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18 — Vanguard, THURSDAY, NOVEMBER 24, 2022 BRAIN drain is beyond the normal migration of people to greener pastures or adventure. It involves the mass movement of a skilled workforce from one place to another. In the 1960s and 1970s, Nigeria was a great destination for skilled foreign workers such as doctors, university lecturers, high school teachers and others from sectors, the conditions of service of such places as Europe, India, the West these professionals worsened at home. Indies and Ghana. Nigerian-trained doctors, nurses and When the first oil boom ended around other healthcare professionals have 1978, the economic hardship that since maintained a steady stream of ensued triggered the first brain drain, migration out of the country to places involving the mass migration of skilled where they could find job satisfaction. Nigerians to Europe and America. In 2015, there were only 34,000 doctors Many students who went to study serving about 180 million people. This abroad no longer returned to lend their year, the number has gone down to skills to the development of the nation. 24,000, according to the Nigerian The health sector has been the hardest Medical Association, NMA. hit in recent years when some countries Meanwhile, the Worldometer estimates in Europe, America and the Middle that Nigeria’s population has climbed East became particularly interested in to over 211 million. hiring from Nigeria. Within the last year, the United With successive governments failing Kingdom alone received 1,307 to prioritise the education and health Curbing health sector brain drain Nigerian doctors. As the dearth of doctors and other health professionals approaches crisis proportions, the UK High Commissioner to Nigeria, Catriona Laing, recently told the media that she was in talks with Nigerian government officials to "prevent" brain drain in the Nigerian medical sector. From the picture already painted with the figures above, the brain drain needs reversal, not prevention, because our system is already starving. The effort to reverse the sorry situation must start with Nigerians. Our current leaders and even some of our intending leaders have virtually abandoned our public health sector, where the common citizen goes for care. They and their families travel to hospitals abroad to take care of themselves at the taxpayers’ expense, leaving our system decrepit, and the professionals poorly paid and motivated. Unless the Nigerian people take the opportunity of the 2023 general elections to elect fresh, vibrant, exemplary, and visionary leaders who have in their track records demonstrated their concern for the common people, the scourge will continue. No foreign country, no matter how well-intentioned, can solve our brain drain problem for us. Only when our government prioritises the social sector with adequate funding, equipment, and competitive welfare will we see a reduction in brain drain. A rejuvenated system will even attract foreign doctors once again. The UK and other allies can support Nigeria with funds for positive change. OPINION How to save Nigeria's N500 trillion insurance industry By ELVIS EROMOSELE LAST week, I passed by the ever-busy Computer Village and saw shop after shop loaded from floor to ceiling with laptops. I thought to myself, “What happens if there is an incident, say a fire? Do they have insurance?” I shuddered to think of the sheer loss. Insurance is not new in Nigeria, but plenty of people disagree with its acclaimed importance. Records show that the insurance business has existed in one form or another in the country since 1958. What is amazing is that after such a long time, the sector is still struggling to overcome the twin problems of ignorance and acceptance. They are related. This implies that if potential customers can appreciate the true value of the sector, it will automatically lead to more widespread acceptance. And this will naturally boost patronage, spur the growth of premium generation, and precipitate more meaningful contributions to the nation's gross domestic product, GDP. Conversely, as acceptance grows, the estimation and value of the sector will rise and spread. Solving one issue will resolve the other, and vice versa. Ignorance does not mean people cannot define insurance. It is more a lack of understanding of the way it works or how it is supposed to work. Insurance, according to Investopedia, is "a contract, represented by a policy, in which a policyholder receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured." Investopedia explains that there are different types of insurance policies. Life, health, homeowners, and auto insurance are the most common forms of insurance. The core components that make up most insurance policies are the deductible, policy limit, and premium. The truth must be said, the Nigerian insurance industry is enormous. Augusto & Co's 2022 insurance report reveals that the gross premium income, GPI, stands at over N520 trillion. This places the country 62nd in the world today. With a GDP of $443 billion as of 2020 and a population of 210 million, Nigeria is easily the largest economy in Africa. Yet, the insurance penetration rate is lower than one percent. Herein lies the problem. Take car insurance, for instance. The Nigeria Insurance Association, NIA, January 2022 report indicates that only 3.4 million out of a total of 12 million registered vehicles are insured. Also, less than five percent of Nigerians have health insurance of any sort. It is not a pretty picture. This is the real challenge; how to get more people to sign up for insurance. The issues are long-standing and seemingly insurmountable. In my mind, it is at once a problem of policy and process; an issue of promotion and progress; and a matter of personnel and professionalism. And since they are only seemingly insurmountable, they can be overcome, resolved, and improved. With close to 100 million Nigerians living below the poverty line, it is no surprise that many cannot afford to pay insurance premiums under the current arrangement. The bulk of the population lives from hand to mouth, so there is little room for anything else when the bare essentials are barely taken care of. Only affordable and flexible insurance with a clear highlight of the core benefits will appeal to Nigerians. What would work is something that does not tax the pocket or the mental capacity of the man on the street. People who find funds to load recharge cards, make sports bets, and go on the occasional weekend treat, can find the money for premium if it makes sense to them. When people talk of ignorance of insurance, it is beyond a lack of knowledge of its existence. It is a question of trust. True mass acceptance is necessarily a function of ubiquitous access and trust. Once people see why, nothing can stop them from investing in the future through insurance. This brings us right back to education, awareness, and access. The only way to be assured of a future is for the insurance industry as a whole to undergo radical change. The current cosmetic makeup does not cut it. The industry needs a major makeover. The regulators must look at policies that will fundamentally change the way the industry conducts its business, engages with its customers, and, in fact, who can engage in the business. The call is for a truly functional microinsurance scheme. In the recent past, Nigeria had mobile insurance offered by a The only way to be assured of a future is for the insurance industry as a whole to undergo radical change; the current cosmetic makeup does not cut it telco, but it failed. No! It was not because it was not viable, it was due more to resistance and regulatory issues. Think of how impossible mobile money has looked in Nigeria and how it has thrived spectacularly in other climes (read Kenya). The only real difference was policy formulation and the regulatory framework. Mobile money is only now beginning to look feasible and viable. What changed? Simple policy and regulatory requirements. But I digress. The International Association of Insurance Supervisors, IAIS, defines microinsurance as "the protection of low-income people against specific perils in exchange for regular premium payments appropriate to the Send Opinions & Letters to: opinions1234@yahoo.com likelihood and cost of the risk involved." According to the IAIS, the term refers to servicing a specific income segment in emerging market jurisdictions where the insurance markets are not well-developed. Nigeria fits this bill to a T. To be fair, experts argue that micro-insurance works in much the same way as conventional insurance, except that it is targeted at low-income households, specifically the working poor, who have few or no financial reserves and incomes that fluctuate considerably. The National Insurance Commission, NAICOM, the regulator of the insurance sector, has explained that it is actively pursuing the execution of various regulatory and market development initiatives intended to uplift the insurance sector to a global standard. Industry watchers insist that the Commission is doing well. I believe that the Commission must now take another look at the micro-insurance market. It is currently barely scratching the surface. To get going and truly thrive, it needs favourable policies, legal and regulatory adaptations, and sector-wide institutional capacity building. Firms that will provide the service must understand how it has evolved. The license fees should be affordable for operators. Naturally, there would be close monitoring of the operations to prevent abuse and ensure that they stay on the straight and narrow.While typically, microinsurance can be delivered through a variety of institutional channels, including licensed insurers, healthcare providers, community-based organizations, and non-governmental organizations, in Nigeria, the ubiquitous reach of telecom services, the grassroots know how of microfinance banks, and the depth of academic institutions, make them good candidates to drive such a scheme. Continues online:www.vanguardngr.com •Eromosele, a Corporate Communication professional and public affairs analyst lives in Lagos.

Foreign Portfolio Investments rise 11.8% to N321bn By Peter Egwuatu NIGERIA’s Foreign Portfo lio Investments, FPIs, has risen to N321.04 billion in the third quarter of 2022, Q3’22, about 11.8 per cent higher than N287.2 billion recorded in the corresponding period of 2021, Q3’21. FPI represents value of foreign investments in the Nigerian stock market. Though usually called ‘hot money’ because of the speed of entry and exit, analysts believe the higher balance in the FPI position is attributable to the inability of the investors to move out their money due to unavailability of foreign exchange. Meanwhile, the value of retail investments in the stock market continued to rise hitting N556.78 billion in Q3’22, about 27.5 per cent increase as against N436.53 billion in corresponding period of 2021. Analysts attributed this increase to improved investors’ confidence occasioned by several changes that have taken place in the market environment this year. “Through regulatory interventions by Securities and Exchange Commission, SEC and Central Bank of Nigeria , CBN, new rules have been made to regulate several unregulated practices in the capital market, especially margin trading which mismanagement caused the credit boom that precipitated the dangerous asset bubble have led to increased investor confidence”, analysts noted. Vanguard’s findings from the Nigerian Exchange Limited, NGX, shows that foreign investors’ contribution to the entire value of transactions at N1.97 trillion in Q3’22 was 16.3 per cent while retail investors’ contribution stood at 28.3 per cent. Commenting on the FPI position, analyst and CEO, APT Securities & Funds Limited, Mallam Garba Kurfi, said: “We are not surprised at the increase in the Foreign Portfolio Investments, which was due to lack of VISIT TO LABORATORY —— From left: Director General, Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh OFR; Honourable Minister of Transportation, Mu’azuJaji Sambo; Secretary General, International Maritime Organisation (IMO), His Excellency Kitack Lim; and Permanent Secretary, Federal Ministry of Transportation, Dr. Magdalene Ajani at the Marine Pollution Laboratory section of the Nigerian Maritime Resource Development Centre, Lagos. Poor Electricity: TCN blames GENCOs, DISCOs for grid collapses CURRENCY BUYING SELLING US DOLLAR POUNDS EURO FRANC YEN CFA WAUA RENMINBI RIYAL RAND Danish Krona 160.45 -1.35 2403.00 + 22.00 19.61 - 0.13 84.56 - 3.54 87.65 +5.12 442.76 443.26 443.76 525.7775 526.3713 526.965 454.5374 455.0507 455.564 463.6716 464.1952 464.7188 3.1359 3.1395 3.143 0.6719 0.6819 0.6919 576.3837 577.0346 577.6855 62.0103 62.0808 62.1513 117.8023 117.9353 118.0684 25.6548 25.6837 25.7127 59.0766 59.1438 59.211 CBN Exchange rate as at 23/11/2022 MARITIME By Mariam Eko THE electricity Trans mission Company of Nigeria, TCN, has said that lack of capacity in the electricity Generation Companies, GENCOs, and the Distribution Companies, DISCOs, is the main reason for the incessant collapses in the national grid. The country’s power grid has collapsed about seven times this year, with the last collapse on September 26. At the backdrop of this the chairman, Technical and Monitoring Committee of TCN governing board, Mr. Nsima Ekere, stated that TCN was in the process of installing a supervisory control and data acquisition, SCADA system which would address the inconsistency leading to grid collapse. Ekere made this known at the inspection of TCN warehouse and some key substations by the committee board members of TCN in Lagos. According to him, “Grid collapse and network reliability is not TCN’s fault but majorly from the GENCOs and DISCOs as they take more power and sometimes less, which ultimately impacts negatively on the national grid. “The average generation in the country is from 3,000mw to 4,000mw which is less than 40 percent of the present capacity, but with the transmission expansion projects ongoing, in the next two or three years the capacity would be doubled. “There is need for the GENCOs and DISCOs to step up their capacity, make commensurable investments, work on infrastructure and improve on their capacity to take power and distribute in order for Nigerians to enjoy some level of stability in power supply.” He added, “TCN is in the process of installing a supervisory control and data acquisition, SCADA, system and once this is fully deployed, it will help to a large extent with reliability and eliminate grid collapses.” At the visit to Lagos-west substation in Ayobo, the General Manager, Lagos west substation of TCN, Mr. Mojeed Akintola, said the substation had the capacity to wheel 1,050mw, adding that it would supply three distribution companies namely, Eko Electricity Distribution Company, Ikeja Electric and some parts of Ibadan Electricity Distribution Company. Vanguard, THURSDAY, NOVEMBER 24, 2022 — 19 Foreign Exchange that prevented the foreign investors from repatriating their funds; they rather buy back stocks and dividend received which cannot be taken away. They rather buy more stocks. There are very few that decided to bring additional funds in order to take advantage of the low price of the stocks.” On projection for the Q4’22, he said: “As a result of devaluation of Naira we are expecting more inflow to take advantage of the low price stocks as most of the blue chips are trading at 53 weeks low.” ENERGY Commenting as well, an investment banker/Chartered Stockbroker, Tajudeen Olayinka, said: “The urge to move capital around the world for greater portfolio return (capital mobility) and the effect of inflation on nominal values could be responsible for nominal increase in the value of investments by foreign portfolio investors. However, the fact that economy and market did not really feel the impact of such level of capital flow, means that rising inflation and exchange rate movement were largely responsible for the level of increase we saw in the nine months of 2022. “Since the figure for retail investors is also a nominal value, it follows clearly that inflation and reinvestment of dividends could have been responsible for the increase in nominal value of investment by that class of investors.” Orji Kalu, PowerChina sign $500m Agro-industrial parks deal By Emma Ujah, Abuja Bureau Chief By Nkiruka Nnorom WAVELINE Growth Partners Limited, a Lagos-based Microfinance Institution (MFI), said it is poised to clinch a leadership position in the microfinance sector through creation and rendition of unique products and services to its clients. The company also said it is set to raise N500 million to expand its business. The Chief Executive Officer, Mrs Taba Peterside, who spoke at the company’s five-year anniversary celebration in Lagos, said that Waveline has disbursed over 2000 loans worth more than N300 million since its IMO Sec Gen opens NIMASA new headquarter INDUSTRY THE Secretary General of the International Maritime Organization, IMO, Mr. Kitack Lim, has commissioned the ultra-modern headquarters of the Nigerian Maritime Administration and Safety Agency, NIMASA, located at Victoria Island, Lagos. Speaking during the commissioning of the building, the IMO boss expressed confidence in the leadership of the transport sector of Nigeria while also extolling the dynamic role of the Minister of Transportation, Engr. Mu’azu Jaji Sambo, and the heads of the various parastatals FORMER Governor of Abia State, Sen. Orji Kalu and PowerChina has signed a deal for the establishment of five agro-industrial parks worth $500 million in different parts of the state. Kalu is facilitating the parks through SWIBER Africa in Alayi, Igbere, Ozu Item, Abiriba and Ukwueke. According to him, PowerChina and SWIBER Africa would jointly fund the project to be handled by the Chinese firm. The former governor said that the industrial parks would fulfil objectives of providing employment opportunities for members of the communities and raising foreign exchange for the country. According to him, “everything produced in the industrial park “will go to feeding Nigerians and export”. The Managing Director of PowerChina Nigeria, Mr. Diego Tian, said that the industrial parks would focus on the production and processing of rice, cassava and cashew nuts and related products. He added that the parks which will occupy about 11,000 hectares land would create new industries around agriculture, boost Nigeria’s self-sufficiency in food security and create at least 20,000 direct jobs. He also said that they would have rice mills, processing plants for cassava and cashew nuts and warehousing for them, in addition to the production of Ethanol and starch. Electricity power generation, he said, would be part of the project which has been slated to take off at the beginning of next year. Waveline Growth Partners targets leadership position *Expresses confidence in the maritime sector leadership inception in 2017. According to her the MFI would deploy improved technology and financial services professionals to redefine the business. She stated: “In addition to increasing our lending operations, we also plan to broaden our product base to include micro pensions and insurance, among other offerings to deepen our clients’ engagement with the formal economy. “Looking ahead, we are excited to be part of all the innovations taking place in Fintech, and look forward to further expanding our financial inclusion and empowerment mission through technology and partnerships,” Peterside said. under the supervision of the Transportation Ministry. He also harped on the importance of the human competency and capability in the sector adding, however, that leadership is the most paramount, as has been exhibited at the Transportation ministry. Speaking also at the event, Sambo expressed gratitude to the IMO scribe for having a first-hand opinion on the developmental strides in Nigeria’s maritime sector. He stated that Nigeria will strive to ensure Nigerian maritime activities are in line with best practices, while also embracing new technologies in the frontier of global maritime discourse. Jamoh expressed appreciation to the IMO boss for his goodwill to the Nigeria maritime sector. He informed him that NIMASA has embarked on various projects in the year, 2022, all with the aim of ensuring a robust and conducive maritime environment is attained in Nigeria.

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