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Suspension on shares: Cornerstone Insurance, 3 others blame NAICOM over delayed results

Stories by Kayode Tokede

Amid suspension of trading on shares by The Nigerian Stock Exchange (NSE), Cornerstone Insurance Plc, STACO Insurance Plc, Standard Alliance Insurance Plc and Universal Insurance Company Plc have blamed National Insurance Commission (NAICOM) prolonging the releasing of 2017 results to investing public.

The four insurance companies in a separate letter to the NSE stated that 2017 audited results were submitted to NAICOM and currently undergoing review by the primary regulator.

The management of the Exchange had suspended trading on seven insurance companies over nondisclosure of audited result and accounts.

The other companies suspended by NSE include African Alliance Insurance Plc, Royal Insurance and Veritas Kapital Assurance Plc.

Speaking with Nigerian NewsDirect, the former Director-General, Nigerian Insurers Association, Mr. Sunday Thomas said, “the filing of insurance companies results by our own law is by June ending. For those that are quoted on NSE, it is March ending.

“Some insurance companies often submit their results two days to the deadline which is June.

“When these insurance companies do not submit early, there is no way approval can be granted by the commission. Infact, some of them submitted after the deadline of NSE. If we have such conditions, there is nothing the commission can do.”

The Company Secretary’s, Standard Alliance Insurance in a signed statement said 2017 audited results was submitted to NAICOM on April 26, 2018 and awaits approval.

According to the statement, “It is pertinent to state that the 2017 Audited Account of the Company was submitted to our primary Regulator – the NAICOM on 26 April, 2018, and we await the Regulator’s approval.

“Upon the Company obtaining NAICOM’s approval for the Financial Statements, same will be submitted to the NSE. We sincerely apologize for any inconvenience and are optimistic to submit the Accounts to The Exchange on or before August 31, 2018.”

The management of Cornerstone Insurance in a statement said the company’s audited financial statements are currently undergoing review by the NAICOM, stating that it will be filed immediately the company obtains approval.

The company’s secretary, PAC Solicitors, in a statement said, “Cornerstone Insurance wishes to bring to the notice of its shareholders and the investing public the continued delay in filing and publication of its audited financial statements for the year ended December 31, 2017 as required by the Nigerian Stock Exchange (NSE) and the Securities and Exchange Commission (SEC).

“The company’s audited financial statements are currently undergoing review by the NAICOM and will be filed immediately the company obtains the approval of NAICOM.”

“Cornerstone Insurance apologizes for this delay and assures its shareholders and all stakeholders of its committeemen to immediately publish its accounts upon receipts of approval from NAICOM.”

The company’s secretary, Universal Insurance, Chinedu Onyilimba in a statement said, the company’s had since completed the auditing of the accounts and submitted same with NAICOM for approval.

The company explained that the 2017 results would be filed with The Exchange upon receipt of approval from NAICOM.

On its part, the management of Staco Insurance hinted that its 2017 audited results would be submitted on or before July 31, 2018.

The company’s secretary, Iegede Taiwo in a statement said, “The 2017 audited accounts had been submitted to our primary regulator, the NAICOM, and is being reviewed for approval.

“We apologize for any inconvenience caused by the delay in the filing, and are optimistic that the audited accounts will be submitted on or before July 31,2018.”

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Business

FDI 2018 In Africa: Nigerians Mobilise N26.640bn

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Nigerian startups raised a total of N26.640billion or $73.6 million, up 800 percent from the N3.240billion or $9.2 million between April and June this year, according to the latest Nigeria News Direct report on Foreign Direct Investment.

The Q1 2018 report noted that a total of $4,241,196 was raised by 13 startups, mostly from foreign investors, while grants made up almost 70per cent of the deals.

The report added that the amount in the Q2 was mobilised from 30 local and foreign investment firms by 41 startups. Main beneficiaries include 12 companies that provide financial services, 7 agritechs firms, 4 startups active in governance and 3 logistics.

Most of the resource of N17.280 billion or $47.5 million was of type C financing. The online payment provider Cellulant was the only beneficiary of this type of financing. Three other startups received N5.04billion or $13.5 million in type a financing while over N3.6billion $10.2 million was granted as donation to 10 companies.

In another development, a Houston-based private equity firm, Denham Capital, specialising in mining, gas and energy sectors, announced it closed a mining fund worth $558 million that will be deployed on several markets including Africa. The fund targets operable or close-to-be exploitable projects.

“The close of our first mining fund marks a significant and strategic milestone for Denham Capital. We are pleased that our limited partners share our belief that there is a robust pipeline of opportunities across the global mining sector,” said managing partner and co-founder, Carl.

Let’s note that the amount of capital committed to Africa is not specified but markets would surely compete to attract the largest share. Moody’s revealed that China’s economy, which drives the global demand for mining resources, is already seeking for other suppliers outside Africa.

Denham is already active in Africa. The firm’s African portfolio includes Endeavour, which has projects in Ghana, and the wind energy project with Biotherm. However, these projects are yet to be achieved, according to report.

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IMF Raises Nigeria’s 2019 Growth Forecast to 2.3%

The International Monetary Fund (IMF) has raised Nigeria’s Gross Domestic Product (GDP) projection for 2019 to 2.3 per cent, up from the 1.9 per cent it had predicted for the country previously.

The fund stated this in its World Economic Outlook (WEO) update titled, ‘Less Even Expansion, Rising Trade Tensions,’ released Monday.

The multilateral institution attributed its higher growth forecast for the country in 2019 to improved outlook for oil prices.

 

Although Nigeria’s second quarter 2018 GDP figures are yet to be released by the National Bureau of Statistics (NBS), the country had recorded growth rate of 1.95 per cent in the first quarter of the year, lower than the 2.11 per cent recorded in the fourth quarter of 2017.

 

In addition, the IMF in the latest report noted that the recovery in Sub-Saharan Africa was set to continue, supported by the rise in commodity prices.

 

For the region, growth was expected to increase from 2.8 per cent in 2017, to 3.4 per cent this year, rising further to 3.8 per cent in 2019 (0.1 percentage point higher for 2019 than forecast in the April WEO).

 

The Fund stated, “The upgraded forecast reflects improved prospects for Nigeria’s economy. Its growth is set to increase from 0.8 per cent in 2017 to 2.1 per cent in 2018 and 2.3 per cent in 2019 (0.4 percentage point higher than in the April WEO for 2019).

 

“Despite the weaker-than-expected first quarter outturn in South Africa (in part due to temporary factors), the economy is expected to recover somewhat over the remainder of 2018 and into 2019 as confidence improvements associated with the new leadership are gradually reflected in strengthening private investment.”

 

Commenting on the latest WEO, The Economic Counsellor and Director of the Research Department, IMF, Maurice Obstfeld, noted that overall growth in sub-Saharan Africa would exceed population growth over the next couple of years, allowing per capita incomes to rise in many countries.

 

However, he noted that despite some recovery in commodity prices, growth would still fall short of the levels seen during the commodity boom of the 2000s.

 

“Adverse developments in Africa—civil strife or weather-. shocks, for example—could intensify outward migration pressures, especially toward Europe,” Obstfeld explained.

 

According to him, amid rising tensions over international trade, the broad global expansion that began roughly two years ago has plateaued and become less balanced.

 

He stated that growth remains generally strong in advanced economies, but has slowed in many others, including countries in the euro area, Japan, and the United Kingdom.

 

He said, “In contrast, GDP continues to grow faster than potential and job creation is still robust in the United States, driven in large part by recent tax cuts and increased government spending.

 

“Even US growth is projected to decelerate over the next few years, however, as the long cyclical recovery runs its course and the effects of temporary fiscal stimulus wane.

 

“For the advanced economies, we project 2018 growth of 2.4 per cent, down 0.1 percentage point from our April WEO. We maintain an unchanged forecast of 2.2 per cent growth in those economies for 2019.

 

“For emerging market and developing economies as a group, we still project growth rates of 4.9 per cent for 2018 and 5.1 per cent for 2019. These aggregate numbers, however, conceal diverse changes in individual country assessments,” he added.

 

He urged countries to embrace multilateral cooperation.

 

“A truly global effort is also needed to curtail corruption, which undermines faith in government in so many countries. “Finally, recurrent surges in international migration pressures, which have proven so politically destabilising recently, cannot be avoided without cooperative action to improve international security, support the Sustainable Development Goals, and resist climate change and its effects,” he said.

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Business

IMF Raises Nigeria’s 2019 Growth Forecast to 2.3%

The International Monetary Fund (IMF) has raised Nigeria’s Gross Domestic Product (GDP) projection for 2019 to 2.3 per cent, up from the 1.9 per cent it had predicted for the country previously.

The fund stated this in its World Economic Outlook (WEO) update titled, ‘Less Even Expansion, Rising Trade Tensions,’ released Monday.

The multilateral institution attributed its higher growth forecast for the country in 2019 to improved outlook for oil prices.

Although Nigeria’s second quarter 2018 GDP figures are yet to be released by the National Bureau of Statistics (NBS), the country had recorded growth rate of 1.95 per cent in the first quarter of the year, lower than the 2.11 per cent recorded in the fourth quarter of 2017.

In addition, the IMF in the latest report noted that the recovery in Sub-Saharan Africa was set to continue, supported by the rise in commodity prices.

For the region, growth was expected to increase from 2.8 per cent in 2017, to 3.4 per cent this year, rising further to 3.8 per cent in 2019 (0.1 percentage point higher for 2019 than forecast in the April WEO).

The Fund stated, “The upgraded forecast reflects improved prospects for Nigeria’s economy. Its growth is set to increase from 0.8 per cent in 2017 to 2.1 per cent in 2018 and 2.3 per cent in 2019 (0.4 percentage point higher than in the April WEO for 2019).

“Despite the weaker-than-expected first quarter outturn in South Africa (in part due to temporary factors), the economy is expected to recover somewhat over the remainder of 2018 and into 2019 as confidence improvements associated with the new leadership are gradually reflected in strengthening private investment.”

Commenting on the latest WEO, The Economic Counsellor and Director of the Research Department, IMF, Maurice Obstfeld, noted that overall growth in sub-Saharan Africa would exceed population growth over the next couple of years, allowing per capita incomes to rise in many countries.

However, he noted that despite some recovery in commodity prices, growth would still fall short of the levels seen during the commodity boom of the 2000s.

“Adverse developments in Africa—civil strife or weather-. shocks, for example—could intensify outward migration pressures, especially toward Europe,” Obstfeld explained.

According to him, amid rising tensions over international trade, the broad global expansion that began roughly two years ago has plateaued and become less balanced.

He stated that growth remains generally strong in advanced economies, but has slowed in many others, including countries in the euro area, Japan, and the United Kingdom.

He said, “In contrast, GDP continues to grow faster than potential and job creation is still robust in the United States, driven in large part by recent tax cuts and increased government spending.

“Even US growth is projected to decelerate over the next few years, however, as the long cyclical recovery runs its course and the effects of temporary fiscal stimulus wane.

“For the advanced economies, we project 2018 growth of 2.4 per cent, down 0.1 percentage point from our April WEO. We maintain an unchanged forecast of 2.2 per cent growth in those economies for 2019.

“For emerging market and developing economies as a group, we still project growth rates of 4.9 per cent for 2018 and 5.1 per cent for 2019. These aggregate numbers, however, conceal diverse changes in individual country assessments,” he added.

He urged countries to embrace multilateral cooperation.

“A truly global effort is also needed to curtail corruption, which undermines faith in government in so many countries. “Finally, recurrent surges in international migration pressures, which have proven so politically destabilising recently, cannot be avoided without cooperative action to improve international security, support the Sustainable Development Goals, and resist climate change and its effects,” he said.

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