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NEM Insurance shareholders approve N1.5bn dividend payout



By Philemon Adedeji

The shareholders of NEM Insurance plc have unanimously approved N1.5 billion dividend payout which can be translated to 30 Kobo per N1 ordinary share.

The approval was made at the 53rd Annual General Meeting (AGM) held in Muson Center, Onikan Lagos on Thursday, all resolutions were passed.

Amidst all the challenges faced by the company in 2022 financial year, NEM Insurance performed excellently well such that Gross Premium recorded for the period stood at N33.3 billion, reflecting an increase of 20 per cent over the previous year’s figure of N27.8 billion. In the same vein, N22.1 billion was earned in 2023, while only N19.3 billion was earned on 2021.

The group’s Profit Before Tax (PBT) for the year under review was N5.5 billion and N4.5 billion in 2021, an increase of 21 per cent.

The group balance sheet remained well resilient and structure, as financial assets between 2021 and 2022 increased by 32.6 per cent, while total assets and total equity also improved by 19.9 per cent and 18.7 per cent respectively between two years.

The Group’s Earnings Per Share (EPS), for the year under review was 1.08 while that of the previous year was 0.88, an increase of 22.7 per cent.

The parent Company’s EPS for 2022 and the preceding year has the same percentage increase.

The Shareholders sincerely thanked the management of NEM Insurance for producing good results despite difficult economic downfall, we indeed very grateful and we appreciate the board for consistent in dividend payment and for ensuring generous reward to their shareholders at a very difficult time that no company find it difficult to maintain profitability.

Speaking at the (AGM), the Chairman of NEM Insurance, Dr. Fidelis Ayebae said, “As we are all aware, 2022 was a pre-election year which posed various risk of insecurities and presented diverse uncertainties. Political parties bombarded the entire nation with series of activities were in top gear, from party primaries to campaigns presidential and Gubernatorial elections with great expectations from the elected political office holders to fight corruption, improve security, tackle unemployment, diversify the economy, enhance climate resilience, and boost the living standards of Nigerians, the operating environment is expected to improve soon.

“So much is still being expected as the country’s economy recorded marginal decrease in the Gross Domestic Product (GDP) from 3.40 per cent in 2021 to 3.10 per cent at the end of 2022

“The Non-oil sector accounted for about 95 per cent of the GDP in 2022: Majorly on the back of accelerated activity in the service sector, the information and communications industry, especially the financial services sector, gained momentum in quarter two. The agricultural output witnessed tremendous boost during the year under review despite the climate change and flood in some part of the country

“The Oil and Gas sector performance recorded an increase in the crude oil price in 2023 to USD84.78 against $74.17 per barrel in 2021. However, the external reserve stood at $37.08 billion in2022 against $40.5 billion in 2021, a decrease of 8.7 per cent.”

He added that Nigeria in the emerging market, witnessed low foreign direct investment in the last few quarters of the reporting year following the security challenges in the country and around the globe: impact of Russian/Ukraine war, this further amplified by uncertainties regarding the general election foreign investors’  aversion towards Naira assets which reduced capital importation.

He concluded his speech by appreciating shareholders who have been consistent in their zest to add to the growth of the company are greatly appreciated as well. And to our loyal Brokers, Agents, Re-insurers and the numerous clients, you all greatly appreciated.

Also, the Group Managing Director/CEO of NEM Insurance, Tope Smart, commented that the unusual high cost of living, Russian’s invasion of Ukraine, and the lingering COVID-19 pandemic in parts of China heavily affected global economic activity.

“As expected, global growth shrank 3.3 per cent in 2022: from 5.5 per cent in 2021, the weakest growth Profit since 2001 expect for period of the global financial Crisis and the acute phase of the COVID-19 pandemic. The growth experience in2022 was driven mainly by Asian Economies, the Middle East , North Africa and Indian. Also, while inflation was very intense in most regions, it was less intense in Asian Economies which also benefited from the ongoing reopening dynamics.

“To control inflation, Central Banks Worldwide had to introduce tighter monetary policies while at the same time, they equally struggle to contain potential threats. Many Central Banks increased policy interest rates to contain rising inflation and exchange rate issues. The expectations are for these to continue in to the year 2023.”

He said on the local scene, the Nigerian economy rebounded after the difficult years of COVID-19, growing by 3.5 per cent in the first three quarter of 2023, while year on year growth stood at 3.52 per cent at the end of the 4th quarter of 2022.

“It is important to state that the recovery didn’t vividly impact the original Nigerians given that the main drivers of the growth – oil production services and services which which hardly benefit the ordinary man on the street in terms of jobs and business opportunities. For instance, the unemployment rate rose to about 33 per cent in 2022 while the number of Nigerians living in poverty rose by 35 million in the same year.”

He concluded his speech by appreciating the board for “providing us with a very conducive environment and allowing us to benefit from their wealth of wisdom and experience which have been helpful at crucial times on this journey. Am particularly proud of our staff who have remained very focused, dogged, and unwavering despite the difficult operating environment.”

capital market

IATF2023 records $43.8bn closed deals



The African Export-Import Bank has disclosed that the third Intra-African Trade Fair (IATF2023) held in Cairo from 9 to 15 November witnessed the conclusion of business deals and transactions valued at US$43.8 billion.

In the final tallies released in Cairo, the organisers of the continental event said that the amount represented the value of 426 deals concluded in 21 sectors covering 52 countries. At a press conference to announce the results, Executive Vice President (Intra-African Trade Bank) at Afreximbank, Mrs Kanayo Awani, also announced that 130 countries participated in the trade fair, which attracted 1,939 exhibitors and 28,282 participants who attended physically and through the IATF virtual platform.

One of the notable transactions included the Export Agriculture for Food Security Framework executed by several African countries (as Origin Countries) and ARISE Integrated Industrial Platforms, Arise IIP (as Anchor Investor) to which Afreximbank committed US$2 billion to boost production, processing, and intra-African trade in agricultural products and to provide African farmers and agribusinesses with opportunities to access larger markets across the continent.

Mrs Awani also said that the IATF had successfully established itself as the premier trade and investment event in Africa, with the unique capacity to increase intra-African trade and investment, especially in the context of implementing the African Continental Free Trade Area (AfCFTA) Agreement.

“Building on the successes of IATF2018 and IATF2021, I am proud to say that the buzz and energy generated by IATF2023 will be felt across Africa and beyond for many years to come. Together, we have explored new possibilities and opened new doors for a brighter future for our continent,” she added.

IATF2023 kicked off on 9 November and included an official opening ceremony, a Presidential Summit which was addressed by President Abdel Fattah Al Sisi of the Arab Republic of Egypt, a Trade and Investment Forum, the Creative Africa Nexus (CANEX), an African Auto Forum, AU Youth Entrepreneurship Programme, a Sub-Sovereigns Conference, a Diaspora Summit, an African Industrialization Week and an African Tourism Sustainability and Investment Forum. A series of side events were also held as part of the trade fair.

The next edition of the IATF will be hosted in 2025 by Algeria.

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capital market

Investors record positive gains, as NGXASI advance by 0.43%



Investors yesterday recorded positive gains on the Nigerian equities market following Monday’s losses.

According to data obtained from the Nigerian Exchange Limited (NGX) website, the NGX Market CAP recorded a gain of N165.99 billion in Naira terms.

The NGX All-Share Index (NGXASI) also advanced by 0.43 percent, closing at 71,250.17 basis points, compared to the previous day’s loss of 0.66 percent, which closed at 70,946.83 basis points. With the growth, the NGXASI now stands at 39.02 percent.

The total volume traded also advanced by 20.93 percent to close at N433.57 million, valued at N11.11 billion and traded in 7,016 deals.

The Gate Index closed flat at 183.36, while the Toni index advanced by 0.27 percent to close at 375.28 basis points.

At the close of trading, the market recorded 40 gainers, 15 losers, and 64 unchanged. NSLTECH topped the gainers list, while ABBEYBDS topped the list of losers.

UACN was the most traded stock by volume with N61.71 million, while NIDF was the most traded stock by value with N2.22 billion units traded.

UACN also had the highest volume contribution with 14.23 percent, while UBA and GTCO followed closely.

According to the value chart, NIDF is at the top with a 20.0 percent contribution. AIRTELAFRI and MTNN followed closely behind.

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capital market

SEC DG calls for multifaceted approach to enhance capital market growth



The Director-General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda has called for a multi-faceted approach to enhance the growth of Nigeria’s capital market.

The SEC DG made this known while addressing journalists at the 2023 conference of the Capital Market Correspondents Association of Nigeria (CAMCAN) held in Lagos at the weekend.

According to Yuguda who was represented by the Executive Commissioner Operations, SEC, Mr Dayo Obisan, “Effectively harnessing the capital market for national development entails a multi-faceted approach, these include deploying more infrastructure, fostering more public-private partnerships, establishing specialised entities like special purpose vehicles (SPVs), listing state-owned enterprises, issuing green bonds to support sustainable projects, and bolstering small and medium enterprises among others.”

According to him, the revised capital market master plan underscored SEC’s commitment to deepening and. repositioning the financial market as a key driver of sustainable economic growth.

“The master plan which represents collective aspirations of the capital market community is focused on driving initiatives geared towards growing and deepening the market with the ultimate goal of accelerating the emergence of our dear country in the top 20 economies by the year 2025,” Yuguda said.

The SEC DG added that synergy holds the potential of unleashing capital market prowess and paving the way for a prosperous future.

According to him, achieving the objective necessitates an increased utilisation of market mechanisms and instruments to raise funds and stimulate economic advancement.

He pointed out that the commission would continue to introduce new ideas and policies that would support the development and regulation of a capital market that is dynamic, fair, transparent, and efficient to contribute to the nation’s economic development, noting that investors protection plays a crucial role in the development and integrity of the capital market.

Also speaking at the event, the Deputy Director, SEC Lagos Zonal office, Mr John Briggs, urged the government to create infrastructure financing instruments that would facilitate easy servicing of obligations.

“We have encouraged a lot of infrastructure funds like sukuk, and green bonds and we are even talking about blue bonds to develop the market.”

“The capital market has created the conducive environment to ensure a transparent and dynamic market which would continue to attract investment,” he said.

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