Author: Chike Ozohili

The National Insurance Commission (NAICOM) has affirmed that the oil and gas sector will no longer be subjected to the risk of product overpricing due to the removal of fuel subsidy.

Speaking in Lagos on building local content, the Commissioner for Insurance of NAICOM, Mr. Sunday Thomas said the federal government’s local content initiative is part of its plan to develop the human and material resources of its oil and gas sector.

“The intention of synergy is more tilted towards encouraging preventive, detective; as well as corrective and compensatory regulatory controls.

“It is beneficial, to also state, that necessity is on us to ensure that risks are accurately priced and professional advice is given to ensuring entities, especially in the Oil and Gas space, as it poses a vantage position to avoiding overpricing of products, underrating of risks, negligent omission of necessary covers and its consequential effect on avoidable pressure and burden on finances.

“However, the company’s exposures that were not accurately reviewed could deter incentivization from the regulator that could be provided in the future to compensate for risk improvements deployed to reduce potential environmental liabilities, or the advantages enjoyable by deploying capital on the transition from high-based carbon energy and its environmental impacts.

“This is in contemplation with the pressure to reduce Green-House Gas (GHG) emissions and transition to Clean and Renewable Energy.

“Also, the disclosure and reporting requirement of Section 49 of the Nigeria Oil and Gas Industry Content Development (NOGICD) Act is to ultimately enhance regulatory decisions that will benefit the Oil and Gas Industry and the nation at large,” Thomas said.

The African Development Bank (AfDB) Group and the World Bank have agreed to collaborate to identify key areas for intervention that will transform Africa.

The agreement comes after a productive working meeting in Abidjan, a follow-up to a previous between World Bank President Ajay Banga and AfDB’s President, Akinwumi Adesina.

The agreement was made by Senior Vice-President of AfDB, Bajabulile Tshabalala and a delegation from the World Bank led by its Managing Director for Operations, Anna Tshabalala

In a statement on its website, AfDB says the collaboration will strengthen efforts to tackle poverty and climate change, develop various sectors, including energy and agriculture, and deal with pandemics.

The AfDB’s Senior Vice-President provided an update on the Bank Group’s top priorities for the continent, known as the High 5s.

Tshabalala was accompanied by the Vice-President for Regional Development, Integration and Business Delivery Marie-Laure Akin-Olugbade and several of the Bank Group’s senior managers.

She said the benefit of the meeting was to strengthen efforts already made to tackle poverty and climate change and build young people’s capacity for promoting small and medium-sized businesses.

“The meeting also aims to develop the energy, agricultural and other sectors, and help deal with future pandemics,” she said.

Tshabalala explained that the Bank was in partnerships with other institutions, such as Afreximbank, the West African Development Bank and others, for better synergies on the ground.

She said: “A few months ago, we received the visit of the incoming president of the World Bank, and since then, we have noted that the two presidents have regular exchanges.

“Obviously, I think the expectation is that they will come up with the concrete plans and objectives for cooperation and partnership, because I think this is what our shareholders are looking for.

“We want to strongly articulate our joint effort with the World Bank, because the two of us have a unique position on the continent; we do the most development work.

“You know our relationship is going from strength to strength.”

Meanwhile, the World Bank’s Managing Director for Operations lauded the Bank Group’s dedication to fostering synergies among development initiatives in Africa.

Bjerde elaborated on how projects in key areas of focus, funded by the World Bank, could serve as the cornerstone for future partnerships.

She said these included addressing recent crises and prioritising medium-term development goals such as poverty reduction, equitable growth, and tackling climate change.

“Our precedent is huge, which is why I also want to make sure, during my visit, that we spend some time together.

“And I look forward to seeing what we can do to bring real development ultimately to a higher level. I think we’re all being called upon to become better and bigger,” Bjerde said.

In a bid to ensure that the initiatives of the Revised Capital Market Master Plan 2015 – 2025 (RCMMP) which is the blueprint for harnessing the opportunities for economic growth and development in the country are copiously implemented, the Securities and Exchange Commission (SEC)is set to hold a hybrid workshop on ESG to sensitize market stakeholders on the concept of sustainability.

The workshop which is titled ESG and Sustainable Finance – The Future of Investment is scheduled to hold on July 27at the Radisson Blu Hotel, Victoria Island, Lagos.

Speakers at the workshop include Director General of the SEC, Mr. Lamido Yuguda, MD/CEO Financial Derivatives Company Mr. Bismarck Rewane, and Vice Chairman Financial Centre for Sustainability Lagos Prof. Doyin Salami.

Others are MD Central Securities Clearing System Mr. Jalo-Waziri, CEO NGX Mr. Temi Popoola, MD FMDQ Mr. Bola Onadele Koko, Tariye Gbedegesin, Nadine Rose, and Adrian Mill.

Moderators at the event are CEO Chapel Hill Denham Mr. Bolaji Balogun, Partner PWC Rukaiya El-Rufai and Dr. Afolabi Olowookere.

According to the capital market regulator, the workshop aims to drive sustainable finance instruments issuances, create awareness on climate change mitigation and adaptation, and connect projects that address climate risks with potential investors, advocate for policy incentives and provide access to funding for climate smart initiatives. 

“The workshop is premised on one of the strategic themes highlighted in the Revised Capital Market Master Plan which is to create awareness, deploy educational and advocacy campaigns for ESG compliant products.

“The Nigerian capital market, as an integral part of the financial system, is assiduously working to address society’s needs and concerns by undertaking a transformation, driven by initiatives of the Capital Market Master Plan to educate investors on different approaches to sustainable investment, and equally enhance confidence and participation in the market,” the Commission added.

The workshop is in collaboration with the Financial Centre for Sustainability Lagos (FC4SL), a network platform that is leading the development of global standards required to accelerate the expansion of green and sustainable finance, and ARM-Harith Infrastructure Investment Limited, a leading Pan-African infrastructure fund manager based in South Africa.

The target audience for the programme includes public companies, capital market operators, investment professionals, risk management professionals, investors and other stakeholders.

The Federal Competition & Consumer Protection Commission (FCCPC) has warned Nigerians about the resurgence of unapproved digital loan Apps.

A statement by Executive Vice Chairman/CEO of FCCPC, Babatunde Irukera, also notes the duplicity of some loan apps.

“The Commission notes a resurgence in the occurrence of prohibited loan recovery methods and practices in the past weeks. The Commission’s investigations and continuing surveillance demonstrate that the vast majority of the resurging infringements are not by otherwise approved/listed DMLs approved to be on PlayStore and other financial services providers.  

“The violating DMLs have resorted to the use of Android Package Kits (APK) file formats. The illegal DMLs provide links to consumers to visit unregistered websites using their Android devices/phones. In the course of that interaction, consumers’ private information that is otherwise protected and prohibited from access or download by DMLs or their apps is accessed and downloaded. This conduct is prohibited by sundry laws, particularly relevant data privacy protection instruments, and more specifically, the Limited Interim Regulatory/Registration Framework & Guidelines for Digital Lending 2020 of the Commission. 

“In the course of the Commission’s continuing investigation and tracking of these illegally operating DMLs, the Commission has discovered duplicity by at least two otherwise legally registered DMLs on the Commission’s approval list.  The nature of the duplicity is that the DMLs having been approved and placed on the approved list and Playstore, as well as cleared for services by other financial services/institutions, as an alternate channel, and method of engaging in prohibited conduct, also engaged in the use of APK to attract borrowers to a process and practice that is illegal and unregulated.

“The companies or apps so far identified, and for which there is supporting evidence of this malfeasance are Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited. They are the owners of “Getloan” and “Camelloan” respectively, and occupy Nos. 1 and 65 on the Approved List of the Commission, which is available on the Commission’s website. 

“Accordingly, the Commission has now permanently delisted Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited, along with their respective apps – “Getloan” and “Camelloan”. In addition, the Commission has entered an Order to Google Playstore and other payment and financial service providers, permanently prohibiting the provision of any services associated with digital lending to Sycamore Integrated Solutions Limited and Orange Loan and Purple Credit Limited,” the Commission said.

The Commission further insisted that there is no going back on its decision to permanently revoke the approval granted to the App warning that it would not fail to apply the same measures to other violators once they are discovered.    

“In addition, all the information and evidence available with respect to these businesses will be transferred to law enforcement agencies and or any other relevant regulator(s).

“As such, the Commission again advises consumers to exercise restraint and discretion in selecting DMLs and specifically recommends that consumers patronise only DMLs on the Commission’s approved list to diminish, if not eliminate being victims of illegal and prohibited lending and recovery practices. 

“The Commission further advises consumers to consider only DMLs whose apps can be downloaded from Google’s Playstore, as only those have been subjected to regulatory scrutiny and the technology associated with their apps precluded from accessing and downloading private information of consumers.  All other DMLs are operating illegally,” Irukera said.