BusinessDay 30 Mar 2018

14
BUSINESS DAY
C002D5556
Friday 30 March 2018
COMPANIES & MARKETS
Fidelity Bank savings base
hit N170bn in 3 years
Fidelity Bank Plc.
on Tuesday says
its savings base
has increased to
N170 billion in the
last three years due to the
adoption of retail banking
strategy, “Get Alert in Millions
Promo’’.
Nnamdi Okonkwo, the
bank’s Managing Director,
said this at the fifth/third bimonthly
prize presentation
of the Fidelity “Get Alert in
Millions Promo Reloaded’’
in Lagos.
Okonkwo, represented by
Obaro Odeghe, the Directorate
Head, Corporate Banking,
said that the savings base
rose to N170 billion from N89
billion in 2015, an increase of
91.01 per cent.
“About three years ago,
the savings base of the bank
was about N89 billion and
till date, I can tell you that we
have crossed the N170 billion
threshold and it is still going.
Nnamdi Okonkwo
“So, clearly we have really
demonstrated a lot of attraction
since this promotion
started,’’ he said.
Okonkwo said that the
adoption of retail banking
strategy generated a lot of
deposits from existing customers,
attracted new customers,
and enhanced financial
inclusion in Nigeria.
He said that the bank
would continue to embrace
initiatives that would improve
the lives of its customers.
Okonkwo said that the
promo was introduced to
improve the lives of the customers
as well as reward
loyal customers who had
been banking with the bank
over the years.
He said that the bank
would continue to play
strong in the Small and Medium
Enterprises (SMEs)
base to ensure growth of
small businesses.
Policy consistency, stable economy
will boost PPP – surveyor
Jide Oke, Secretary, Marketing
and Corporate Affairs,
Nigeria Institute of Quantity
Surveyors (NIQS), has
identified policy inconsistency
as a hindrance to the success
of Public/Private Partnership
(PPP) schemes in Nigeria.
Oke said that PPP schemes
would be more effective with
economic stability and regularity
in government directives, in
Lagos on Wednesday.
He claimed that successive
administrations scarcely completed
set projects before their
tenures elapsed. “As such, the
projects are usually abandoned
for new ones by the successors,’’
he said.
According to him, government
should complete projects
and execute policies started
by their predecessors before
embarking on new ones so that
PPP would record significant
progress.
Oke added that government
should respect contractual
agreements with private
firms to enable successful PPP
schemes.
He said that government
should build confidence
among investors, respect contractual
agreements with private
firms and provide special
incentives to encourage private
investments.
“Private individuals and
firms are not charity organisations.
Most times, they borrow
money to execute projects and
need to pay back.
“Once private firms/individuals
notice that the government
does not keep to its
promise in PPP projects, they
will not be willing to partner
again,” he said.
Okonkwo said that the
bank had a lot of initiatives
aimed at supporting the
growth of SMEs apart from
giving out loans.
According to him, the
bank helps SMEs in advisory
services and project analysis
to ensure proper utilisation
of loans.
Okonkwo said that the
bank had given a total of
N81 million in cash and 90
consolation prizes to 183
winners under the “Get Alert
in Millions Reloaded’’.
He said that the bank major
priority was to reward its
customers through different
initiatives to improve their
living standard.
Okonkwo said that the
consolation prizes included
television sets, generators
and refrigerators, noting
that the grand prize of N10
million would be won by a
lucky customer at the end of
the promo.
The new set of winners
emerged from a transparent
randomisation process
monitored by the bank’s
control team and witnessed
by officials from Consumer
Protection Council (CPC)
and other regulators and
stakeholders.
Damilare Emmanuel of
Saka Tinubu Branch, Lagos,
and Isreal Okechi Nwaobialor
of Egbeda Branch who
won one million naira and
two million naira respectively
under the Lagos zone
were rewarded at the event.
Oke advised that PPP
should not be politicised to
avoid jeopardising it.
He called for the right policies,
legislation and regulatory
framework that would guarantee
stable macroeconomic
environment for the success of
PPP schemes.
“If government will put
in place policies and legislation
to guarantee investors’
confidence – assuring them
that there will not be challenges
with their profits/dividends,
there will be respect for
contractual agreements and
that the macroeconomic environment
will be stable – PPP
schemes will thrive,” he said.
Oke urged the Federal Government
to focus on expanding
the country’s investment,
industrial and manufacturing
base.
Shareholders back NAICOM’s directive to insurance
operators on huge management expenses
Shehu Mikail, National
President, Constance
Shareholders Association
of Nigeria
(CSAN) has declared support
for the National Insurance
Commission’s (NAI-
COM) directive to insurers to
cut their huge management
expenses.
Mikail said on Monday
in Lagos, that the cut would
end unnecessary expenditures
embarked on by some
insurers as well as enhance
dividend payment and boost
investors’ confidence in the
sector.
He said the association
was happy with the new
directive by Mohammed
Kari, the Commissioner for
Insurance (CFI).
“This means that companies
would no longer
spend unnecessarily to the
extent that they would not
be able to attend to claims
settlement and give good
returns on investments,’’
Mikail said.
He noted that a data recently
obtained from the
Nigerian Insurers Association
(NIA), revealed that a
whopping N264.15 billion
was spent as management
expenses in five years.
“The data in 2012 financial
year showed that N48.
22 billion was incurred on
management expenses.
“About N48.59, N53.83,
N52.12, and N61.39 billion
in 2013, 2014, 2015 and 2016
respectively, bringing the total
amount spent as management
expenses to N264.15
billion in five years.
“At a time the industry is
targeting one trillion premium
income in 2020, and
15 per cent of N350 billion
expected premium income
annually is being expended
on management expenses.
“These management expenses
included underwriting
expenses, salaries, rents
and others excluding com-
missions paid to agents and
dividend payments within
the periods,’’ he said.
The CSAN president further
said that it was worrisome
that four insurance
firms in 2016 financial year
had their management expenses
higher than the gross
premium generated.
According to Mikail, the
data showed that Old Mutual
Life Assurance Company
Limited, which had N1.30
billion as gross premium,
spent N1.83 billion, Spring
Life Assurance Plc, which
had N32 million spent N105,
282 million
“UNIC Insurance Plc had
N38.7 million and spent
N244.9 million, and Investment
& Allied Insurance Plc
had N4.3 million and spent
N169.4 million’’ he said.
Mikail warned operators
that NAICOM may still take
over more insurance companies
if its directive was not
heeded.
L-R: Olukunle Iyanda, president and chairman of council, Nigerian Institute of Management
(Chartered) (NIM); Agu Onwuzuruoha, guest speaker, and Tony Fadaka, registrar/chief executive,
NIM, at the 2018 Corporate Members’ Forum of the Institute in Lagos. Pic by Olawale Amoo
Rivers launches tax management card and TIN
Ignatius Chukwu
Rivers State has reacted
to its low ranking
on the Ease of
Doing Business by
launching two policy actions
in the form of tax management
cards that may eliminate
multiple taxes.
The governor, Nyesom
Ezenwo Wike, recently flagged
off the Rivers State Tax Management
(RIVTAMIS) and the
Rivers State Tax Identification
Number (RIVTIN).
The governor received the
First RIVTIN Card from the
Executive Chairman of Rivers
State Internal Revenue
Service, Adoage Norteh.
Speaking at the flag-off of
RIVTAMIS and RIVTIN, Wike
said the innovations were
part of his administration’s
commitment to entrenching
platforms for the ease of doing
business.
He said that the new tax
reform packages will identify
all formal and informal businesses
in the state, noting
that the details would help
the state government plan for
development.
According to the governor,
with the digital platforms, tax
payments can be made from
anywhere. He said: “From
First April 2018, all businesses
are required to obtain their
RIVTIN to pay taxes, levies
and fines to the Rivers State
Government. All banks have
been mobilised to generate
RIVTIN for all those who want
to make payments to the Rivers
State Government. Any
business that fails to comply
by June 1, 2018 will be appropriately
sanctioned “.
The chairman, Norteh, said
the tax place has been sanitised
to check multiple taxes.
He said that the process
would facilitate the tax payment
process, enhance selfservice
and improve the revenue
of the state. “Right from
the comfort of your office, you
can obtain your tax clearance
certificate and tax exemption,”
said Norteh.
The chairman said that the
tax payer has a duty to reciprocate
the tax friendliness of
the state government.
President of Port Harcourt
Chambers of Commerce,
Mines and Industry, Emi
Membere-Otaji, said that
the business community was
pleased by the innovations
that have eliminated multiple
taxes.
Spokesman of Heritage
Bank, FB Briggs, assured the
state government that banks
would cooperate to ensure
that the programme succeeds.