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NAICOM expresses concern over non-insurance of public buildings in Nigeria

Felix Oloyede

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NAICOM expresses concern over non-insurance of public buildings in Nigeria
The National Insurance Commission (NAICOM) has expressed concern over the prevalent situation of poor or non-insurance of public buildings and buildings under construction above two-floor.
Insurance of public buildings and buildings under construction above two-floor is designed to cushion the impact and reduce the burden and liabilities that the owner/government would have to bear in likely occurrences of catastrophic events such as natural disasters, fire, accidents, building collapse, injuries or death to third parties.
“It is very worrisome to the commission that most public buildings and buildings under construction above 2 floors are never adequately and appropriately insured,” said deputy commissioner for insurance, technical, Sabiu Abubakar, at the sensitisation workshop for federal and state fire service officers.
Abubakar said the situation has accentuated the need for urgent measures to be put in place by the Commission to ensure that these buildings are adequately insured. “It is the desire of NAICOM to change this narrative for good,” he said.
The sensitization workshop is aimed at equipping fire service officers with the necessary knowledge to properly enforce the insurance of public buildings and buildings under construction above two floors.
Mr Abubakar said it has now more than before become imperative to put in place measures to enforce the insurance of public buildings in Nigeria.
Section 65 of the insurance Act 2003 provides for all public buildings in the federation to be insured, while subsection 4 provides that 0.25 per cent of the net premium received by every direct insurer on policies issued from public buildings is paid quarterly by every insurer into the Fire Services Maintenance Fund.
Comptroller-general of the Federal Fire Service, Dr Ibrahim Liman, said the existence of the funds and the prudent utilization of same can turn the tide in the Fire Service in achieving its mandate.
“This Fund would certainly make issues of lack of equipment a story of the past in the Fire Sector in Nigeria. However, to make this a reality, all parties must play their part,” Abubakar said.
Naira Strengthens Against Dollar, Chinese Yuan
Naira gains 0.04 per cent to N64.3 to a Chinese Yuan week on week, according to Coronation Merchant Bank Limited macroeconomic note obtained by MarketForces Africa on Monday as external reserves hit $41.828 billion.
Also, the Nigerian local currency traded comeback in the investors and exporters foreign exchange window against the United States dollar, data from FMDQ Exchange shows.
According to FX data, the naira gained 0.03 per cent against the greenback as transactions were consummated at N414.98 at the Nigerian autonomous foreign exchange rate fixing on Monday amidst rising foreign external reserves.
Nigeria’s gross external reserves moved near $42 billion as some analysts are predicting further accretion due to stable oil prices in the international market and a positive demand outlook for crude despite the energy crisis.
Recall that last week, the NAFEX rate depreciated by 0.01 per cent or N0.03 week on week to N415.10 for a United States dollar.
In the forwards market, the rate depreciated at the 1-month contract by 0.18 per cent week on week to N416.67 per dollar and at the 3-month contract dropped off 0.80 per cent to N424.47.
“Based on our channel checks, we note that in the parallel market, the Naira closed at an average of N568.0 for a dollar on Friday”, Chinwe Egwim, Coronation Merchant Bank Chief Economist said in a note on Monday.
Therefore, the Coronation Chief Economist explained that the gap between the NAFEX and parallel market rate now stands at 37 per cent.
Citing data from the FMDQ Exchange platform, NAFEX turnover showed a week on week decrease from USD240.9 million to USD93.7 million on Friday.
There has been a slowdown in the Central bank intervention in recent times. FMDQ data shows that over the past week the Investors and Exporters foreign exchange window (NAFEX) recorded inflows of USD411 million.
Of the total sum, Coronation hinted that the CBN accounted for 34.7 per cent, foreign portfolio investors (FPIs) 18.4 per cent, non-bank corporates accounted for 28.0 per cent, and others contributed 19.0 per cent.
“We maintain our view that the FGN’s recent USD4 billion Eurobond issuance and the allocation from the International Monetary Fund’s (IMF) Special Drawing Right (USD3.4bn) bode well for foreign currency reserves”.
Coronation revealed an expectation that the NAFEX rate will trade range-bound between N410.00– N420.00 to a dollar in the near term. Turning to the Chinese Yuan (CNY), according to data from the CBN the Naira appreciated by 0.04 per cent week on week to N64.3 per Yuan, Coronation Chief Economist note stated.
Recall the Bilateral Currency Swap (BCS) agreement entered in 2018 between Nigeria and China allowing the two countries to swap a total of CNY15 billion for N720 billion or vice-versa was renewed in 2021.
CBN has continued with the fortnightly Chinese Yuan auctions. However, analysts noted that some Chinese suppliers still prefer issuing invoices in dollars as opposed to Yuan. #Naira Strengthens Against Dollar, Chinese Yuan
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