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Despite COVID-19, Lasaco Records GPW Of N10.937billion In 2020, Says Teju Philips At Annual 41st AGM

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The Chairman of Lasaco Assurance Plc, Mrs Olateju Philips, has disclosed that in spite of the challenging situation experienced in the year 2020 as a result of the COVID-19 pandemic, the company was able to deliver an awesome performance with a record Gross Premium Written of N10.937billion.

Mr Philips who made this known during the company’s 41st Annual General Meeting held at Marriott Hotel, Ikeja GRA Lagos, added that Lasaco Assurance Plc was able to generate N8.05billion in net underwriting income as against N6.71billion made in 2019, signifying an increase of 20% year on year.

According to her,” In spite of the challenging situation experienced during the course of the year, the company was able to deliver an awesome performance in 2020 and grew stakeholders’ value. We recorded a Gross Premium Written of N10.937billion.

“This signifies a 17% growth in performance compared to Gross Premium Written in 2019. The company made N8.05billion in net underwriting income as against N6.71billion made in 2019 signifying an increase of 20% year on year.

“100% increase was recorded in profit before tax from N315.7billion in 2019 to N679.4million in 2020. Our total assets grew from N18.5billion to N20.5billion signifying an 11% increase while shareholders’ funds declined by 2% from N7.98billion in 2019 to N7.80billion in 2020.

Speaking further, she said that with the array of economic events which the company was able to manage in the previous year and strategies put in place by the leadership of the organization, 2021 promises to be better for Lasaco Assurance Plc.

“We are also hopeful that the economic policy adjustments and reforms will aid the business environment positively.

“In the last one year, we have worked assiduously to map out strategies to improve our identity and visibility to increase sales and market share. Our strategies to improve our identity and visibility to increase sales and market share.

“Our strategic digital transformation plan will aid customer experience and the diversification of income streams deepening will add tremendous value to the bottom line.

“Plans have also been devised for the diversification of our investment portfolio. This will spur the organization to grow through an increase in investment income.

She lamented that the COVID-19 pandemic placed Nigeria in a critical condition in 2020 as the country locked down economic activities at the beginning of the quarter of 2020 in order to minimize the spread of the COVID-19 virus.

She said the country entered the crisis with the failing per capital income, high inflation, and governance challenges which affected every aspect of business and economic lives.

“Nigeria’s economy experienced a 3.6% contraction in the first three quarters of 2020 leading to the worst recessions in decades, oil prices improved and the authorities employed policies to counter the economic distress.

“The economy even with the various unrest experienced across the country, returned to growth albeit marginally, in the final quarter of the year 2020, with GDP expanding 0.11% year-on-year beating market expectations of 1.9% decline.

“Inflation galloped to a 34- month high 15.75% in December 2020 from 11.98% same period in 2019, fueled by increase food prices due to constraints on domestic supplies and the effect of an exchanged premium that widened to about 24%.

Mrs Philips lamented that citizens agitations in many parts of the country, especially the End SARS protest also disrupted lots of activities leading to lost of lives and properties.

She stated that this affected insurance businesses in the country as claims in both high frequency, high severity, and near catastrophe were recorded countrywide.

“In 2020, Nigeria financially markets based her actions on the monetary policy. The equity market rose to 50% in 2020. Its tops performance is over a decade. However, stock performance in 2021 depends on the direction of monetary policy and relative to the business environment.

“Nigeria economy is anticipated to grow by 1.8% in 2021. Despite the current encouraging external situation with oil prices recovery and growth in advanced economies, reform shortfall would hinder the renewed economic expansion and undermine progress towards Nigeria’s development goals.

“Hopefully, policy adjustments and reforms designed to shift the country from its dependence on oil and to diversify the economy towards private sector-led growth will set Nigeria on a more sustainable path to recovery,” she averred.

She assured the shareholders, board members, management, and staff of Lasaco Assurance Plc, that it is the dawn of a new era adding that together with their continuous supports, the legacy of the organization will be sustained.

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BIG STORY

Inflation: Real Reason Indomie Reduced Prices Of Popular Staple Food Item Revealed

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In the face of mounting inflationary pressures in Nigeria, Indomie Instant Noodles, a major brand under Dufil Prima Foods Limited, has announced a substantial price cut to ensure affordability for consumers.

The move was made to preserve availability to this well-liked essential food item in response to the growing economic difficulties that Nigerians were facing.

And this is supported by a recent survey that was carried out at a number of Lagos-based stores and found that the costs of Indomie goods had significantly dropped. When compared to the previous month, the price of the 70g pack of Indomie Regular Chicken noodles dropped to N250.

Additionally, the price of a 40-pack carton of Indomie dropped from N12,000 to N10,000 within the same timeframe. Prior to this adjustment, Indomie’s prices had surpassed those of competing brands such as Mimee (N200) and Honeywell noodles (N250).

Temitope Ashiwaju, the group corporate communications & event manager at Dufil Prima Foods Limited, attributed the price reduction to favourable changes in operational costs.

He emphasized the company’s commitment to passing on benefits to consumers, stressing their dedication to fairness and affordability.

“We are never going to be taking advantage of the populace. We want to make profit, but in a fair way,” the spokesman added. “That is why we are determined to keep our products affordable to Nigerians.”

Contrary to speculations suggesting low patronage as the driving factor behind the price adjustment, Ashiwaju reaffirmed that the decision was rooted in the company’s ethos of customer-centricity and fairness.

Industry experts have hailed Dufil Prima’s move as influential, predicting a ripple effect that could prompt other brands to follow suit because Indomie’s dominant position in the market has positioned it as a price setter, prompting expectations for broader shifts in pricing strategies across the industry.

The price reduction by Indomie comes amidst a backdrop of economic challenges in Nigeria, characterized by soaring inflation rates.

Over the past nine months, Nigeria has witnessed a steady rise in headline inflation, driven primarily by government reforms such as the removal of petrol subsidy and naira devaluation.

As a result, food inflation has surged, exacerbating the financial strain on households and leading to an increase in poverty levels.

Despite these economic headwinds, a recent report by Euromonitor International indicates robust growth in the sales value of noodles within Nigeria’s formal market.

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Lagos State Government Disburses N4.48bn In Pension Benefits To Retirees

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  • Governor Sanwo-Olu Upholds Commitment to Pensioners’ Welfare with Timely pay

 

The Lagos state government on Thursday, March 28, paid a total of N4.48 billion in pensions to 1,455 retirees for the month of March.

The payment was given at the Lagos State Pension Commission’s (LASPEC) 104th retirement bonds certificate presentation.

When LASPEC paid N3.2 billion in accrued pensions to 1,013 retirees during the 103rd retirement bonds certificate ceremony in February, the state governor, Babajide Sanwo-Olu, had promised to pay at least N4 billion in March.

To settle all pending accrued pensions by the middle of the year, the governor guaranteed that the state government would pay an additional N3 billion in April.

While he acknowledged the backlog in the payment of accrued rights, Sanwo-Olu noted: “Our attention is focused on systematically eliminating the backlog.”

He also expressed optimism about the actualisation of the government’s dream of a “Pay-As-You-Go” model before his term ended.

At the presentation, LASPEC Director-General, Babalola Obilana, said that the monies were released for civil personnel who retired before the start of the Contributory Pension Scheme in 2007.

Obilana expressed gratitude to Sanwo-Olu for his steadfast dedication to the well-being of the state’s residents.

The governor, he pointed out, had consistently placed pensioners’ interests first and supported measures to lessen their financial difficulties.

He assured that by mid-2024, retirees from the state would receive their benefits as they departed from government employment, emphasising that the governor had kept his word to clear all pension arrears.

Obilana said: “On behalf of Gov. Sanwo-Olu and the entire Lagos State Government, I extend my heartfelt gratitude to all of you present at this memorable event.

“Lagos State is thankful for your accomplishments and the enduring contributions you have made throughout your distinguished careers.

“You have exemplified the values that define Lagos State – integrity, commitment, and excellence.

“Your dedication and hard work have contributed to the dream of a `Greater Lagos’.

You are a source of inspiration for us all. Your legacy will undoubtedly continue to resonate within the public service.”

LASPEC DG further urged retirees to be cautious of fraudsters and choose suitable pension investments. He highlighted the transition from professional life to leisure and hoped their future would be full of happiness and fulfillment from a rewarding professional life.

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Federal Government To Grant Mining Licenses To Only Companies That Process Locally

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Nigeria will only grant new mining licences to companies that present a plan on how minerals would be processed locally, under new guidelines being developed, a government spokesperson confirmed on Thursday.

This is a departure from Nigeria’s long-standing practice of exporting raw commodities, as governments around Africa work to increase the value derived from their substantial mineral reserves.

To spur investment, Nigeria will offer investors incentives including tax waivers for importing mining equipment, make it easier to secure electricity generation licences, allow full repatriation of profits and boost security, Segun Tomori, a spokesperson for Nigeria’s minister of solid minerals development said.

“In exchange, we have to review their plans for setting up a plant and how they would add value to the Nigerian economy,” Tomori said. He did not say when the guidelines would be finalised or come into effect.

However, last week the minister of solid minerals development, Dele Alake, said it was now government policy to make value addition a condition for obtaining licences so as to create jobs and help local communities.

Alake, who also chairs an African mining strategy group comprising mining ministers from Uganda, Democratic Republic of Congo, Sierra Leone, Somalia, South Sudan, Botswana, Zambia and Namibia, is pushing for a continent-wide effort to get maximum local benefit from mineral exploration.

Nigeria, Africa’s top energy producer, has struggled to extract value from its vast mineral resources due to poor incentives and neglect. The underdeveloped mining sector contributes less than 1% of the country’s gross domestic product.

Last year Nigeria exported mostly tin ore and concentrates worth about 137.59 billion naira ($108.34 million), mainly to China and Malaysia, according to the country’s statistics bureau.

The government aims to drive more investment into the sector by issuing more licenses. It has set up a state-owned solid minerals corporation offering investors a 75% stake and established a special security unit tasked with fighting illegal miners.

The government is also trying to regulate artisanal miners, who dominate the sector, by grouping them into cooperatives.

Foreign mining companies operating in Nigeria include Canada-based Thor Explorations which is involved in gold exploration, Chinese-owned Xiang Hui International Mining which partnered with a local company to process gold, and Indian-owned African Natural Resources and Mines, which is building a $600m iron ore processing plant in northern Nigeria.

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