The Nation Newspaper

Category: Business

  • ‘African banks lead sector’s innovation’

    The Group Managing Director, First City Monument Bank (FCMB) Plc, Ladi Balogun, has said innovation in mobile payments, financial inclusion, and regulatory intervention is making sub-Saharan African banks the future of sustainable banking in the continent.

    In a presentation made in London, Balogun said: “In a region that is often a slow follower, African banks are increasingly becoming first movers.”

    He cited M-PESA, the Kenyan banking system and the role its regulator has played in promoting mobile payments and financial inclusion which has resulted in the highest mobile payment penetration numbers in the world.

    Balogun also cited a leading South African bank recently conferred with a global award for innovation, with solutions such as social (network) banking, cardless Automated Teller Machine (ATM) withdrawals, unique branch formats, aimed at increasing accessibility and convenience.

    In the case of Nigeria, Balogun said regulatory innovations, led to one of the boldest and most efficient crisis resolution efforts to be recorded by any bank regulator in recent times. He noted: “Within three years the Nigerian banking industry has gone from non-performing loan ratio’s of over 25 per cent to less than five per cent, and aggregate industry operating profit likely to cross $3 billion in 2013.”

     

     

     

  • Judiciary workers give govt 21 days strike notice

    The Judiciary Staff Union of Nigeria (JUSUN) has given a 21-day strike notice to the Federal Government over non-implementation of the Consolidated Salary Structure for Judiciary Workers (CONJUSS).

    The notice is contained in a communiqué by Mr Marwan Mustapha, the union’s National President and Mr Issah Adetola, the General Secretary in Abuja.

    They said the decision was reached at the end of the union’s National Executive Committee (NEC) in Minna.

    They said unless steps were taken to implement the CONJUSS, the union had no choice but to shut the courts.

    They said failure to comply with the notice could lead to an industrial crisis in the federal courts.

    It condemned the actions government agencies and stakeholders, saying that they frustrate the implementation of the scheme.

    “National officers will be overseeing the full compliance of JUSUN members during the strike, until the government fully complies with the salary structure,“ the communique said.

    NEC urged states that are yet to comply with the payment of CONJUSS to do so to avoid disruption of judicial services in their states.

    “This is because JUSUN will pursue the implementation of the salary structure in all the states of the federation,“ it said.

    The NEC commended Justice Suleiman Dikko, the new Chief of Nasarawa State, for resolving the lingering face-off between the branch executive and the management.

    NEC reaffirmed the position of the union’s amended constitution on the tenure of the national and state executive committee of JUSUN for four years, adding that it instructed its branches to comply.

    Mustapha, in an earlier statement, warned that the union should not be held responsible for any breach of industrial harmony in the sector in 2013.

    He had lamented the fact that government was taking the union’s peaceful and sensitive nature for weakness.

    He said that several agreements signed with the union had been jettisoned by government.

    He said: “We want to congratulate Nigerians for seeing us through 2012 in spite of several challenges faced.

    It said it believed that the year would be better. It appealed to the government to step up on its promises to Nigerians by ensuring the protection of their lives and properties.

    “Another burning issue is the non-implementation of the CONJUSS to federal courts which has been foot-dragging for a while.

    ‘’We are afraid that we cannot guarantee industrial peace in all the courts across the country in 2013, if nothing is done to solve this issue,”he added.

  • ‘Weak infrastructure, ICT application, others retard growth’

    ‘Weak infrastructure, ICT application, others retard growth’

    Operators in the insurance industry have identified weak infrastructure and low application of information communication technology (ICT) as some of the challenges that are impeding the growth in the industry.

    They argue that unless these challenges are tackled, efforts to deepen insurance penetration and increase its contributions to the nation’s gross domestic product (GDP) will never make the desired impact.

    The Group Managing Director, Mutual Benefits Assurance Plc, Mr Akin Ogunbiyi, also another problem is the dearth of affordable insurance products for clients.

    “If we really want to increase insurance penetration in this country, we have to look at the products and services that the common man can benefit from, to meet his needs, creating value for them and making it affordable,” he said.

    Assistant General Manager, Corporate Communication and Brand, Sovereign Trust Insurance Plc, Segun Bankole, said the untapped potentials in the Life segment of the insurance industry is very large and a lot of Nigerians are beginning to see the positive benefits of taking up the policy.

    He said Sovereign Trust is achieving a record 25 per cent increase in their market penetration every year. He said the SWIS – F POLICY, which his company offers Nigerians, has a lot of benefits. If during the period of insurance, the insured sustains bodily injury solely and independently of any other cause by accidental, violent, external and visible means resulting in death or disablement, the Company pays compensation or in the case of death, to his legal representatives.

     

     

     

     

  • Over 2,000 applicants jostle for judicial jobs

    NO fewer than 2,000 job seekers have besieged the Federal Judicial Service Commission in Abuja to get its application forms. The deadline for collection and submission is February 28.

    The applicants were seen in long queues last Thursday waiting to get the forms.

    According to some of them, this has been the situation in the last two weeks and it might continue till the closing date.

    Some of the applicants decried the poor process of collection of forms, saying there was only one point for it.

    A Computer Science graduate of The Polytechnic, Ibadan, Olaoye Ademola, lamented the stress of queuing for a job one might not even get because of ethnicity.

    ‘’The selection for employment is supposed to be stress-free because some of the people one sees on the queue can’t even raise enough money to feed. God forbid bad thing, should any one collapse and die here, that will just be the end of the story, he said.

    Another applicant, Sekinat Kehinde, a graduate of Mathematics /Accounting, said she had been seeking employment in the past five years wwithout successs. She hoped teh government would bail out the unemployed through the creation of more jobs.

    Kehinde, who could not get a form, said she could not struggle for it as others were doing.

    An official of the Commission, who did not want his name in print, said it would create more outlets for the forms.

  • Kebbi promotes 4,560 teachers

    The Kebbi Universal Basic Education Board has promoted 4,560 primary school teachers.

    The Secretary of the board, Alhaji Sodangi Bello, told the News Agency of Nigeria (NAN) in Birnin Kebbi that the promotions were meant for deserving teachers to boost their performance.

    He said the promotion was delayed because the board was waiting for the final report of the recent verification of school teachers.

    Bello said majority of the teachers had started enjoying the payment following their promotions.

    He said the board would enhance teachers’ welfare to make the teaching more attractive.

    Bello said the board had, in the last two years, sponsored 1,200 teachers for further training to enable them to acquire the National Certificate of Education (NCE) and degree in higher institutions.

    He said the board and stakeholders in education, also organised capacity building training aimed at enhancing performance and productivity of teachers and students. He warned teachers against absenteeism, lateness, truancy and unlawful practices.

    He said: “We (Board) will not spare erring teachers as effective methods of supervision and inspection have been put in place to check such offences.”

    He commended the state and local governments for prompt release of counterpart funding for salaries and other entitlements of teachers.

  • AfDB plans $1.5b projects for Niger Delta, others

    AfDB plans $1.5b projects for Niger Delta, others

    The African Development Bank (AfDB) is to spend $1.5 billion on projects in the Niger Delta region, Abuja and some states, the bank’s representative in Nigeria, Dr. Ousmane Dore, has said.

    He told The Nation that the projects include the construction of East-West highway in the Niger Delta region, financing of Abuja urban transportation programmes and agriculture.

    He said: “We are developing new operations for Nigeria to enable us to finance road projects in the Niger Delta region, Abuja urban transportation programmes, and agricultural initiatives.

    “These projects are contained in the new developmental strategy being mapped out for Nigeria. They are projects the bank is preparing for the country.

    “We will go to the board of the bank for approval soon. Immediately the board approves it, implementation of the projects would start as part of our ongoing concern to improve infrastructure in the country.”

    He said the projects would have a gestation period of four years (2013-2016), adding that they are short term.

    He said the decision to evolve a new financing strategy for the country was borne out of the need to encourage growth of some sensitive areas.

    He said the projects are new and different from the ones earlier approved and executed by the bank. The projects, he said, are not only developmental, but underscore the bank’s plans and programmes for member states.

    Dore said the bank had earlier approved $2.2 billion for infrastructural projects in Nigeria, adding that the money was meant to finance privately and publicly-driven projects in the country.

    He said $1.3 billion was earmarked for private projects, while the public projects got $900 million.

    “Altogether, we are spending $2.2 billion on projects in Nigeria. We have started implementing some projects, while others have not been executed.”

     

  • PenCom, PenOp set to tackle unclaimed retirement benefits

    PenCom, PenOp set to tackle unclaimed retirement benefits

    THE National Pension Commission (PenCom) and the Pension Fund Operators (PenOp) are to address the problems of unclaimed retirement benefits of retirees.

    PenOp’s President, Dave Udeanu, said some retirees have refused to collect their benefits from their Pension Fund Administrators (PFAs), adding that the development has made operators to intensify efforts at locating them and their families without success.

    He said operators would continue to educate the public, adding that the challenge cannot be tackled overnight.

    Worried by this development, PenCom has directed PFAs to advertise the names of the affected retireees in the national dailies. Dauda Ahmed of Corporate Strategy Unit, PenCom, who make this known, said the PFAs have also been directed to visit the last place of employment or address of the retirees to obtain any available contact information or those of their next-of kin in an effort to trace them and ensure that outstanding benefits are processed for payment.

    He said: “In effect, we wish to confirm that there are no “unclaimed pensions” with PFAs in the real sense of it, but possible issues of temporary delay in processing the withdrawal of pensions/terminal benefits due mainly to loss of contact.

    “The balance in the Retirement Savings Account (RSA) of a retiree comprises the proceeds of his retirement bond, his contributions from July, 2004 to the month of retirement and the investment income. At the point of retirement, the retiree is expected to submit necessary documents to, and discuss with the PFA on his preferred mode of withdrawal of his pensions. The retiree has the option of either Programmed Withdrawal (PW) which provides pension over the expected lifespan through the PFA or purchase of annuity from an Insurance Company which ensures payment of pension for life.

    According to him, these payments can only be made after the Commission had granted approval of the agreement entered into by the retiree with his Pension Fund Administrator (PFA) regarding the mode of withdrawal of his benefit.

    “Nevertheless, there could be delays by retirees or next of kin in the case of death benefits in accessing retirement or terminal benefits, but not “unclaimed pensions,” he said, adding that such delays can be attributed mainly to the inability of the PFA to contact the retiree who may have retired to his village without leaving an active contact address with the PFA.

    He urged the public to always liaise with pension operators to sort out issues, adding that the new pension scheme is poised to provide comfortable life style for retirees.

    Meanwhile, operators in the pension industry have said they would leverage on the integration of businesses in the informal sector to increase the number of contributors from 5.2 million currently to about 20 million by 2017.

    Udeanu, who disclosed this at a media parley in Lagos, said several additional incentives are being proposed to make the pension scheme more beneficial to persons working in the informal sector, who accounts for over 60 per cent of the working population in the country.

    He noted that the PenCom has released an exposure draft of the framework for the participation of persons operating in the informal sector, stressing that the draft is currently being finalised.

    He said the framework once released would ensure the participation of persons working in the informal sector and effectively increase the coverage of the scheme.

    Udeanu said PenCom will also before the end of the first quarter of this year, incorporate a multi-fund structure for Retirement Saving Accounts (RSA) funds, into the amended investment guidelines.

    He said: “The decision to introduce the multi-fund structure in the first quarter 2013, is to allow enough time for public education and sensitisation by the commission and also allow operators enough time to be ready to implement the structure.

    “The multi-fund would be primarily differentiated by their overall exposure to variable income instruments and a contributor’s choice of funds may be limited based on the age of the contributor. Also the multi-fund structure would likely also allow for the introduction of a non – interest or ethical fund.”

    Managing Director ARM Pension Managers Limited, Sadiq Mohammed, on pension contributory recovery agents, said the agents have visited about 8,584 firms out of 15,760 identified as non-compliant by not remitting their workers’ contributory retirement funds to the appropriate quarters, adding that over N2.5 billion is expected to be recovered from the identified defaulters.

    He said demand notices and accounts details of pension custodians for remitting deducted pensions have been sent to the firms visited.

  • PENGASSAN warns against ‘crude’ oil refining

    PENGASSAN warns against ‘crude’ oil refining

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has warned that encouraging or legalising unlicensed local refining of crude oil through ‘unconventional’ methods would not be beneficial to the country.

    PENGASSANPresident, Babatunde Ogun, said the application of crude methods to refine petroleum will not only lead to economic loss but also lead to the degradation of the environment, creating risk to communal health, safety and environment.

    “Unconventional refining of crude oil can only produce fuel (petrol). It cannot produce kerosene, diesel or black oil, for the production of other ointments. It also leads to environmental degradation, which could cause health disasters, explosions and vehicle break down,’’Ogun warned.

    He said encouraging the operations of illegal refineries by attempting to regulate their activities is an ill-wind that blows no one any good.

    Ogun said the Federal Government gave approval in principle to indigenous firms to set up refineries in the country, lamenting that so many of them failed to use the licence, which the Department for Petroleum Resources (DPR) gave them.

    He, however, urged the Federal Government to support the establishment of small refineries, as it is done in other oil producing countries.

    While commending the courage of the government in clamping down on the operators of illegal refineries in the country, he called on the government to provide adequate powr supply to run the engine of the national economy.

     

  • Pensioners’ nationwide protest begins Feb 25

    The Nigeria Union of Pensioners (NUP) has announced plans for nationwide protests scheduled to begin on February 25.

    The National President of NUP, Alhaji Ali Abatcha, told reports that a meeting by the Minister of Labour and Productivity, Emeka Wogu, ended in a deadlock.

    He said the meeting was attended by representatives of the Head of Service of the Federation, the Ministry of Justice and others.

    Abatcha said the union is seeking the release of the one per cent check-off dues which members voluntarily contributed but seized by the Pension Reform Task Team.

    He said: “The meeting ended in a deadlock because none of our demands was met.We are also demanding the 53 per cent increment, which civil servants have been enjoying for the past three years, among others.

    “The Minister told us to come back by February 13 so that the Salaries, Income and Wages Commission can explain why the circular is yet to be released. For the check-off dues, the Ministry of Justice said we don’t have the right to levy our members but we told them it is not levy but voluntary contribution.

    “We will not accept a situation where genuine pensioners suffer for their entitlements, which aren’t paid, while the chairman of the task team claims to be saving money for government.”

  • Why some MFBs could not recapitalise

    Why some MFBs could not recapitalise

    MANY microfinance banks (MfBs) could not recapitalise because of the non-implementation of the 2005 MfBs’ framework of the Central Bank of Nigeria (CBN) by the government, the Managing Director, Support Microfinance Bank, Sunny Akahmiorkhor, has said.

    He said most of the microfinance banks that closed shop would have survived while those existing as unit MfBs could have grown to state and national MfBs, if the Federal Government and Development Finance Institutions (DFIs) had rescued them.

    He said some of the MfBs, which failed to meet the December 31, 2012 deadline set by the apex bank, have relapsed into unit status, which requires only N20 million as against state MfBs and national MfBs, which require N100 million and N2 billion.

    He regretted that the MfB framework set by the CBN that required state and local governments to contribute one per cent and five per cent of their annual budget respectively to MfBs operations is not being implemented. The contributions are supposed to be part of their equity holdings in such MfBs.

    He said the governments’ non-commitment to the operations of MfBs has made it difficult for leading DFIs, such as the International Finance Corporation (IFC), International Development Bank (IDB), and Department for International Development (DFID) to commit funds to MfBs. He said DFIs are expected to give grants to MfBs to fund their operations.

    Akahmiorkhor, said the bank should also extend other cost-cutting measures, including reducing commission on turnover (CoT) and other banking costs that burden the subsector’s operations.