “While our traditional Ramadan food distribution has been focused on the Muslim Community, we recognize that the current circumstances where a significant proportion of Nigerians across the nation are experiencing severe hardship due to the prevailing high prices of food, require that we broaden our program to cover communities of all faiths. This is why we are extending the Ramadan initiative to cover all the thirty-six states and the Federal Capital Territory as a testament to our commitment to supporting our communities in line with our core values and the spirit of the Holy Month of Ramadan,” he said.

The CEO of the ADF, Zouera Youssoufou, said the Foundation is partnering credible NGOs, civil societies, religious bodies among others to ensure the donations go to the most vulnerable in Lagos State.

She said the Foundation is guided by a vision of empowering Africans to achieve their self-actualization and full potential as it believes that every individual, regardless of their circumstances, deserves the opportunity to thrive and succeed.

“In times of hardship, it is imperative that we stand together as one nation, one community, extending a helping hand to our brothers and sisters in their time of need as we have done with our female empowerment programme in Lagos State which targeted 40,000 (Forty thousand) disadvantaged women,” she added.

Group Executive Director Commercial Operations at Dangote Industries Limited (DIL), Fatima Aliko-Dangote, noted that the flag off in Lagos is a follow-up to the 120,000 bags distributed in Kano on Saturday, said the intervention is targeted to reach the 774 local government areas in Nigeria.

“We have been doing this for a while but we didn’t publicize  it because  our chairman  believes  this is between him and God but this year we decided  to publicize  it so that we can encourage  and inspire others to do so.

“There are many other things the Dangote foundation is also doing. We are also serving 2,500 breads all over Lagos daily. We started this in 2020 during COVID-19. Also in our hometown in Kano, we have been doing breakfast, lunch and dinner for the past 35 years. The foundation has invested in many things. Years back, we gave women some money to be able to invest in their businesses,” she said.

Speaking further, Dangote noted that Lagos state holds a special place in the hearts of the Group, hosting two of its major investments – Dangote Petroleum Refinery and Dangote Fertiliser Plant.

He disclosed that the Dangote Group is also working on the nutrition agenda and has made significant strides in food fortification, investing in iodized salt and vitamin A fortified sugar. He stressed that the Group actively promotes food fortification within the Nigerian food industry and is exploring fortification methods for staples like rice and wheat and bouillon cubes to help ensure improved nutrition nationwide.

“At the heart of the Aliko Dangote Foundation lies a deep-seated belief in the importance of nutrition in human capital development. We understand that access to nutritious food is not only a basic human right but also a critical determinant of good health and well-being. By providing these modest bags of rice to those in need, we are not only looking to alleviate immediate hunger, but also investing in the long-term health and prosperity of our communities,” he added.

While commending Lagos state governor, Babajide Sanwo Olu as a Governor with a penchant for overcoming adversity and enormous capacity in handling emergencies, Dangote urged other well-meaning individuals and corporate organisations to emulate the efforts to support the less privileged in the communities, especially during Ramadan, which is a time of self-reflection, empathy, and charity.

Palliatives: Dangote donates 80,000 bags of rice to Lagos residents

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NIFESAF ESUT Lagos Holds 4th Edition Of Business, Career Exposition

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The Lagos State Alumni Fellowship of Nigerian Fellowship of Evangelical Students (NIFESAF) has held the fourth edition of its Business and Career Exposition programme themed ‘Maximizing Technology and Strategic Customer Loyalty For Sustainable Business Growth In Today’s Economic Condition’ on Saturday, 23rd of March, 2024 in Lagos.

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The programme which was basically for Small and medium-sized enterprises since its inception has served as a major platform for the promotion of Nigerian-owned businesses and created several opportunities for SMEs to thrive and have access to the world through the global reach of NIFESAF ESUT.

Just like the previous editions, the fourth edition wasn’t any different; it featured an avalanche of exhibitions by several Nigerian businesses with guests who were ready to patronize them and a huge platform to publicize their businesses.

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Some of the businesses involved in the exhibition include Finet Mobile, Purch Gadgets, Congratulations Corporate Events, Exceptional Intensive Vocational Training, Farmskills Limited, Jigsimur health drink, De Luxe flour, Royal Almonds, Ifiefruit, Ihubest trading enterprise, K-shape fashion designer, Zara Caps and Hats, Chee Havillah Royal Services Ltd, Lowan Enterprises, Mace Ventures, Arif Bureau, Davis Exotic Homes, Whiztech Global Ltd, Earthblend flavours, to mention but a few.

Speaking at the event, the Chairman of the Global Body— Nigerian Fellowship of Evangelical Students (NIFES) ESUT Alumni Fellowship, Mr. Fred Nnadike, said the essence of the business exhibition was to support and build a community of excellent, Christians who would be role models in their respective careers.

Nnadike who urged believers under the umbrella to keep the faith alive equally charged them to uphold ethical standards, sound corporate governance, and avoid sharp practices in their respective professions and business endeavors as ardent followers of Christ.

“We want to encourage what we produce and link our entrepreneurs to the global space. SMEs are indispensable for economic growth and development. The government across board should do something urgently to revive the economy by making the environment conducive for businesses to thrive” he implored.

On his part, the Lagos State Chapter Chairman of the Fellowship, Mr Henry Nnadike, said the leadership of NIFESAF has often reminded the government that MSMEs are still the engine room of every strong economy.

“Government must address multiple taxation, epileptic power supply, dilapidated road network, and general scorching economic environment. Governments must be transparent in their reforms and interventions. Besides, we need informed ideas, programs, and policies that must be designed by the best brains. The government should learn to put the interest of the masses above their personal interest for posterity’s sake” he urged.

Similarly, the Vice Chairman of NIFESAF, Lagos Chapter, Mrs. Chika Idalah–Allison, called on the state and federal government to partner with NIFESAF and related organizations which are poised to promote skills and craftsmanship, particularly for youths.

“Government should partner with organizations promoting skills acquisition, innovation, human capital development, and creative industry. In NIFESAF we are under the mandate to support every entrepreneur under its umbrella even beyond.

Idalah – Allison told newsmen that she was able to travel to different countries for business purposes, not by her academic certifications but by the salability of her skills in artwork and design.

“Nigeria is our only country, we must build it because the world is waiting for us to step out, and that is what we must all do collaboratively, however, our education curriculum should be designed fit- for -purpose” she asserted.

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