BusinessDay 07 Nov 2017

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12 BUSINESS DAY C002D5556 Tuesday 07 November 2017 EDITORIAL PUBLISHER/CEO Frank Aigbogun EDITOR-IN-CHIEF Prof. Onwuchekwa Jemie EDITOR Anthony Osae-Brown DEPUTY EDITOR John Osadolor, Abuja NEWS EDITOR Patrick Atuanya EXECUTIVE DIRECTOR, SALES AND MARKETING Kola Garuba EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, DIGITAL SERVICES Oghenevwoke Ighure ADVERT MANAGER Adeola Ajewole MANAGER, SYSTEMS & CONTROL Emeka Ifeanyi HEAD OF SALES, CONFERENCES Rerhe Idonije SUBSCRIPTIONS MANAGER Patrick Ijegbai CIRCULATION MANAGER John Okpaire GM, BUSINESS DEVELOPMENT (North) Bashir Ibrahim Hassan GM, BUSINESS DEVELOPMENT (South) Ignatius Chukwu HEAD, HUMAN RESOURCES Adeola Obisesan EDITORIAL ADVISORY BOARD Dick Kramer - Chairman Imo Itsueli Mohammed Hayatudeen Albert Alos Funke Osibodu Afolabi Oladele Dayo Lawuyi Vincent Maduka Wole Obayomi Maneesh Garg Keith Richards Opeyemi Agbaje Amina Oyagbola Bolanle Onagoruwa Fola Laoye Chuka Mordi Sim Shagaya Mezuo Nwuneli Emeka Emuwa Charles Anudu Tunji Adegbesan Eyo Ekpo NEWS ROOM 08022238495 08034009034}Lagos 08033160837 Abuja ADVERTISING 01-2799110 08116759801 08082496194 ENQUIRIES The demystification of Buhari gradually reaches a crescendo I belong to everybody and I belong to nobody”, with these words during President Muhammadu Buhari’s inaugural speech, it appeared Nigeria finally got it right. In the months following his election, many Nigerians spoke of improved electricity supply, and like every other thing that appeared to be magically ‘turning out well’, all were attributed to the president’s body language. Two years later, and it appears the president’s body has either run out of language styles or those in the corridors of power have simply found it to be all ‘barks and no bite’. In the early months of the Buhari administration, it would have been unheard of that an alleged pension thief (now a fugitive on account of arrest warrants) will be smuggled into his former office, right under Buhari’s nose. Abdulrasheed Maina, former chairman of the Presidential Task Force on Pension Reforms, allegedly stole over N2 billion of pensioners funds and since 2013, has been on the run. Interestingly, the saintly government of President Buhari - if accusations and counter accusations in the presidency are anything to go by – saw the Attorney General’s office, writing the Federal Civil Service Commission for Maina’s reinstatement. This is at least according to Winifred Oyo-Ita, Head of Service of the Federation. The now controversial reinstatement of Maina is however just one piece of the puzzle. The powers that be in the President’s inner caucus just didn’t develop the temerity to take such an audacious step overnight. No. It has been a gradual build up as it became increasingly clear that the Commander-in-Chief had even less control (and consciousness) of events going on around him. In April, Babachir Lawal, Secretary to the Government of the Federation (SGF) was suspended over alleged violations in the award of contracts under the Presidential Initiative on the North East (PINE). The suspension came after months of a baffled public, wondering how the presidency’s ‘coordinating arm’ as it were, had lost the saintly credentials expected of Buhari’s cabinet members. The former SGF is by no means the only member of the Buhari administration who has been ‘found wanting’, he simply got caught, at least by the report which indicted him. Like the former SGF, even Ayo Oke, former director general of the National Intelligence Agency, did not think being a saint was still required by the Buhari administration, at least not after two years of ‘initial bravado’. Oke thought it wise to run his own show with millions of dollars stashed away in at least one Ikoyi apartment that we know of. All was going well until EFCC’s Ibrahim Magu burst his bubble. Like the erstwhile SGF who once asked “who is the presidency”, Oke has also now been shown the door. In saner climes, one would expect their exit through the door to be definite. But recent turn of events almost suggest a person like Ayo Oke could even become a service chief ‘without the president knowing’, while Lawal could find himself back in office, courtesy of ‘memos from the Attorney General’s office.’ One is also tempted to ask, just like Lawal; who really is the presidency? We choose not to err on the side of conspiracy theorists who do not hesitate to mention certain names of the president’s supposed relatives, as those in charge of this government. This is for no reason other than the fact that it amounts to a complete mockery of over 15 million voters who put their faith in one man, Muhammadu Buhari, and not his nephew(s). The ‘action man’ many Nigerians thought was voted into power is today, at complete variance with the personality who currently occupies the seat of President, Federal Republic of Nigeria. We believe it is time for President Buhari to get involved in governance, not only when issues appear not in the interest of certain blocs, but at all times. President Buhari should take charge of all apparatus of government and if truly his body had any mythical language which on its own caused change, now will be a good time to regain that rhythm. SUBSCRIPTIONS 01-2799101 07032496069 07054563299 www.businessdayonline.com The Brook, 6 Point Road, GRA, Apapa, Lagos, Nigeria. 01-2799100 LEGAL ADVISERS The Law Union MISSION STATEMENT To be a diversified provider of superior business, financial and management intelligence across platforms accessible to our customers anywhere in the world. OUR CORE VALUES BusinessDay avidly thrives on the mainstay of our core values of being The Fourth Estate, Credible, Independent, Entrepreneurial and Purpose-Driven. • The Fourth Estate: We take pride in being guarantors of liberal economic thought • Credible: We believe in the principle of being objective, fair and fact-based • Independent: Our quest for liberal economic thought means that we are independent of private and public interests. • Entrepreneurial: We constantly search for new opportunities, maintaining the highest ethical standards in all we do • Purpose-Driven: We are committed to assembling a team of highly talented and motivated people that share our vision, while treating them with respect and fairness. www.businessdayonline.com
Tuesday 07 November 2017 C002D5556 BUSINESS DAY 13 COMPANIES & MARKETS Company news analysis and insight Okomu Oil’s wining sales streak continues on government policy P 14 Wapic Insurance is efficient as underwriting profit surge …Insurer investor conference call holds today BALA AUGIE Wapic Insurance 106.85 percent growth in underwriting profit is an affirmation of improved efficiency of the insurer’s operation despite macroeconomic challenges. The insurer will hold a teleconference call for investors and analysts on Tuesday, November 7, 2017 at 2pm Lagos Time (1pm London/ 3pm Johannesburg/ 9am New York) with its senior management, to announce the unaudited financial results for the period ended September 2017. There will be an opportunity at the end of the call for management to take questions from investors and analysts. For the first nine months through November 2017, Wapic Insurance’s underwriting profit moved to N7.81 billion as against N6.40 billion the previous year. The Nigerian insurer is efficient as its combined ratio (CR) of 89.16 percent, lower than the 93.15 percent recorded last year, is less than the 100 percent threshold. The CR is the combination of underwriting and claims expenses as a percentage of premium income. Wapic Insurance has surmounted the economic downturn brought on by lower oil price and a severe dollar shortage as premium income continues to grow. Gross premium written (GPW) spiked by 22.05 percent to N7.81 billion in the period under review from N6.40 billion as a September 2016. The growth in revenue was underpinned by a 91.47 percent increase in Motor Insurance to N1.79 billion. The company realized N1.34 billion from Group Life. Gross premium income and Net premium income increased by 31.15 percent and 34.25 percent to N7.28 billion and N4.38 billion respectively. Wapic Insurance’s net claims expenses increased by 13.58 percent to N2.09 billion in September 2017 compared to N1.84 billion as at September 2016. Claims ratios declined to 47.71 percent in the period under review as against 56.44 percent the previous year. This means company spent N47 in claims to generate every N100 in premium income. Wapic Insurance has urged players in the industry to play a major role in indemnifying losses in the oil and gas sector to prevent the industry from being handicapped financially after any major loss. Further analysis of the Nigerian insurer financial statement shows its cost control measures and technology optimization has paid off as total operating expenses reduced by 4.70 percent to N3.24 billion. Going into the last quarter of the year, the insurer says it shall focus attention on emerging opportunities in the industry and the economy while consolidating on its technology optimization, cost reduction, retail deepening, branding and customer experience strategies. Wapic Insurance Plc. (“Wapic” or “the Company”) is a leading West African multi-line insurance company providing solutions covering life, general and special risks. Established in 1958 and listed on the Nigerian Stock Exchange since 1978, Wapic’s mission is to transform into a diversified financial services institution, delivering value in a sustainable manner to her customers and stakeholders while playing a lead role in the transformation of the industry. With headquarters in Lagos, Nigeria, Wapic is organized into two core business segments, General and Life Insurance. The Company has two wholly owned subsidiaries, Wapic Life Assurance Limited and Wapic Insurance (Ghana) Limited as well as an associated company, Coronation Merchant Bank Limited. Through a diverse portfolio of products and a commitment to providing the best customer experience possible, Wapic, with an AM Best Financial Strength rating of “C++” and an Issuer Credit rating of ‘b+”, has significantly enhanced its underwriting capacity placing it among the top five insurance companies in Nigeria by solvency and capital European energy groups push EU for tougher climate change goals Iberdrola, Enel and SSE among those wanting more aggressive targets for renewables Andrew Ward Energy Editor Some of Europe’s largest energy companies have accused the EU of lacking ambition in the fight against climate change and urged more aggressive targets for growth in renewable power. The declaration, by companies including Iberdrola of Spain, Enel of Italy and SSE of the UK, came as negotiators gathered in Bonn for the latest round of international talks on tackling global warming. A proposed target for renewables to meet 27 per cent of EU energy consumption by 2030, up from 16.7 per cent in 2015, “lacks ambition and would slow down the current rate of renewables deployment” in Europe, the companies said. Their intervention shows the extent to which the energy industry — once seen as a roadblock to action against climate change — is embracing the transition away from fossil fuels. Most big western European utilities have, to varying degrees, been reducing dependence on coal and gas-fired power generation in favour of wind and solar power in response to subsidies and other political measures to promote green energy. But in some cases, companies are now moving more aggressively than policymakers as the falling cost of wind and solar increases economic incentives for the switch. The statement, by companies also including EnBW of Germany, EDP of Portugal and Orsted, the Danish group previously known as Dong Energy, called for an EU-wide binding target for 35 per cent renewable energy by 2030. Such a target was needed, the companies said, to “restore the EU’s global leadership” in green energy and to preserve efficiency gains, which had made renewables “the most competitive option for new power generation in Europe”. The proposed renewables target is part of a package of measures intended to help the EU meet its carbon reduction commitments under the Paris climate agreement. EU policymakers are struggling to reconcile support for more aggressive action in much of western Europe with resistance from central Europe where coal-fired power generation remains dominant. The biggest flashpoint in talks has been over proposed reforms of the EU emissions trading system to increase the price paid by power stations and factories for the carbon dioxide they put into the atmosphere. Further talks are expected this week after an earlier round broke down over Polish opposition to measures that would prevent revenues from carbon trading to be used to modernise coal-fired power stations. The EU wants a deal to burnish its climate commitments during the Bonn talks, which start on Monday and run for two weeks with a focus on how to implement the Paris agreement. Ignacio Galán, chairman of Iberdrola, said a “transparent and predictable European policy framework” was essential to drive further investment in renewables. Dave Jones, analyst at Sandbag, the climate think-tank, said there was an increasing gulf between western European utilities, which were staking their futures on renewable power, and those in central and eastern Europe, which remained wedded to coal.
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