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#EndSARS: Ideminifying The Deaths, Destructions

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By Francis Ewherido

Those who started the legitimate EndSARS protest against police brutality could not have imagined the deaths and destructions that followed.

Officially 69 people have been confirmed dead at the time of writing. The value of properties either stolen or destroyed is not yet available, but it is in billions.

My condolences to families who lost loved ones. Bereavement, especially sudden deaths like these, are very tough to deal with. I also sympathise with those who lost their valuable properties and investments. Many businesses, especially SMEs, were looted, vandalised and emasculated by hoodlums.

What do these deaths and destructions portend for the insurance industry? You can say, on the one hand, very adverse effects on an industry, still reeling from the negative effects of COVID-19. In addition, insurance companies, which are working towards meeting recapitalisation deadlines, will now be saddled with large claims.

Do not be surprised if some insurance companies record losses or are unable to pay dividends to their shareholders at the end of this financial year.

You may also choose to look at impending claims from a positive perspective. The carnage of the last few days brings to fore the importance of insurance protection for individuals and corporate bodies. The destruction can lead to an upsurge of demand for insurance products.

The carnage of the last few days brings to fore the importance of insurance protection for individuals and corporate bodies. The destruction can lead to an upsurge of demand for insurance products.

What the events of last week have shown is that insurance is an essential aspect of our daily individual lives and our business or corporate life.

We shall naturally start with people and deaths. Human life is invaluable and irreplaceable. Any loss of life diminishes, not only the immediate family, but our common humanity. While insurance will not resurrect a dead loved one or replace a lost limb, it does provides some relief.

The family of an insured, who has a life policy and died during the protests and carnage that followed, is entitled to the full sum assured of the life policy. For instance, if an insured had a N30m life policy, his family is entitled to the full N30m.

It does not matter whether he took the policy only three weeks before his death and had paid only a fraction of the N30m. Also, if an employee is part of group life insurance policy of his company and tragically loses his life within the last one week, his family is entitled to his death benefit. A lot of the time, the benefit is three times the annual emolument of the employee.

Also, if a holder of a personal accident insurance dies and the cause of death is traced to an accident, his family is entitled to the benefits. This also applies when the person is part of a group personal accident insurance cover.

If the person suffers a broken limb, loses a limb, etc., he is entitled to compensation according to the terms of the policy. Such accidental situations covered include being knocked down by a vehicle, falling off a building or staircase or falling into a drain, etc.

But if an insured dies as a result of the aggravation of a pre-existing ailment, like an asthma patient having an attack while running away from hoodlums during the mayhem, the family cannot claim under this policy because such a death cannot be classified as an accident.

Also if a person dies or suffers injuries during this period, the employers’ liability policy of his employer’s insurance company will be liable, provided the death or accident happened in the course of employment.

Also if a person dies or suffers injuries during this period, the employers’ liability policy of his employer’s insurance company will be liable

That is to say the employee died while carrying out official duties. Any deaths, accidents or illnesses outside official duties is not covered under this policy. During the week, we also saw videos of people, who were knocked down by vehicles during the chaos.

If the vehicles concerned can be tracked, the insurance companies that insured the vehicles are legally liable for third party bodily injuries and death. If it is third party property damage, they are liable to the tune of N1m.

Which brings us to the import of material damage on insurance since the protests were hijacked and degenerated into arson, looting and violence. Many private and public properties were burnt and looted. There are two issues.

Do these properties have insurance and do the insurance policies adequately protect these assets against all the risks that just occurred? Let us start with the fire and special perils insurance. A typical fire and special perils policy excludes fire resulting from “… riot, civil commotion, war invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power.” But you can get an SRCC (strikes, riots and civil commotion) extension to your fire and special perils policy.

The implication is that those with fire policies, but without the SRCC extension, whose buildings and contents were destroyed, are not entitled to insurance compensation.

Those who also insured their building only with SRCC extension, but did not insure their contents against fire, will only be compensated for damage to their buildings. They will have no remedy for loss of, or damage to, contents. This also applies to owners of vehicles that were burnt, stolen or vandalized during the mayhem.

Those with third party insurance have no remedy at all. Those with comprehensive motor insurance policies, but without SRCC extension, are not entitled to insurance compensation based on the terms of their policies.

We have business premises, malls and shops that were looted and set ablaze. Which peril caused the loss/damage, fire or theft? That will be for the loss adjusters to determine. The fire policy will pay for losses/damage caused by fire, while theft insurance will pay for damage/loss caused by theft. Usually, some businesses purchase combine fire and theft insurance. At times like this, it is a very wise decision.

Having a business interruption insurance at times like this is also very sensible. When business premises are damaged or looted, it takes a while before some of the affected businesses re-open shops.

Their fire policy will take care of material loss and damage caused by fire, while the theft insurance policies will take care of losses and damage as a result of theft. But while the business is inoperative, fixed costs are still being incurred, salaries are still being paid and there is loss of profit. All these are what business interruption insurance, AKA consequential loss insurance, covers.

But I have an uneasy feeling that many of the affected businesses do not have consequential loss insurance because it is not widely patronized.

From our analysis so far, some people and organizations, affected by the carnage, will not get insurance compensation, not because they do not have insurance, but because the insurance policies they have were not adequate or appropriate.

The insurance industry will get a bashing for being “deceptive” and “dodgy,” but the real problem is that policyholders dabbled into a technical and specialized terrain, without expert advice and guidance.

The insurance industry will get a bashing for being “deceptive” and “dodgy,” but the real problem is that policyholders dabbled into a technical and specialized terrain, without expert advice and guidance. It is like a plaintiff or defendant going to court to defend himself instead of engaging the services of a lawyer.

There are many professionals in the insurance industry with different functions. The main function of registered insurance brokers is to act as intermediaries between policyholders and insurance companies, providing expert advice and guidance to the insuring public when purchasing insurance. And the regular services of insurance brokers are rendered free of charge to the insuring public.

So, potential policyholders should not just sit down on their own and decide to purchase insurance. They should seek the assistance of a registered insurance broker. The insuring public can get the list of registered brokers at: https://www.naicom.gov.ng or https://ncrib.net/member_list.

Now, some people are asking, will insurance companies make ex-gratia payments to policyholders without adequate cover? That would be a great piece of CSR (corporate social responsibility). But my worry is, will insurance companies that have paid out billions in genuine claims still have resources for ex-gratia payments? We shall see.

Francis Ewherido is the Managing Director of Titan Insurance Brokers Limited

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BREAKING: Naira Crashes To N1,309/$1 At Official Market

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The Nigerian Naira has depreciated in value at the official market, with the exchange rate falling to N1,309.39 to a dollar, according to the latest data from the FMDQ trading platform.

This represents a 0.69 percent decline from the previous day’s rate of N1,300.43 against the dollar.

https://gwg.ng/2024/03/29/why-we-arrested-killed-17-soldiers-in-delta-state-traditional-ruler-opens-up/

Despite this, trading volume showed a significant increase, with the total turnover rising to $857.78 million, more than doubling from Wednesday’s $416.10 million.

In the Investor’s and Exporters’ (I&E) window, the Naira experienced fluctuations, trading between N1,392 and N1,250 against the dollar.

This volatility in the forex market comes amidst various economic adjustments and policy shifts by the Central Bank of Nigeria (CBN).

https://gwg.ng/2024/03/29/see-the-complete-fixtures-kick-off-time-date-for-euro-2024/

Adding to the financial landscape changes, the CBN has recently announced new capital requirements for banks, significantly raising the minimum capital base for commercial banks with international authorization to N500 billion.

This move is part of the apex bank’s broader strategy to fortify the Nigerian banking sector, following its call for banks to hasten the recapitalization process to bolster the financial system.

These developments, including the adjustment of the benchmark interest rate to 24.75%, signal the CBN’s intent to tighten monetary policy in a bid to stabilize the economy.

As the financial sector braces for these changes, the impact on borrowing costs, investment, and overall economic health remains a focal point for analysts and stakeholders.

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Why Google Blocked 5.5bn Adverts

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US-based multinational technology corporation Google has blocked over 5.5 billion adverts and suspended 12.7 million others for violating its policies.

The search engine giant also said on Wednesday that it had removed adverts from over 2.1 billion pages.

https://gwg.ng/2024/03/28/see-the-pastor-that-charges-n1-7m-to-teach-people-how-to-perform-miracles/

“Billions of people worldwide rely on Google products to provide relevant and trustworthy information, including ads. That’s why thousands of people are working around the clock to safeguard the digital advertising ecosystem. Today, we are releasing our annual Ads Safety Report to share the progress we’ve made in enforcing our advertiser and publisher policies and to hold ourselves accountable in maintaining a healthy ad-supported internet,” it said.

https://gwg.ng/2024/03/28/man-jailed-6-months-for-stealing-car-battery/

In 2023, it said scams and fraud across all online platforms were on a steady rise.

“Bad actors constantly evolve tactics to manipulate digital advertising to scam people and legitimate businesses. To counter these ever-shifting threats, we quickly updated policies, deployed rapid-response enforcement teams and sharpened our detection techniques”, it added.

https://gwg.ng/2024/03/28/what-i-experienced-in-detention-firstnews-editor-narrates/

Millions of content creators across the globe, including Nigeria, rely on Google Ads to drive revenue.

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Amidst Rumours, Naira Exchanges ₦1,371.170/$1 At Parallel Market For March 28

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Naira dollar exchange for March 28

The Naira is today, Thursday, March 28 2024 exchanging 1,371.170 Naira to 1 US Dollar at the parallel market (black market) in Nigeria according to Naira rate’s Official X handle on Thursday. This means that you can get 1,371.170 Naira for every 1 Dollar that you exchange.

The black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels..

Note that the Black Market Exchange rate is typically higher than the official exchange rate because it is not regulated by the government.

Today, March 28 exchange, indicates that the naira appreciated against dollar with ₦26 difference compared to yesterday, when naira exchanged $1 to ₦1,345.300.

GWG.ng reports that the value of any nation’s currency is determined by aggregate supply and demand.

The forces of Supply and demand are themselves influenced by a number of factors, including interest rates, inflation, capital flow, and money supply.

The most common method to value currency is through exchange rates. The two main exchange rate systems are fixed rate and floating rate systems.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

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Naira Appreciates To N1,350/$ In Parallel Market

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The Nigerian currency, the naira, experienced a notable appreciation in value, reaching N1,350 per dollar in the parallel market, a sharp rise from N1,430 per dollar on Monday.

This trend was mirrored in the Nigerian Foreign Exchange Market (NAFEM), where the naira strengthened to N1,382.95 per dollar, up from N1,408.04, as reported by FMDQ data.

https://gwg.ng/2024/03/27/why-i-dont-win-awards-yemi-alade/

This development has resulted in an increased gap between the parallel market rate and the NAFEM rate, which has expanded to N32.95 from the previous N21.96.

The naira’s value has been on an upward trajectory, with an 18.28 percent increase recorded since February 23, 2024, when it hit a low of N1,665.50.

Analysts attribute the naira’s recent gains to a series of foreign exchange reforms implemented by the Central Bank of Nigeria (CBN).

These reforms, aimed at streamlining the foreign exchange system, include consolidating exchange rate windows, liberalizing the FX market, and clearing foreign exchange backlogs for banks and airlines.

https://gwg.ng/2024/03/27/son-of-ex-president-jailed-in-us/

The CBN’s introduction of a Price Verification System (PVS), revised limits on banks’ Net Open Position, removal of the daily cap on remunerable Standing Deposit Facility (SDF), and the restructuring of the Bureau De Change (BDC) sector, are steps towards fostering a more transparent and efficient market.

Further measures to enhance market dynamics include adjusting margin limits for International Money Transfer Operator (IMTO) remittances, implementing a two-way quote system, and thorough reforms in the BDC segment.

These initiatives are designed to improve market stability, transparency, supply, and price discovery in the Nigeria Autonomous Foreign Exchange Market.

In a recent move, the CBN has set the sale rate of dollars to BDC Operators at N1,251, directing them to offer foreign currency to eligible customers at a margin not exceeding 1.5 percent above this rate.

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See The Lastest Price Of Petrol (Per Litre) In Nigeria For Today

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One of the most essential commodities in the country and all over the world is petrol, also known as Premium Motor Spirit (PMS), as it powers various aspects of the economy and daily life.

However, the price of petrol has been fluctuating over the years, due to various factors such as global oil prices, exchange rates, subsidy policies, and supply and demand.

Current Price of Petrol in Nigeria

According to the regulator of petrol price in the country, the Nigerian National Petroleum Company Limited (NNPCL), the official pump price of petrol (PMS) in Nigeria is N617 per litre.

https://gwg.ng/2024/03/27/why-delta-state-assembly-reverses-sack-of-accountant-after-24-years/

This was after the federal government removed a subsidy on the commodity, which led to a significant increase in the price from N195 per litre.

However, due to logistics and other factors that vary by location, the actual price of petrol may differ across the country.

Naija News understands that petrol presently goes for prices ranging from N600 to N700 per litre across the country, while the over-the-country average price of petrol is presently N630 per litre.

https://gwg.ng/2024/03/27/why-i-granted-full-autonomy-to-local-government-councils-governor-alia/

The table below shows the petrol prices in all 36 states and FCT in Nigeria as of March 27, 2024, as released by NNPCL.

StatePrice (N)
Abia687.50 Per Litre
Abuja632.12 Per Litre
Adamawa671.40 Per Litre
Akwa Ibom677.00 Per Litre
Anambra680.00 Per Litre
Bauchi650.00 Per Litre
Bayelsa673.00 Per Litre
Benue632.84 Per Litre
Borno657.27 Per Litre
Cross River663.33 Per Litre
Delta665.63 Per Litre
Ebonyi638.71 Per Litre
Edo662.00 Per Litre
Ekiti651.33 Per Litre
Enugu673.87 Per Litre
Gombe703.00 Per Litre
Imo687.00 Per Litre
Jigawa679.67 Per Litre
Kaduna670.00 Per Litre
Kano678.27 Per Litre
Katsina680.40 Per Litre
Kebbi796.67 Per Litre
Kogi626.79 Per Litre
Kwara614.90 Per Litre
Lagos663.05 Per Litre
Nassarawa629.32 Per Litre
Niger624.04 Per Litre
Ogun653.11 Per Litre
Ondo653.02 Per Litre
Osun658.77 Per Litre
Oyo662.53 Per Litre
Plateau670.00 Per Litre
Rivers674.55 Per Litre
Sokoto664.80 Per Litre
Taraba704.11 Per Litre
Yobe675.55 Per Litre
Zamfara771.43 Per Litre

Please note that these prices are subject to changes in different stations across the country.

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Eno Neutralises Sharks In Akwa Ibom With N1.5bn Interest-Free Loans

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Akwa Ibom interest-free loans

Governor Umo Eno of Akwa Ibom on Tuesday announced a N1.5 billion interest-free loans to Akwa Ibom traders.

The News Agency of Nigeria (NAN) reports that the loans are to be managed by the Ibom Fadama Micro Finance Bank.

Eno also launched the free-food voucher programme for the vulnerables at the popular Itam market in Itu Local Government Area (LGA) of the state.

“I have heard of how some of you go to some places to get loans with very high interest rates and that has made the cost of food to go up, and before you finish paying the loans, you cannot meet up with your market or trading obligations anymore.

“I have come to tell you not to take such loans again, Consequently, we are releasing N500 million interest-free loans to each of the three senatorial districts making a total of N1.5 billion to help your businesses,” Eno said.

Besides the interest-free loans, the Akwa Ibom governor also promised to construct a car park, provide solar panel light, modern toilet facilities at Itam market for better convenience of the traders.

The Governor, therefore, directed the Transition Chairmen of the remaining 29 councils, excluding Itu and Uyo LGAs, to ensure they launch the free-voucher food programme by April 2.

The free food voucher for the vulnerable, is a key element of the Bulk Agency Bill that was signed into law a week ago, and the Board, equally inaugurated by the Governor, last week.

The key responsibility of the Agency is to provide free staple food items such as Garri, rice and beans to the most vulnerable through the Social Register. (NAN)

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Former DSS Chief, Dennis Amachree: Nigeria Shouldn’t Expel Binance Traders

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Dennis Amachree Binance

Dennis Amachree, a former Assistant Director of Nigeria’s Department of State Services (DSS), has stepped into the fray regarding the pursuit of individuals trading on the Binance cryptocurrency platform. His stance is coming against the backdrop of controversies surrounding the escape of Binance executive Nadeem Anjarwalla from custody, an event that has stirred widespread discussion and concern within the country.

Amachree’s argument revolves around the idea that targeting individual traders on the Binance platform lacks a justifiable basis. Instead, he contends that regulatory and investigative efforts should be directed towards scrutinizing the platform itself and its executives. To illustrate his point, Amachree draws an analogy with the banking sector, explaining that if a bank like UBA were implicated in a crime, authorities would focus on the management responsible for the bank’s operations rather than targeting its customers. He asserts that similar logic should apply to Binance and its users.

The escape of Anjarwalla from a guest house in Abuja, where he was being held alongside colleague Tigran Gambaryan, has raised serious questions about the efficacy of security measures and decision-making processes within the involved authorities. Amachree criticizes the apparent lax security that facilitated the escape, suggesting that Anjarwalla should have been detained by more secure and appropriate agencies such as the Economic and Financial Crimes Commission (EFCC) or the DSS.

This incident has ignited demands for accountability from the security personnel responsible for overseeing the custody of the Binance executives. Amachree’s remarks underscore the need for a thorough investigation into the circumstances surrounding the escape, as well as the enforcement of more stringent security protocols to prevent similar occurrences in the future. The escape has cast a spotlight on the competence and integrity of Nigeria’s security apparatus, prompting calls for swift and transparent action to address any shortcomings and restore public confidence.

In the wake of these developments, the Nigerian public awaits further updates on the investigation and hopes for decisive measures to ensure the accountability of those involved.

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CBN Ups Fight Against Inflation, Raises MPR

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CBN MPR

In a move apparently aimed at curtailing inflation, the Monetary Policy Committee, MPC of the Central Bank of Nigeria, CBN on Tuesday, to hike its benchmark Monetary Policy Rate, MPR by 200 basis points.

The decision came after the two day deliberations of the MPC for the month of March. It was the second time that the MPC now headed by CBN governor Yemi Cardoso and the second time that it would hike the MPR.

GWG.ng reports that the MPC at the end of today’s meeting elected to hike the MPR by 200 basis points.

The Committee voted as follows: Raise the MPR by 200bps to 24.75 from 22.75 per cent

Increase the asymmetric corridor to +100bps/-300 basic points.

Retain the Cash Reserve Ratio of Deposit Money Banks at 45 per cent and Adjust the CRR of Merchant banks from 10 per cent to 14 per cent.

The CBN retained a liquidity ratio of 13 per cent.

GWG.ng reports that the decision of the CBN to raise the MPR could be seen as being overtly cautious as many stakeholders had expected the apex bank to further monitor the steep rate hike it introduced last month.

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Pressure Mounts On Hoarders To Sell Off Dollars As Naira Rebounds

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CBN on dollars

Individuals and businesses holding on to dollars are facing renewed pressure to offload the excess foreign currency in thier possession as the Central Bank of Nigeria (CBN) continues to implement policies that are shoring up the value of the currency.

GWG.ng reports that the Nigerian naira, which recently experienced a significant slide selling up to N1,9000 against the dollar due to heightened demand and outstanding forwards, rebounded and sold below N1,3000 last Monday.

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According to Mallam Yakubu Salisu, a BDC operator, there’s a heightened willingness among people to exchange their dollars amidst fears of further depreciation.

The decision of CBN to sell 20,000 dollars worth of foreign exchange to eligible BDC operators across the nation marks a significant shift, especially after the suspension of such sales three years prior.

Out of the 5,690 registered BDC operators nationwide, approximately 1,373 have been screened for allocation, with specific allocations delineated for various regions including Abuja, Awka, Kano, and Lagos.

The recent circular issued by the CBN reinstating the sale of forex to BDC operators aims to rectify distortions in the retail forex market and bridge the exchange rate gap. The allocated rate of N1,301/$ reflects the lower band rate of executed spot transactions at the Nigerian Autonomous Foreign Exchange Market.

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