Royal Exchange Plc announced yesterday that German-owned InsuResillience Investment Fund has completed the acquisition of 39.25% equity stake in its subsidiary – Royal Exchange General Insurance Limited.
The InsuResilience Investment Fund was set up by Germany’s state-owned development bank – KfW – on behalf of the German Government. The fund is managed by Blue Orchard Investment Ltd, a Swiss impact investment manager.
According to a statement that was made available to the public by Royal Exchange, the investment would enable Royal Exchange General Insurance Ltd to expand on its underwriting capacity, particularly so in the agriculture underwriting space. This is probably coming at the perfect time, considering the fact that Nigeria is approaching its farming season.
Royal Exchange also claimed that the investment has now strategically put it in a vantage position, which will enable it create value by catering to the needs of many under-insured small-scale farmers in the country. Part of the statement by the company said:
“We assure our shareholders and the investing public that the Company is strategically positioned to capture the opportunity by over 30 million under-insured small scale farmers by leveraging on technology to increase the resilience of small scale farmers to climate change.
“We also reiterate our commitment to continue to develop innovative products and services to meet the insurance needs of the general public.”
Established on February 28 1918, Royal Exchange Plc is also one of the oldest companies in Nigeria. It is also the oldest insurance company in Nigeria where it offers wide-ranging services, including life insurance, health insurance, and general insurance, etc.
Yesterday, the company informed stakeholders about its inability to meet the March 31st deadline to disclose its audited 2019 financial statement. As Nairametrics reported, the company blamed the late submissions by its subsidiaries for being responsible for the delay.
The company’s unaudited 2019 financial report shows that it reported a loss after tax of N215.3 million. This is worse than the N156.2 million loss after tax the company recorded in full-year 2018.
FG places high profile Nigerians under security watch for terrorism financing
The FG has said that it is currently profiling a large number of high profile Nigerians who have been alleged to have reasonable links to terrorism financing.
The Federal Government has said that it is currently profiling a large number of high profile Nigerians who have been alleged to have reasonable links to terrorism financing.
This follows the arrest of an undisclosed number of suspects recently after the convictions of some Nigerians on terrorism financing in the United Arab Emirates (UAE).
This disclosure was made by the Attorney General of the Federation and Minister of Justice, Abubakar Malami, during a chat with the press at the Presidential Villa, Abuja on Friday.
What the Attorney General of the Federation is saying
The Minister said that the convictions of Nigerians in the UAE has given rise to wider and far-reaching investigations in Nigeria.
Malami in his statement said, “As you will actually know, sometimes back, there were certain convictions of Nigerians allegedly involved in terrorism financing in the United Arab Emirates (UAE).
That gave rise to a wider and far-reaching investigation in Nigeria and I’m happy to report that arising from the wider coverage investigation that has been conducted in Nigeria, a number of people, both institutional and otherwise, were found to be culpable, I mean reasonable grounds for suspicion of terrorism financing have been established, or perhaps has been proven to be in existence in respect of the transactions of certain high-profile individuals and businessmen across the country.
I’m happy to report that investigation has been ongoing for long and it has reached an advanced stage. Arriving from the investigation, there exists, certainly, reasonable grounds for suspicion that a lot of Nigerians, high-profile, institutional and otherwise, are involved in terrorism financing and they are being profiled for prosecution.
In essence, it is indeed true that the government is prosecuting and it’s indeed initiating processes of prosecuting those high-profile individuals that are found to be financing terrorism. It is indeed true.
However, Malami did not give the number of such suspects as he maintained that investigation was still ongoing until a conclusion is arrived at.
“As to the number, the investigation is ongoing and it has to be conclusive before one can arrive at a certain number, but one thing I can tell you is it is a large number and they are being profiled for prosecution.
It is indeed a large number and I’m not in a position to give you the precise number as at now because the profiling and investigation are ongoing.”
Malami warned that government will not hesitate to invoke the full wrath of the law on anyone found culpable in sponsoring terrorism in the country as nobody found culpable in terrorism financing will be spared.
What you should know
It can be recalled that in March 2021, the Association of Bureau De Change Operators of Nigeria (ABCON) confirmed the arrest of some of its members by security operatives over the investigation of some of their transactions which border on money laundering, terrorism financing and Know Your Customer status.
ABCON in its statement said that it considers these as serious allegations especially given the security challenges facing the country. It appealed to the authorities to expedite action to ensure that innocent people who have been caught up in this investigation can be released and so that they can return to their anxious families and resume their lives.
Nigeria’s VAT collection surges to N496.4 billion in Q1 2021
Nigeria’s VAT collection surged by 52.93% (year-on-year) to stand at N496.4 billion in Q1 2021.
Nigeria generated a sum of N496.39 billion revenue from Value Added Tax (VAT) in the first quarter of 2021, a surge of 52.93% year-on-year compared to N324.58 billion recorded in the corresponding period of 2020.
This is contained in the sectoral distribution of value added tax report, recently released by the National Bureau of Statistics (NBS).
According to the report, VAT collections in the period represents a 52.93% increase as against N324.58 billion recorded in Q1 2020; and a 9.17% increase compared to N454.7 billion recorded in the previous quarter.
The increase in VAT collections could be attributed to increased economic activity in the country, compared to the previous year, where most economic activities were put on hold as a result of the covid-19 pandemic.
- Highlights of the report showed that the manufacturing sector generated the highest amount of VAT with N49.41 billion generated, closely followed by Professional Services, having generated N42.50 billion, and State Ministries & Parastatals, which generated N26.96 billion.
- Mining generated the least, closely followed by Pioneering, Textile & Garment Industry with N48.36 million, N77.01 million, and N289.41 million generated respectively.
- Also, out of the total amount generated in Q1 2021, N224.85 billion was generated as Non-Import VAT locally while N171.66 billion was generated as Non-Import VAT for foreign.
- The balance of N99.88 billion was generated as NCS-Import VAT.
Manufacturing sector topples professional services
The manufacturing sector toppled the professional services sector to lead the list of sectors with the highest VAT remittances in the first quarter of 2021. A total of N49.41 billion was collected as Value Added Tax from the manufacturing sector.
- Professional services followed closely, having remitted N42.5 billion in VAT to the government, State ministries and parastatals stood in third position with N26.96 billion VAT.
- Others on the list include; Commercial and trading sector with N22.8 billion, oil-producing (N15.8 billion), Transportation and haulage services (N14.9 billion), Breweries, bottling, and beverages (N11.9 billion).
- Federal ministries and parastatals (N8.8 billion), banks and financial institutions (N3.3 billion), and oil-marketing (N3 billion).
Why this matters
- The increase in VAT collection is a development in the right direction, especially given the recent positive growth recorded in global crude oil prices, indicating an increase in government revenue.
- However, the government needs to intensify its effort in creating innovative ways of increasing revenue given growing overheads and statutory spending, coupled with increasing debt profile.
Nairametrics | Company Earnings
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- Afromedia Plc reports a loss after tax of N27.3 million in Q1 2021.