Author: The Nation

  • Impact of pension funds on financial services sector

    Over the last 15 years, the pension sub-sector of the financial services sector has done well by securing a better future for workers. Huge cash has also been saved.  Omobola Tolu-Kusimo writes on the future of the sector in another 15 years time.

     

    Fifteen years ago, Nigeria’s pension administration was in disarray. Fast-forward to now, the sector has become a veritable source of critical growth in the country with N9.4 trillion accumulated pension fund.

    Besides, the pension space has been one bright stopshop for the financial services sector. Also, about nine million pension contributors now have a secured future after retirement.

    Following a pension reform that commenced in 2004, the pension fund rose from over N2 trillion deficit in 2004 to N9.4 trillion as at August this year.

    The reform was necessitated by the many problems bedeviling the public and private sectors’ pension schemes in the country. In the public sector, the Defined Benefits Scheme (DBS) was faced with the problem of huge liabilities arising from lack of adequate and timely budgetary provisions as well as increases in salaries and pensions.

    Pension administration was largely weak, inefficient, less transparent, cumbersome and marred with corrupt practices.

    Many private sector organisations   did not have any pension arrangement for their employees and where it existed, it was characterised by very low compliance ratio due to lack of effective regulation and supervision of the system.

    After a thorough consideration and detailed evaluation of these issues, the Federal Government decided to take measures aimed at developing a system that is sustainable and has the capacity to achieve the ultimate goal of providing a stable, predictable and adequate source of retirement income for employees in both the public and private sectors in the country.

    This led to the enactment of the Pension Reform Act 2004 (PRA 2004), which introduced a mandatory Contributory Pension Scheme (CPS) for employees of the Federal Government, the Federal Capital Territory and the private sector organisations with five or more employees.

    The Act also established for the first time in the country, a regulator and supervisor of pension matters, the National Pension Commission  (PenCom).

    The PRA 2004 was subsequently repealed and replaced in 2014 by the Pension Reform Act 2014 (PRA 2014), which, among other things, enhanced the benefits accruable to the contributor on retirement,  enhanced the protection of pension fund assets and unlock the opportunities for the deployment of pension assets for national development.

    It also reviewed the sanctions regime to reflect current realities, provided for the participation of the informal sector and also expanded the coverage of the CPS to include employees of states and local government areas.

    The scheme introduced by the 2004 pension reform is contributory in nature, fully funded, managed and kept in custody by private operators and is based on individual portable accounts.

    The key objectives of the scheme are to ensure that every person who has worked in either the public or private sector receives his/her retirement benefits as and when due;  assist improvident individuals by ensuring that they save to cater for their livelihood during old age; to establish a uniform set of rules and regulations for the administration and payment of retirement benefits in both the public and private sectors; to stem the growth of outstanding pension liabilities; and to reduce fiscal cost to government, stimulate domestic savings, generate pool of long term funds for developmental projects and increase private investments.

    These objectives and many more seems to have been significantly achieved within the 15 years of the reform.

    Head, Branding & Communications, Pension Fund Operators Association of Nigeria, Wale Odutola said the monies from the pension fund have been deployed into critical areas of the economy.

    Odutola who is also the Managing Director, ARM Pension Managers, said the deployment is perhaps not as diversified as expected to fully support the growth in the economy but they are on the right path.

    He said what is most crucial to the industry now is how the fund will have more impact in the next 15 years.

    He noted that the sector sees the next phase of growth in micro pension but noted that it is going to be hard.

    He said: “We have had 15 decent years within the pension space but the next 15 years are probably even more important because the challenge then becomes:  How do we grow from about N10 trillion to N20 trillion? And by growing, I am not talking about investment performance but how we will add more people to the pension industry such that the we all can begin to benefit from it and have some sort of security when we retire. This remains the biggest challenge for us as a sector.

    “We were having subscribers in the high of between 10 and 20 per cent in the first 10 years in the sector but that has slowed to like below 10 per cent to about 12 per cent. Clearly, growth has slowed considerably in the sector. So how do we push and ensure that coverage is more widespread and more people join the scheme? So we are looking at the next phase of growth.

    “The next phase of growth for us is in micro pension. But it is not an easy prospect to grow because first of all, historically in Nigeria, we don’t have a strong savings culture. Secondly, micro pension scheme is not compulsory like the CPS. Thirdly, the macro issues that we have where we see unemployment rate increase over the last two years, and the spending power of Nigerians diminish over the last two years also makes it very challenging. So with all these challenges, the question is how do we make sure that the micro pension initiative is successful and increase coverage of Nigerians.”

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    The Head, Corporate Communications, National Pension Commission (PenCom), Peter Aghahowa said part of the achievement is PenCom’s significant progress in building institutions.

    He noted that presently, there are 22 Pension Fund Administrators (PFAs), four Pension Fund Custodians and six Closed Pension Fund Administrators; as well as systems and processes in the implementation of the CPS which according to experts, can stand the test of time.

    He said there is no other sector in the financial services sector that has consistently, over such a short period of time, grown so much capital from almost nothing to about N9.5 trillion.

    He further disclosed that the PFAs have registered 28,000 informal sector workers comprising members of textile, garment and tailoring associations, Keke Napep and okada riders’ associations, butchers associations, and workers in the movie and performing art industry into the Micro Pension Scheme as at October 2019.

    “Up till June 2019, 21,430 participants were registered under the micro pension and 221 participants were registered as at July 2019. As at August 2019 1,299 participants were registered by 19 PFAs under the micro pension scheme and 2,737 participants were registered as at September 2019,” he said.

    He listed low financial literacy, low registration; low awareness about the scheme and inadequate platform to support the scheme.

    He however assured that the commission is doing everything possible to end the challenges confronting the scheme.

    According to him the commission is engaging and working with National Identity Number (NIN) and other agencies to resolve the issues.

     

     

  • Pension complaints and solutions

    ANA: In care of Nigeria Immigration Services Nasarawa State Command, Lafia, Nasarawa State. The Editor, The Nation Newspaper, 27B Fatal Atere way, Matori, Lagos. Attention: Omobola Pension Solution. Complaint For The Payment Of Outstanding Pension And Gratuity Sum of N 1,723,275.33. Omobola, kindly assist me solve this problem. I am Mr. Tor, a retired officer with the Nigeria Immigration Services. I was in service at the time of introduction of PenCom in 2004. By 2006, I registered with first Alliance Pension and benefits limited in the first instance which has now metamorphosed into ARM pension managers. But certificate issuance was unusually delayed and no explanation was advanced. This unexplained delay created anxiety prompting me to register with another pension manager, Stanbic IBTC pension Managers with a different pin number. I retired in May, 2016. By December 29, 2016, I applied for harmonization of my pension managers to the PenCom into one pension manager to facilitate payment of my pension. PenCom replied me in a letter dated 1st February, 2017. In the said reply, PenCom recognized the first Pin registered with ARM as a valid PIN. That Stanbic IBTC PIN is considered invalid. That ARM Pension would retain the first valid Pin on its data base while Stanbic IBTC Pension Managers would de-activate the second invalid Pin from its data base. They (PENCOM) advised that I should maintain Retirement Saving Account Pin with ARM for all pension transactions. PENCOM also promised to reconcile the contributions in the valid Pin to ensure that total contributions there in are brought up to date accordingly, while that in the invalid PIN (if any) would be refunded to the Federal Government through its accounts with the central bank of Nigeria. To my surprise, PENCOM did not abide by their promise. Consequently, by May 2017, PENCOM paid the Accrued right-R-FGN of six million, one hundred and eighty one thousand (N 6,181,000.00) naira only into the invalid retirement saving account (RSA) of Stanbic IBTC which had a less amount of four million, two hundred and thirty seven thousand, three hundred and forty eight naira seventy seven (4,237,348.77) kobo only, while the valid pin which had Five Million, four Hundred and fifty nine thousand eight hundred and sixty nine naira sixty seven (5,459,869.67) kobo only as at that time was abandoned. This was the beginning of short payment of my pension. By October, 2018 when I discovered that a sum of N5,459,869.67 was still hanging in my valid RSA PIN, I wrote to PENCOM through my lawyer demanding a balance of N1,189,019.17 by my calculation as at that time. PENCOM did not reply my first letter. On the 15-01-2019, I wrote to PENCOM again, but as I write to you now PENCOM did not deem it fit to reply any of the letters. On the 15th April, 2019, I wrote to ARM demanding for the payment of the money domiciled in my RSA. I made it known to them that the money in my RSA with them is part of my salary deductions remitted by the Nigeria Immigration Service in accordance with the PENCOM law of 2014. To my surprise again, ARM replied on the 18th April, 2019, that they were directed by PENCON to evacuate the amount with them which now stand at N5,860,624.10 to Contributory Pension Account (CPA). Consequently, my request cannot be met since my account balance with them now stand at zero. Sir, please, help sort out this problem of shortfall from my pension payment. Also, I want to know what has become of my salary deduction remitted into my valid RSA with ARM by Nigeria Immigration Service now evacuated into Contributory Pension Accounts.

    Read Also: Pension complaints and solutions

     

    THE NATION: The Nation will intervene by sending your complaint to PenCom. Do watch out for the newspaper publication next Wednesday for a response from the commission and subsequently every week for pension news.

    ABDULHAKEEM: I am Abdulhakeem and the Next of Kin to my late mothers (Halimat S Rabbit) benefits. I have filed all necessary documents since June 2018 and nothing is forth coming and money is supposed to help the family. I hope u hear my cry and assist us. thank you and God bless.

    THE NATION: The Nation will intervene by sending your complaint to PTAD. Do watch out for the newspaper publication next Wednesday for a response from the commission and subsequently every week for pension news.

    OYELADE: I am Mrs. Racheal from National Identity Management Commission. I have done verification since August 2016, but PTAD has not paid till date. My Pension Account Number is Annonymous and with Sigma pension. I am helpless living a hard life. Please, kindly assist me so that I can take care of my health.

    THE NATION: The Nation will intervene by sending your complaint to PTAD. Do watch out for the newspaper publication next Wednesday for a response from the commission and subsequently every week for pension news.

  • UTL simplifies assets transfer with N50,000 Will

    With N50,000 only, Nigerians can have access to asset management and estate planning as UTL Trust Management Services Limited seeks to leverage technology and innovation to open up the trusteeship industry to the public.

    Managing Director, UTL Trust Management Services Limited, Mrs Olufunke Aiyepola, said the firm’s award-winning platform, Willpower was the first dedicated will-writing platform in Nigeria, which provide asset owners with ease of management and transfer.

    She said Willpower, which has won three awards for its ease of use, accessibility and flexibility, combines with UTL’s over five decade experience in trusteeship to provide a robust estate planning solution. Formerly Union Trustees Limited, UTL was established in 1966. It holds dual licences for trusteeship and portfolio management from the Securities and Exchange Commission (SEC).

    “Our online will writing service, Willpower, has discredited the myth about Will writing. This service is encouraging the populace to tidy their affairs and protect their loved ones. Nigerians in the Diaspora can now write their Will from any part of the world and file same in Nigeria,” Aiyepola said.

    She noted that UTL has over the decades provided services to all categories of persons by ensuring that its product offerings in trusts and fund and portfolio management are designed to cater for all strata of society with a thorough understanding of the peculiarity and value proportion of each segment.

    Aiyepola said UTL’s affordable services were designed to protect assets and ensure seamless transfer.

    “Willpower, as an estate planning solution, has been provided to ensure the completion of the financial planning cycle. It empowers adults to secure the future of their assets, family and dependents seamlessly. Whether from the comfort or privacy of the home or business place, adults can create the appropriate estate planning vehicle that meet their requirements,” Aiyepola said.

    She pointed out that as a trustee, UTL’s role is that of an independent third party which protects the interests of the diverse parties by ensuring that transaction arrangements are properly documented according to the intentions of the parties, covenants are enforced, and obligations honoured as and at when due.

    According to her, UTL in its 53 years of existence has been offering superior trusteeship services to both local and foreign clients. Aside from its role as trustees to bonds and collective investment schemes, the firm also provides security trustees holding security interests over assets pledged as collateral for multiple lenders or creditors in bank syndicated and club lending, trustees to various employee welfare benefits such as share trusts, profit sharing schemes and superannuation funds and trustees and executors to trusts and wills.

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    “We administer several estates in Nigeria and the Diaspora and are Trustees to many trust arrangements such as education trusts, living trusts, family welfare trusts as well as other purpose specific trusts. UTL has also been appointed severally by courts in different States in Nigeria to administer disputed estates. Our members of staff are duly certified in trust and estate planning and are quite adept at rendering private trust services,” Aiyepola said.

    She explained that contrary to the wrong restrictive notion of trustee services, UTL’s trusteeship services extend to several foundations and endowments, including management of scholarships from secondary to tertiary education in Nigeria as well as conduct of qualifying examinations, interviews and placements of students across the federation.

    She pointed out Willpower was adjudged the best non-bank financial planning product and service in 2019 at the Banks and other Financial Institutions (BAFI) award organised by BusinessDay while the firm was also recognised as the Innovative Trustee Firm of the Year 2019 at the recently held 5th Nigeria Finance Innovation Awards 2019.

    The BAFI’s Awards Review Committee stated that it decided on Willpower as a finalist because of its practical approach to solving the perennial problem faced by most Nigerians who complain of the complexity, and extensive time commitment involved in the preparation of a Will under the traditional model of face time with a lawyer or other confidante.

    Aiyepola urged Nigerian employers to improve their staff welfare packages to include Willpower as part of their retirement plans and benefits, such that the issue of dependents suffering untold hardship after the demise of their breadwinner is eliminated.

    She assured that UTL will remain true to its mission of being the trustee company to trust while creating an environment where corporate and natural persons utilise trust solutions for their everyday affairs.

     

  • C & I Leasing’s N3.23b rights issue opens

    C & I Leasing Plc has opened application list for its N3.23 billion rights issue, paving the way for investors to pick up their rights.

    Application list for the rights issue opened on Monday November 18, 2019 and will close on Friday, December 27, 2019.

    C & I Leasing is seeking to raise N3.23 billion from existing shareholders through a rights issue of 539 million ordinary shares of 50 kobo each at N6 per share. The rights have been pre-allotted on the basis of four new ordinary shares of 50 kobo each for every three ordinary shares of 50 kobo each held as at the close of business on Wednesday, September 04, 2019.

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    The company would use the net proceeds of the offer to bolster its working capital and increase leasing assets.

    C & I Leasing had in January 2019 concluded a massive share reconstruction that saw cancellation of 1.479 billion ordinary shares of 50 kobo each, about 79 per cent of the company’s pre-consolidation issued share capital.

    The share capital reconstruction had reduced the leasing company’s outstanding shares from 1.883 billion ordinary shares of 50 kobo each to new total outstanding ordinary shares of 404.25 million ordinary shares of 50 Kobo each.

    Under the share consolidation, four ordinary shares of 50 kobo each were consolidated into one ordinary share of 50 kobo each.

    The company had stated that the purpose of the reconstruction was to allow the company to have enough unissued shares to accommodate the conversion of the Abraaj loan stock to ordinary shares and to raise additional capital through the capital market for business expansion.

    AbraaJ Investment Management Limited (AIML) had earlier indicated its intention to convert its $10 million loan in C & I Leasing to equities in the Nigerian leasing company. The conversion followed the 2018 maturity of the $10 million unsecured, coupon redeemable, convertible loan stock in C & I Leasing.

     

     

  • Management experts proffer solutions to inertia

    By Victor Odiase

     

    Experts have identified strong vision, values, flexible strategies and determination as part of driving force to break away from stagnation and achieve significant personal and business successes.

    At a one-day transformational workshop on “Overcoming the Law of Inertia” organised in Lagos by Hanan Consulting, management experts said stagnation in business and personal endeavours is usually due to absence of strong vision, mission and passion to transform dreams into reality.

    Director, John C Maxwell Team and Consultant, JF Consulting, United Kingdom, Mr Emmanuel Jones, said the world is a volatile, ambiguous, complex and uncertain and as such people must have strong vision to be able to keep up with inevitable changes.

    According to him, to survive the fast changing dynamics of the business world, existing and new business owners must be ready to make critical choice at every given chance in order to drive the much-needed change.

    “You must make a choice to take a chance or you will never change,” Jones said.

    He outlined that in order to break away from inertia, people must have clear vision, know their potential to fulfill their vision, develop a concrete plan for their vision, possess passion for their vision, believe in their vision and understand the process of their vision.

    Read Also: WAI: War Against Inertia

     

    He also underscored the need to set priority for one’s vision and to understand the influence of others on such vision.

    Managing Director, Nitro 121, Mr Lampe Omoyele, outlined the three key elements of personal brand identity to include vision, value and verve.

    He noted the need for proactive change management noting that many people and organisations have become irrelevant today because they did not anticipate or adapt to change.

    According to him, people must identify their personal brand purpose and proposition and establish and live their core values with courage in order to develop a viable personal brand identity.

    “Use your time, talent and treasure wisely, keep right company, network with purpose, show etiquette, drop self-limiting habits and cultivate new positive ones, be the best you can be, unlearn, learn, relearn, try new things and stay relevant,” Omoyele, a former marketing director at Airtel Nigeria, said.

    Founder, School of Consulting, Mr Shola Ajani, spoke about recognizing one’s space, growing it and staying there.

    He identified seven steps to overcoming inertia and implement change including starting with those small positive actions like research, creating a daily routine of steady actions, being specific, believing in one’s will power, not worrying about small disappointment, rewarding oneself and enlisting support of others in other to create positive peer pressure.

    “An accountability partner or a supportive community increases your chance of success. Don’t go it alone. Check in with these people regularly. Tell them about your project. Have them ask you about it when they see you. You can’t fall off the radar when you enlist support,” Ajani said.

    Managing Partner, Hanan Consulting, Idongesit Ufot, said the workshop was designed to impact and transform participants to the successes they are meant to be.

    According to him, stagnation has wrecked a lot of havoc in Nigeria as many cases of suicides in recent period could be traced to stagnation in one form or the other.

    He noted that whatever the challenges, people must not allow inertia to hold them down from pursuing new initiatives.

    “Choose to see every failure as an opportunity to learn and fail forward,” Ufot said.

  • CBN to partner corporate treasurers

    By Victor Odiase

     

    The Central Bank of Nigeria (CBN) has endorsed the Association of Corporate Treasurers of Nigeria (ACTN).

    Deputy Governor, Economic Policy, Central Bank of Nigeria (CBN), Okwu Joseph Nnanna, made this known to the members of the Governing Council of ACTN during their courtesy visit to him in Abuja.

    He urged ACTN to be research-oriented and to adopt best corporate governance, noting that ACTN should partner with the apex bank in its developmental programmes.

    The Association of Corporate Treasurers of Nigeria is an association established to foster the interests of corporate treasurers in the Nigerian financial markets by providing a platform for policy advocacy, discussions on issues of mutual interest, education and standard development of the corporate treasury function.

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    Chairman, Governing Council, Association of Corporate Treasurers of Nigeria (ACTN), Zeal Akaraiwe, who led the ACTN team noted that the association could play a vital role in partnering with CBN in the area of providing CBN with feed- back on policy issues.

    He reiterated the value the ACTN could be adding to the process and quality of policies if CBN could depend on the ACTN for certain statistics they would require for more informed policies.

    The CBN Deputy Governor who agreed that CBN would partner with ACTN also requested that CBN be put on notice regarding the ACTN activities. He also stated that ACTN would be for CBN the heartbeat of the real sector in measuring market sentiments.

    As a result, the apex bank has asked the ACTN to provide CBN with information on the impulse of the real sector regarding exchange policies and other issues the members were facing in accessing foreign exchange.

    The CBN Deputy Governor told the members of ACTN governing council that CBN was trying to de-risk the real sector and expressed willingness to partner with ACTN in that regards to move the economy forward.

     

     

     

  • CBN won’t cut interest rate, says FXTM chief

    By Taofik Salako, Capital Market Editor

     

    Any hopes that the Central Bank of Nigeria (CBN) will cut interest rates in the near term have been dashed by signs of rising inflationary pressures.

    Senior Research Analyst, FXTM, Lukman Otunuga, said with the recent increase in inflation rate, the apex bank might retain existing interest rate regime over the next months.

    Inflation rate jumped to a 17-month high at 11.6 per cent in October 2019, from the 11.24 per cent in September 2019 due largely to rising food prices.

    “The CBN is unlikely to cut interest rates from 13.5 per cent this month due to the uptick in inflation and this sentiment is likely to roll over into 2020. Although one of the central bank’s objectives is to achieve price stability, an interest rate cut has the potential to stimulate consumption which accounts for roughly 80 per cent of Gross Domestic Products (GDP),” Otunuga said.

    He added that given how the Federal Reserve has signalled a pause on further rate cuts, this may also complicate the CBN’s efforts to ease monetary policy in 2020.

    The next major economic release from the Nigerian economy will be the third-quarter GDP figures scheduled for release on Monday November 25, 2019.

    Read also: CBN ban on OMO threatens N9.4tr pension investment returns

     

    “Markets are predicting growth to expand 2.0 per cent during third quarter. Should the report disappoint, the CBN could be forced to take action despite the threat of rising inflation,” Otunuga said.

    According to him, rising inflationary pressures are certainly weakening the case for the Central Bank of Nigeria to cut interest rates from 13.5 per cent anytime soon.

    He noted that should inflation accelerate more than expected, the apex bank is likely to leave interest rates unchanged throughout the first quarter of 2020.

    He however argued that although the CBN governor has stated that inflation must slow to nine per cent or less before examining a rate cut, signs of economic weakness due to low oil prices and external risks could force the central bank to take action.

    He said a combination of trade uncertainty and global growth concerns have the potential to accelerate the flight to safety, consequently boosting appetite for safe-haven assets like the Dollar at the expense of emerging markets like Nigeria.

     

  • Guest Speaker, Faculty of Social Sciences

     

     From left: Guest Speaker/Department of Economics, Faculty of Social Sciences, University of Lagos, Dr. Babatope Ogunniyi; President/Chief Executive Officer (CEO), World Stage Limited, Mr. Segun Adeleye; Chief Executive Officer, Willway Paradigm Service Limited, Miss Dolapo Agbede and Lagos Regional Coordinator, National Identity Management Commission, Kayode Adegoke, during the 2019 WorldStage Economic Summit, held in Lagos.

     

     

    Company Secretary and Director, Legal Services, 9mobile, Ore Olajide (right), receiving the award for ‘Best In-House Legal Team of the Year’ in Nigeria (Telecoms Sector) from Prof. Yinka Omoregbe, Attorney General and Commissioner for Justice, Edo State (middle), at the ESQ Nigeria Legal Awards 2019, held at Landmark Event Centre, Victoria Island, Lagos. The Chief Financial Officer, 9mobile, Mr. Phillips Oki.

     

    From left: Chief Executive Officer, AerialView Communications Africa, Oyebanjo Oloyede Ariyo; British Council Director Education, Enterprise and Skills, Adetomi Soyinka; Country Head, ECOWAS-GIABA, Tim Melaye; Founder, The School of Life and Convener of The Career Life and Money Conference, Motola Oyebanjo; LSETF Director, Strategy Partnerships and Stakeholder Management, Abosede George-Ogan; Seasoned Commercial Operations Consultant, Winston Ailemoh, at The Career Life and Money Conference 2019 organised by The School of Life, in Lagos.

     

    Police National Coach, Martha Nwokolo; Vice Chairman Darts, Chief Sam Olarewaju; Deputy Commissioner of Police, Dayo Ariyo; Ikeja Club Chairman (Darts Section), Otunba Sunday Ogunwande with Lagos State Darts Chairman, Koye Adejumo; Baale Seriki Aro (Patron) and Tunde Apalara, during Lagos State Inter-Clubs Darts compettiion at Ikeja Club, Lagos.

     

    The couple, Mr. Taofeek Raji and his wife, Baseerah (middle), with the groom’s parents, Chairman, Nigeria Union of Journalists (NUJ), Lagos State Council, Dr. Qasim Akinreti and his wife, Hajia Noimat, at the wedding of their daughter, held at ASCON, Badagry, Lagos.

     

     

    From left: Ayo Adelakun of Sales Department, Grand Oak Limited; Iyanu Aloba and Temiagin of Marketing Department during a sensitisation campaign at the trade fair.

     

     

    L-R – Dare Senbore, Partner, Aluko & Oyebode; Dr Ademola Bamgbose, International Arbitration Lawyer, Hogan Lovells, London; Angus Rankin, Construction and Engineering Disputes Partner, Hogan Lovells, London; Andrew Ohaneje, Assistant General Counsel, Nigeria LNG Limited; Nathan Searle, International Arbitration Partner, Hogan Lovells, London at the legal training session for select participants of the Nigeria Liquefied Natural Gas (NLNG).

     

     

    From left: The Manager, Women Christian Association, Wesley Cathedral, Olowogbowo, Lagos, Elder Titus Cole; a Senior Class Leader of the church, Sis. Oluremi Disu; her husband and newly installed Grand Patron of the association, High Chief Akin Disu and the newly installed Lady President of the association, Sis. Yewande Abayomi-George, at the cutting of the association’s 95th anniversary birthday cake at the Wesley Cathedral, Olowogbowo, Lagos.

     

     

     

    From left: Comrade Abiodun Bakare of Amalgamated Union of Public Corporations Civil Service Technical and Recreational Services Employees (AUPCTRE), Achike Chude of Joint Action Front (JAF), Philip Jakpor of Environmental Rights Action and Comrade Taiwo Opaleye, branch chairman, AUPCTRE Lagos Council, at a news briefing organised by Environmental Rights Action (ERA), tagged: “This is Lagos: Our Water Our Right. No to Privatisation!” held in Lagos.

     

     

    MINISTER OF AVIATION INSPECTION AKANU IBIAM INTERNATIONAL AIRPORT ENUGU
    Airport Manager, Mrs. Cecelia Nneoma Oguama (left), briefing the Minister of Aviation, Sen. Hadi Sirika, during the inspection work on developments at the Akanu Ibiam International Airport, Enugu.

     

     

    • A cross section of Colgate Dental specialists and members of the University of Ibadan Association of Dental Students (UDAS), attending to people during the Colgate Dental Screening Community Outreach at Ojoo market in Ibadan, Oyo State.
  • Agricultural Seeds Council and battle against fake seeds

    The plan of the Federal Government to make agriculture the mainstay of the country’s economy is no doubt yielding fruit. One government agency that has concluded arrangements to take the bull by the horns to reposition the agricultural value chain in the country is the National Agricultural Seeds Council (NASC), writes ONYEDI OJIABOR

     

    Fake seeds are like counterfeit drugs. They are capable of harming the plan of the Federal Government to make agriculture the mainstay of the country’s economy. All over the world, the agricultural sector is the strength of the economy, which employs a vast majority of people.

    Experts say the population of the country is growing at an alarming rate which makes it imperative to double productivity to meet the rising demands for food.

    It is also the view of experts that quality seed is one veritable tool to achieve the vision of food sufficiency in the country.

    Relevant ministries, departments and agencies of government are steadily keying into the agenda to make the country not only food sufficient, but to produce for export.

    One government agency that has concluded arrangements to take the bull by the horns to reposition the agricultural value chain in the country is the National Agricultural Seeds Council (NASC).

    The council’s mandate is to ensure circulation of adequate quality and quantity of seeds in Nigeria, across West Africa and other regions.

    That seed is central to agriculture is not in doubt, it is also not questionable the fact that the attention you give to seed determines your productivity and how far you can go.

    What may be in doubt, experts say, is the level of acceptability of improved seedlings by Nigerian farmers.

    NASC Director-General, Dr. Olusegun Ojo is, however, not leaving any stone unturned in his effort to popularise and carry out the mandate of the council.

    Ojo said as much when he spoke in Abuja about the activities of NASC and the determination of the council to take the benefits of quality seeds to the door steps of Nigerians.

    For Ojo, the value of the seed industry in the country and the value that can be attained in about 2030 is enormous.

    According to him, “assumed current value of about N150 billion for selected cereals and legumes food security crops, by 2030 the value will be well over N200 billion for these crops which include maize, rice, sorghum, cotton, cowpea, groundnut, millet and soybean”.

    On the role of seed to agricultural productivity, he said they regulate to introduce sanity into the system to prevent confusion and ensure that farmers are protected.

    He said without necessary regulation, “it implies farmers will be defrauded and eventually, we will be unable to meet our food and raw material need as a country”.

    Ojo said NASC is not capable to do the duty alone. “Our approach is that we encourage the entire community to work with us to sanitise the system. Our manpower is insufficient and as government revenue is dwindling so is our manpower and logistics. For staff security in the execution of their duties, we partner with the various law enforcement organs of government to support us. We enjoy a very cordial relationship with the Nigerian Security and Civil Defence Corps for example.”

    Increase in yield per hectare and land expansion are also said to be two factors which determine agricultural growth.

    In the country, land expansion is said to have remained the key driver of growth. Experts say yield per hectare has been low due to low use of high quality input particularly seeds. So, a simple tool that can transform agricultural productivity significantly at very minimal cost is the utilisation of good quality seeds, the council insists.

    Asked how compliant the commercial seed entrepreneurs have been to the council’s standards and whether he would say the seed sector is living up to expected standards, the NASC boss noted that they have been dynamic and “we need to commend them for their effort in the past few years, our progress in the rice and maize sector for example is partly due to the deployment of quality seeds from these commercial seed entrepreneurs. We have room also for improvement because we have not reached our destination”.

    The DG is also convinced that farmers can harvest more than double their current yield through the use of certified protected plant varieties through the introduction of Plant Variety Protection (PVP).

    On NASC partnership with various seed enterprises Ojo said partnership is their key strategy for success. “That is why we continue to partner various organisations whether government, private, NGO, CBO, CSO, media, financial institutions, security agencies name it. We are open to work and collaborate with all to usher in quality seeds in Nigeria.”

    On the membership of international bodies that deal with seeds and what Nigerian stands to benefit, he said: “We are strategically making effort to ensure that Nigeria is on the global seed map and we benefit from the multibillion dollar seed economy. This we can do in partnership with the various international seed bodies.

    “We are currently making effort to be a strong nation in the World Seed Partnership and that is why we are seriously doing all to become member of bodies such as the International Seed Testing Association (ISTA), the International Union for the Protection of New Varieties of Plant (UPOV), the Seed Scheme of the Organisation of Economic Cooperation and Development (OECD), the International Seed Federation (ISF), the Africa Seed Trade Association (AFSTA), Africa Seeds.”

    He added: “The world is a global economy and we cannot operate in isolation and so our membership with these organisations will boost seed trade and also help curb dumping of substandard quality seeds in Nigeria.”

    The NASC DG described the country’s agriculture future with seeds as “very bright” because “seeds with other inputs and good agricultural practices will take us to the right place”.

    Perhaps one strategic initiative of NASC may be the disclosure that it has concluded arrangements to commence the digital coding and labeling of certified seeds (SeedCodex) for farming.

    SeedCodex, it said, will commence effective from the early farming season of year 2020.

    Findings showed that the SeedCodex initiative, which is an electronic verification and authentication system introduced to enhance efficiency of the council’s seed certification process, was launched about two months ago.

    The DG said it involves using digital codes hidden under a scratchable veneer, which when sent to appropriate telephone line, promptly give feedback on the authenticity or otherwise of the seed sample in any receptacle, be it a bag, a can or any other form of container.

    Read Also: Adopting smarter seeds for food security

     

    Ojo believes that the introduction of this technology will help to bring transparency into seed supply chain and expose those doing sharp practices as each set of numbers is peculiar to specific containers.

    He added that the planned coded labeling of seed containers was part of the council’s ongoing quality seed assurance initiatives being undertaken to ensure that dealers in sub-standard seeds are denied the opportunity of benefitting from dubious practices, including adulteration, in the seeds market and ensuring that farmers get the best seeds for farming.

    For the SeedCodex initiative, NASC boss said they have trained seed certification officers as well as inaugurated seed committees across the states and oriented the Agricultural Development Programme (ADP) personnel to ensure that sub-standard seeds are eliminated in the seed industry.

    The seed expert noted that through the collaboration of relevant agencies such as the NSCDC, the council would ensure that any seed container without the codex label would be impounded and owners handed to the law enforcement agencies for prosecution.

    According to him, “we are committed as a Council statutorily mandated to regulate the seed industry to ensuring that the peddlers or fake seed companies do not have a place in our seed market. The Seed Codex initiative is one of several measures and innovative strategies we are adopting to rid the Nigerian seed market of adulterated seeds.

    “This is important to us because we appreciate that seed quality is crucial to having quality crops from our farmers for feeding, processing for local and global markets.”

    The NASC boss did not end the briefing without talking about the amended Seed Act and its effect on the mandate of the council.

    He said: “The process of amendment started about 12 years ago. The bill was amended by the 6th and 7th National Assembly, but was not assented due to the dynamic nature of the industry and the need to include other key provisions in the thinking of the government of the period.

    “However, we thank God that the 8th Assembly seeing the importance of the Seed Act passed the bill again into law and this time it received the assent of Mr. President.”

     

    The world is a global economy and we cannot operate in isolation and so our membership with these organisations will boost seed trade and help curb dumping of substandard quality seeds in Nigeria

  • Imo private schools: Rich proprietors, poor teachers

    Since Nigeria’s return to democratic rule in 1999, there has been an upsurge in the number of private schools across the country, particularly in Imo State. While the proprietors smile to the banks and live large as a result of high fees they charge, their teachers, mainly university graduates, virtually live in penury, writes DAMIAN DURUIHEOMA

     

    Olivia wakes up every 4:30 in the morning from her one-room apartment in World Bank, Owerri Imo State worrying about what the day may hold for her. She dashes out to the verandah which is converted to a kitchen and begins to prepare meal for her two children.

    Before 6:30 a.m., she heads for her duty post  in one of the private schools at New Owerri area of the capital city. She later revealed to The Nation that she had been doing this for six years so as not to be late for school.

    According to her, if she gets late by two minutes to school, N500  will be deducted from her meagre salary.

    Thirty-two-year-old Olivia is facing hard times. She has been on the job for two years and her monthly salary of N15, 000 is barely enough.

    A graduate of the University of Nigeria Nsukka, Olivia revealed that her salary has just been increased to N20,000 per month; having secured a new job in a new school.

    Her school is one of the big private schools in New Owerri. Pupils pay between N21, 000 and N26, 000 as fees per term, depending on the class or level. This considerable low fee, coupled with the failure of the state government to establish new schools in spite of the increasing population of the area, it was gathered, increased the school’s population, which stands between 350 and 400 in its nursery and primary section alone. This, she said, is the same scenario with the school where she left for her current place of work.

    With just 13 teachers in the school, it was gathered that the amount collected from pupils per term by the school’s proprietor like most other private schools in the state does not reflect in the salaries paid to the teachers, who work 10 hours a day between 7:00 a.m. and 5:00 p.m. The income, according to The Nation‘s findings, reflects more on the landed properties and exotic cars acquired by the proprietors.

    “Most of us teaching in private schools are passing through hard times. Getting a better job becomes a major challenge.

    “So, instead of staying idle, it’s better I remain here to earn a living, despite the meagre pay I get as salary,” she told The Nation.

    And to show how serious the proprietors can be about it, findings showed that any teacher who comes two minutes late to school will have about N200 or N500  deducted from his or her salary no matter the reason.

    She said: “Apart from our proprietor’s daughter, who just finished secondary school, all the teachers in this school are graduates. Yet, we are not paid up to the country’s minimum wage. We found ourselves here because of the high level of unemployment in the state.

    “I graduated about 10 years ago and after searching for job without success, I was employed in a school where I was paid N12, 000 a month. When the opportunity came, I decided to grab it hoping to find a better job. There is no time for one to search for fresh job except through online which is not always genuine.

    “So, after getting married, I hoped to quit the job. But things started being rough for me after the birth of my second baby.”

    Findings by The Nation  showed that the major challenge teachers in private schools face is the thinking of the proprietors that labour is readily available. It was also observed that the proprietors are of the view that they are only doing the teachers a favour by employing them to teach in their schools.

    “That is why when one talks about increment and better working condition, one gets sacked,” Olivia said.

    She described the meagre  salaries paid to teachers in private schools as unfair. According to her, they work for 10 hours every day. “And for you not to go to work late, you have to wake up by 4:30 a.m. or 5:00 a.m. every day and go home around 5:30 p.m. or 6:00 p.m. depending on where you live.

    “We help the proprietors make huge sums of money because of quality service the graduate teachers bring to bear in these schools. But rather than encourage the teachers with good salary, they are always on the lookout to spend millions of naira on lands where they will extend their schools to and drive big cars,” she said.

    To make ends meet, findings showed that teachers such as Olivia resort to ‘begging’. They do it stylishly.

    For instance, during school runs in one of the schools in Ikenegbu Layout, the teachers would always beg some parents to “find us something for lunch” or “give your son something to bring for me tomorrow”.  At some other time, it was observed that some of the teachers would tell the parents about the progress their ward is making in their class and eventually use the opportunity to beg for some assistance. And the most popular one is the teacher telling her pupil on Thursdays to inform his or her parent to “do weekend for me on Friday”.

    Two other teachers, Chidera and Chioma, who work with different schools in the city, shared almost similar experience with Olivia.

    Chidera said since she has nothing else doing after her graduation, she decided to take up teaching, hoping to quit immediately she embarks on the National Youth Service Corps (NYSC).

    She said with the little experience she has had within a short time, the job offered no hope for anyone who wants to rise through the ranks except those who plan to run their own schools.

    The HND holder, who earns N12, 000, said she was not bordered about the “meagre salary” because “my stay in this school is just for a while.

    “I observed that the situation is the same everywhere in this city despite the huge amount of money the proprietors make. So, I have decided that after my youth service, I will not teach in any private school. It’s better to engage in small business than to teach in private school”.

    A parent, Timothy Adiele, whose child is in one of the private schools in Owerri, told The Nation that it is true that salaries of many Nigerians working in private companies are nothing to write home about, but what is happening in the private schools needs to be given a critical look before it is too late.

    Adiele said: “This is an industry that is supposed to be complementing government’s efforts in job creation. But, the proprietors have taken the advantage of the level of unemployment rate in the country to dehumanise their fellow humankind.”

    A Senior Lecturer in the Department of Education Foundation and Administration, Mrs. Ngozi Izuagba, said it was disgusting for private schools to treat their teachers with such disdain.

    Dr. Izuagba noted that education is Imo’s industry, but regretted that the height the state had attained in education development was yet to trickle down to teachers.

    “In the past 15 years, the state has been coming first in everything examination– be it senior school certificate examinations, university entrance examinations or even university enrolment. Apart from few states, Imo ranks highest as a state with high number of private schools, no thanks to poor quality of teaching in state-owned schools.

    “However, with the growing number of private schools in the state, one would think that the industry is assisting the government in offering quality jobs to teachers. But, the true situation is that it has been an exploitative situation by proprietors as their teachers go hungry while the proprietors live in affluence.

    Read Also: Lagos approves establishment of 173 private schools

     

    “The private schools have  made huge contributions in the provision of quality education in the state. But thousands of teachers in their employ are hardly paid anything more than N20,000 per month,”  she said.

    Another educational management expert, Mrs. Ngozi Abiahu blamed government for not properly monitoring the operations of the private schools.

    She said: “What private schools are doing in Imo State is very wrong. They have killed education system. How can you employ a graduate teacher and you pay her N15, 000 or N20,000? What kind of output are you expecting from her?

    “In the course of wanting to pay so little to the teacher, the proprietors employ unqualified teachers,” she said.

    Chairman of the National Association of Proprietors of Private Schools (NAPPS), Pastor Chris Ineh admitted that most of the private schools in the state do not offer quality jobs because of a number of factors.

    He insisted that the private schools were providing what he called stop gap employment for unemployed graduates despite the poor salary package.

    “‘It’s true that most private schools don’t offer quality jobs, the reason is because of poor enrollment of student population.

    “A teacher should not expect to be paid more than N15, 000 when the number of pupils in her class is 15 or 20. What most of them do is they multiply it by N10,000 or N15,000 which the pupils pay as school fees and want the proprietor to increase her stipend. She forgets that the proprietors will buy teaching materials, maintain the school and pay tax.

    “So, the issue of private school proprietors taking more interest in acquiring landed properties and driving expensive cars and traveling abroad is out of the question,” he said.

    Ineh maintained that private schools were playing complementary roles in the provision of quality education and employment.

    He appealed to the state government to assist private schools with grants to assist teachers.

    “We’re helping government in the provision of jobs and we are saying that the government should assist us with grants. That was the fulcrum of our discussion in Markurdi, Benue State last week. We want government to support some of the qualified teachers through the state Universal Basic Education (UBE) whereby free books can be given to them.”