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ENDSARS

#ENDSARS: Insurance firms brace up for claims

Insurance Firms in Nigeria are set to incur claims following the violence and looting across Lagos.

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#ENDSARS: Insurance firms brace up for claims

Insurance firms in Nigeria will be bracing up for potential claims, following the widespread looting and destruction of properties, vehicles, and other assets across the state.

Most government offices, banks, shopping malls, media houses, toll plazas, and private offices were set ablaze by suspected hoodlums on Wednesday, October 21, 2020, after soldiers reportedly shot in the air to disperse protesters on Tuesday night. This triggered scores of skirmishes across the state with several vehicles, buildings, and properties set ablaze or looted by suspected hoodlums.

READ: #EndSARS: NPA headquarters set on fire by hoodlums

It is expected that when things return to normal, businesses will start to take stock of their losses and someone will have to bear the cost. While most insurance contracts exclude damage to property from war, riots, or other forms of force majeure, it is likely that some will pay for the risks.

According to NAICOM, Insurance companies paid a total non-life insurance claim of N64 billion in 2018 compared to N56.4 billion a year earlier. Out of this total, claims on fire insurance were about N9.1 billion while Motor Vehicle was N17.3 billion.

READ: Report any employer without Group Life Insurance for employees – PenCom

The Insurance sector is currently reeling from the effect of the Covid-19 pandemic, with the sector posting a contraction of 29.53% in the second-quarter GDP report published by the National Bureau of Statistics (NBS). It is likely to drop into a recession when the NBS releases its third-quarter GDP report in a few weeks’ time.

Nigerian President Muhammadu Buhari addressed Nigerians on Thursday, demanding an end to the violence in parts of the country as a result of the activities of hoodlums who took advantage of the EndSARS protests.

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READ: Insurance: Recapitalisation exercise sets consolidation in motion 

“In the circumstances, I would like to appeal to protesters to note and take advantage of the various well-thought-out initiatives of this administration designed to make their lives better and more meaningful and resist the temptation of being used by some subversive elements to cause chaos with the aim of truncating our nascent democracy. For you to do otherwise will amount to undermining national security and the law and order situation. Under no circumstances will this be tolerated,” Buhari said.

The President also called for an end to the street protests, requesting that protesters should engage the government. He also asked Nigerians to go about their “normal businesses” while demanding that security agencies protect lives and properties.

READ: Insurance firms are reportedly selling off assets to meet NAICOM’s recapitalisation deadline

“And I call on all Nigerians to go about their normal businesses, and enjoin security agencies to protect lives and properties of all law-abiding citizens without doing harm to those they are meant to protect,” he added.

In one of the most viral tweets from an organization that was badly affected by the looting, supermarket chain Spar tweeted a message of hope and optimism despite suffering massive losses from the activities of hoodlums and miscreants.

READ: Nigeria’s Historical Annual GDP Growth Rate Since 1982 – Updated 2017

Jaiz bank

The company tweeted:

“Our Lekki store has been vandalized and looted. But, we acknowledge that this is only a setback compared to the larger issues we are all facing as a nation, and our thoughts and prayers remain with Nigerians everywhere, and for a peaceful resolution to various issues at hand. Rebuilding a supermarket is hard. Rebuilding a nation is even harder. We stand with you Nigeria. Stay focused. Be the solution.”

Hoodlums were caught on video carting away several items ranging from electronics, food items, equipment, goods, and several valuable items belonging to businesses. Shopping malls were also attacked and looted.

Explore Data on the Nairametrics Research Website

Bottom Line: The President’s speech fell short of expectations of a lot of Nigerians, but is expected to quell tensions as soon as possible.

  • Some residents have gathered together to defend their neighborhoods.
  • Soldiers and Riot Policemen have been deployed across major cities to try to calm tensions and bring about law and order.
  • This should stop the looting and arson that have destroyed businesses, and by extension, will limit the claims that insurance companies may have paid.
  • Businesses are expected to return fully to their offices early next week and only then can Nigerians begin to ascertain the value of losses incurred in the aftermath of the looting.

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

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    Business News

    Lekki Tollgate Shooting: US says security forces shot in the air, no information on fatalities

    The U.S Government has said that the Nigerian security forces fired shots into the air to disperse #EndSARS protesters at the Lekki Toll Gate.

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    Victims of #EndSARS protest receive interest free loans worth N10.5 million, #EndSARS: A day by day timeline of the protest that has brought Nigeria to its knees.

    The United States Government has said that the Nigerian security forces fired shots into the air to disperse #EndSARS protesters at the Lekki Toll Gate in Lagos on October 20, 2020.

    This contradicts allegations from media reports that some eyewitnesses saw soldiers firing live ammunition at the peaceful protesters.

    This disclosure is contained in the 2020 Country Reports on Human Rights Practices: Nigeria released by the US Department of State on Tuesday, March 30, 2021.

    The report pointed out that there was no accurate information on the number of fatalities from the shootings contrary to Amnesty International’s report that 10 people died during the incident as a result of gunshot wounds.

    READ: Lagos State police says no protest happened at Lekki Tollgate, describes viral video as fake

    What the report on Human Rights Practices on Nigeria is saying

    The report partly reads, “On Oct. 20, members of the security forces enforced curfew by firing shots into the air to disperse protesters, who had gathered at the Lekki Toll Gate in Lagos to protest abusive practices by the Nigerian Police Force’s Special Anti-Robbery Squad (SARS).

    Accurate information on fatalities resulting from the shooting was not available at year’s end.

    Amnesty International reported 10 persons died during the event, but the government disputed Amnesty’s report, and no other organisation was able to verify the claim.

    READ: Lekki shooting: LCC video footage shows soldiers arriving in several trucks

    The government reported two deaths connected to the event. One body from the toll gate showed signs of blunt force trauma.

    A second body from another location in Lagos State had bullet wounds. The government acknowledged that soldiers armed with live ammunition were present at the Lekki Toll Gate.”

    What you should know

    • It can be recalled that in the aftermath of the alleged shooting of #EndSARS protesters at the Lekki Tollgate, US-based media outfit, Cable News Network (CNN), in its investigate report, aired a video allegedly showing Nigerian soldiers shooting at unarmed protesters at the tollgate, based on video evidence from mobile phones and witnesses.
    • The Federal Government in its response insisted that the military did not shoot at the #EndSARS protesters, describing the alleged mass killings as a massacre without bodies.
    • Also, President Muhammadu Buhari, while expressing his disgust at the coverage of the incident by foreign media organisations like CNN and BBC, said that their reports on the EndSARS protests were not balanced.

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    Business

    ICPC Chairman reveals #EndSARS protests was financed with cryptocurrency

    ICPC Chairman has revealed to the Nigerian Senate that the #EndSARS protest was largely funded with cryptocurrency.

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    School feeding, ICPC, FIRS moves to stop tax evasion with newly launched intelligence system 

    The Chairman of Independent Corrupt Practices and Other Related Commission (ICPC), Bolaji Owasanoye has revealed to the Nigerian Senate that the #EndSARS protest was largely funded with cryptocurrency.

    This is as he said there are strong indications that it could be used to fund Insurgency in the country.

    According to a report from Vanguard, this disclosure was made by the ICPC Chairman, during an interactive session with Senate Joint Committee on Banking, ICT, Cybercrime and Capital Market led by Senator Uba Sani on Tuesday, February 23, 2021.

    READ: ICPC uncovers N9.8 billion Government money hidden in Aso Savings

    The Joint committee was mandated to look at the decision of the Central Bank of Nigeria (CBN) to ban Cryptocurrency in Nigeria.

    The ICPC boss while supporting the position of the CBN, said that the nature of operations of Cryptocurrency exposes it to money laundering and terrorism financing.

    Meanwhile, the Nigerian Financial Intelligence Unit (NFIU) has said that the agency averted a $3million fraud linked to 20 bank accounts.

    READ: ICPC moves against NDDC top management over corruption allegations, quizzes directors

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    Owasanoye further explained that the anti-graft agency currently has a number of cases linked to Cryptocurrency but is unable to track the suspects.

    He brought the attention of the Senate to a period in 2018 when a number of globally rated financial institutions said their financial statements had been hacked with the perpetrators asking to be paid in Cryptocurrencies.

    ICPC Chairman noted that the CBN as a regulator has the responsibility to ensure sound financial stability and it will be difficult to achieve in the case of Cryptocurrencies where the players are anonymous.

    While sharing the experience of the Indian Supreme Court and how it ruled and admitted that it does not know what it is, he urged the Lawmakers to as a matter of urgency, take decisive action against Cryptocurrencies.

    READ: Most powerful financial leader takes side with CBN, says Bitcoin is untrustworthy

    What you should know

    • It can be recalled that the CBN had directed the financial institutions to immediately close the accounts of such persons or entities transacting in or operating cryptocurrency exchanges, warning of severe regulatory sanctions in the event of any breach of the directive.
    • The apex bank warned the Deposit Money Banks, Non-Financial Institutions and other Financial Institutions against doing business in crypto and other digital assets.
    • The latest directive is coming after the CBN had in 2018 stated that cryptocurrencies are not legal tender and as such are illegal.

    Continue Reading

      





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