Category: Business

  • ‘Fed Govt owes pensioners N500b’

    The National President of Nigeria Union of Pensioners (NUP), Mallam Ali Abatcha, has said the Federal Government is owing pensioners unpaid entitlements totalling over N500 billion.

    He said this in Ibadan during the celebration of Pensioners Day and the foundation laying ceremony of Oyo State Pensioners House.

    Abatcha, who was represented by Mr Wale Jolaoye, noted that the joy of pensioners had been truncated by series of disappointments, frustrations and deprivation.

    He stressed that many pension arrears remained unpaid, while thousands of pensioners were not receiving any benefits from the government.

    He noted that the pension and gratuity of retired workers were at times not paid in full, while there were some disparities in the harmonised pension scheme.

    “Besides, names of pensioners are sometimes removed from the payroll by pension officials,’’ he added.

    Abatcha rejected claims by Mr Abdulrasheed Maina, the Chairman, the Pension Reform Task Team (PRTT), that over N181 billion pension funds had been saved.

    He called for the immediate implementation of the report of the Senate Joint Committee on Pension Administration, which indicted the PRTT officials for fraud and called for their prosecution.

    Abatcha challenged the PRTT to make public the report of its 2010/2011 biometric exercise and solicited the immediate resumption of the inconclusive biometric verification of 2010/2011.

     

     

     

  • Operators fault ship policy

    Operators in the maritime industry have faulted the Federal Government’s policy on ship repairs.

    Speaking with The Nation in Lagos, the operators said the government has not offered special incentives for the sector to promote and enhance efficiency in shipping-related services and make the country a logistics hub.

    One of the operators Mr Funsho Badmus said ship building is capital intensive and urged the Federal Government to make special provisions for capacity building.

    He said local ship owners face difficulties in raising funds to facilitate improved business prospects.

    He said the facilities at the existing shipyards were highly inadequate when compared to what is required at international level.

    He said ship repairs is highly competitive and should be supported by national policies and subsidies, adding that without government’s support, the growth of the industry would be difficult.

    He expressed concern over the inability of government to support coastal trade with incentives while other countries do, adding that for the sector to grow, there should be incentives such as lower taxes to offset the costs.

     

  • Sacked workers protest non-payment of entitlements

    About 50 factory workers who were retrenched by the management of International Plastics Nigeria Ltd (INTERPLAST) at Ijora CauseWay, Lagos, have embarked on a peaceful protest over unpaid salaries and entitlements.

    The workers said they were sacked in November and that up till now, the company had not paid their entitlements.

    One of the workers, Mr Ahmed Shehu said he was only paid N677,000 after serving the company more than 17 years.

    Shehu said the company had yet to pay him other entitlements.

    “How can someone be paid N677,000 after all these years of service. I feel being used and dumped after giving all I have to the company,” he said.

    He confirmed that 50 workers of the company were laid off.

    The Chairman of the company, Mr Harish Shinani, while addressing the workers, promised that they would be paid their entitlements tomorow.

    “We are short of funds now, but I assure you that by this coming Tuesday, you would get everything due to you,”  he said.

    Shinani gave the protesters N1,000 each to use as transport allowance when coming next week.

     

  • Health Bill: Tuc seeks public hearing

    The Trade Union Congress of Nigeria (TUC) rose from its National Executive Council (NEC) meeting at the weekend in Lagos, seeking public hearing for the National Health Insurance Bill.

    The meeting chaired by the Congress President, Comrade Peter Esele, frowned at the National Health Bill, which it claimed, does not accommodate the interest of many Nigerians. It, therefore, demanded an invitation to a Public Hearing for TUC’s input in “making the Bill a better gift to Nigerians.”

    In a six-point communique signed by Esele and Acting Secretary-General, Musa Lawal, the NEC also frowned at the growing rate of kidnapping, bombings and robberies on banks, general workers and citizens and called on the government to intensify its effort in arresting the menace.

    On infrastructure development, TUC condemned the continued deterioration of roads despite the huge funds being expended them, and called on the government to improve on them.

    On power, the meeting commended the Federal Government on the negotiation with the Power Holding Company of Nigeria (PHCN). The body implores the Federal Government to implement fully the terms of the Agreement and deliver to the citizenry the promise of 24-hour uninterrupted electricity power supply to the nation.

    The association endorsed the industrial action in Plateau in the struggle for workers emancipation due to the non-compliance with minimum wage Act.

    But it condemned “the religious colouration being introduced by some religious bodies in the investigation being carried out by the military in the bombing of the military barracks in jaji by suspected fundamentalists.

    “The military should be allowed to carry out both its internal and external statutory investigations so that the issues can be properly addressed in the collective interest of Nigerians,” he asid.

    The NEC okayed the retirement of its Secretary-General, Comrade John Kolawole. He has been replaced by Mr Lawal, the Deputy Secretary General.

     

  • MDGs: World Bank to assist Nigeria, others

    MDGs: World Bank to assist Nigeria, others

    The World Bank has promised to assist Nigeria and other developing countries to achieve the Millenium Development Goals(MDGs) by 2015.

    Speaking during the Fourth Organisation for Economic and Development World Meeting in New Delhi, India, the bank’s Vice President, Poverty Reduction and Economic Management Mr Octaviano Canuto said the bank was on track to achieve MDGs in three years to foster growth globally.

    The theme of the fourm is: Beyond 2015: The future of development goals.

    Canuto said the aim of the forum was to reduce poverty to the barest minimum in countries, arguing that poverty was ravaging many nations.

    He said: For the first time since poverty trends began to be monitored, poverty and extreme poverty rates have fallen in every developing region, including sub-Saharan Africa, where rates are highest. Globally, extreme poverty is down to 22 per cent, from 52 per cent 30 years ago. Despite a 35 per cent population increase, fewer people live in extreme poverty today than 30 years ago. MDGs One, the global poverty reduction target, was met in 2010, five years ahead of the 2015 deadline.

    Poverty surveys indicate that by 2010, the global poverty rate was less than half of its 1990 level.

    “With regard to gender equality, we have made great strides in women’s endowments, capabilities, and rights, particularly on health and education. Our progress is commendable, and the first set of MDGs has, undoubtedly, served as an important catalyst for the development community to focus support on poverty reduction and improvements in human development. The energy they generated around development efforts attracted attention from governments and civil society alike, which in turn translated into greater resource flows.”

    Unfortunately, not everyone has shared in this prosperity. In Sub-Saharan Africa, only 61% of the poverty target was reached, and in fragile and conflict-affected states, only 53%. In fact, few fragile and conflict-affected states have met even a single target. Women’s economic opportunities and rights are still lagging: 44 countries still restrict the working hours of women relative to men, and 71 limit the industries in which women can work.

    In at least 47 countries, women are restricted in their ability to get a job, sign a contract, register a business, open a bank account, be the head of the household, or choose where to live. So while we’ve made headway, it is simply not enough to make progress in most countries but not in fragile states, or to help millions escape poverty but fail to reach the most marginalized, or move towards gender equality in only some areas. We need to step up our efforts in this final stretch to the 2015 deadline.”

    He said the bank is learning from the past be designing an effective post-2015 MDGs framework, ading that efforts are being made to reflect on

    how best to tackle our world’s challenges as its appraoching 2015.

    “Going forward, this is our chance to design a post-2015 framework that builds on our successes, draws lessons from past shortcomings, addresses the gaps in the current MDGs, and most importantly, aims higher across the board.

    For the new goals to act as a catalytic force for transformation in developing countries and empowerment of the poor, they must be truly universal, indivisible, complementary, and inclusive.

    With over one billion people still living in extreme poverty, and poverty reduction significantly behind target for 2015 in many countries, particularly in Sub-Saharan Africa and in fragile and conflict-affected states, accelerating progress towards the effective eradication of poverty must remain a primary goal for the international community. It is time to focus resources on those who need them the most and the hardest to reach groups. True progress goes beyond growth to include equity – in fact, the absence of equity considerations in the current MDGs has been widely criticized – because inequalities may not only hinder our steps forward but also erode what we have already accomplished. Setting ambitious objectives for ourselves in terms of both social inclusion and economic security will ensure that no one is left out this time around.” he added.

  • ‘Why insurance firms do not settle claims promptly’

    The Commissioner, National Insurance Commission, (NAICOM) Mr Fola Daniel, has said one of the reasons insurance firms are unable to settle claims promptly is the delay or non-payment of insurance premium by the insured.

    He stated this at a sensitisation workshop on the implementation of the No-Premium-No-Cover rule as contained in the Insurance Act 2003 organised for Insurance Desk officers of Ministries, Departments and Agencies of Federal Government in Abuja.

    He said: “Most insurance companies make huge provisions for outstanding premiums in their books annually, which invariably affects their bottom-line and thus, their ability to settle claims as and at when due to the insured, make profit, pay dividend to shareholders and attract investments to enable growth”.

    He noted that the situation is unhealthy and dangerous to the insurance industry and unless it is halted, it is capable of driving the industry into extinction.

    He added: “It is regrettable that government at all levels is the major culprit in this regard. We have noticed that budgetary provisions for insurance of government assets and properties are either inadequate or in most cases not made at all.

    “Besides, where the provisions are made, payments of premium to insurance companies are either delayed for months or the funds redeployed to meet other needs by ministries, departments and agencies of government which is in clear breach of Section 50 (1) of the Insurance Act 2003.”

    The workshop was meant to appraise the MDAs on the modalities for the implementation and enforcement of the rule in order to avoid gaps in the insurance covers of government assets.

     

  • CVFF beneficiaries to get $25m each

    Beneficiaries of the Cabotage Vessel Financing Fund (CVFF) will get $25 million each, the Nigerian Maritime Administration and Safety Agency (NIMASA) has said.

    The agency pegged the amount to save the fund from extinction. Its decision, it was learnt, was informed by how the Ship Acquisition and Ship Building Fund (SASBF) of the defunct National Maritime Authority (NMA) was killed.

    A senior official of NIMASA, who craved anonymity, told The Nation that the experience of its management in the disbursement of the SASB fund, showed that while some genuine shipping operators borrowed the money and paid back on time, others have yet to pay back the principal and accumulated interests.

    He said many of those who benefited from the SASB fund diverted the money.

    NIMASA, the official said, is taking precautions to safeguard the CVF fund.

    Findings revealed that the management of the agency has issued the criteria for participation in the CVFF, as it affects ship owners.

    According to the criteria, each applicant must own at least one classed vessel with P & I coverage; have a structured shipping company, which is verifiable and registered with NIMASA; must provide the company and staff profile; the vessel must be Nigerian-owned and must have five years experience.

    The requirements listed by NIMASA for ship agents wishing to participate in the CVFF are:

    •Proof of having husbanded at least 10 vessels (both local and international) within the last three years;

    • Must have a fully established and veritable office; and

    • Must provide the company and staff profile.

    NIMASA demanded that applications should show the type of vessel to be purchased/chartered or the guarantee required, and the amount being applied for not exceeding $25 million.

    Applicants were given a two-week ultimatum, which will expire on June 5.

     

  • Over 8,000 bags of rice smuggled into Nigeria daily, survey shows

    No fewer than 8,000 bags of rice worth over N56 million are smuggled into the country daily, it was learnt, over the weekend. They are smuggled through Ere River in Ado–Odo/Ota in Ogun State.

    The river, which links the country with Cotonou to Owode-Apa and Ado-Odo/Ota Local Government Area of Ogun State, also links Gbaji and Badagry Lagoon up to the Atlantic Ocean.

    When The Nation visited the area last week, locally made boats carrying more than 1,000 bags of rice each, were being used to ferry the commodity into the country.

    Ere River is a rice smuggling point, yet to be discovered by Customs and other security officials posted to the area.

    The boats were seen offloading rice to vehicles that would carry them to places, such as Agbara, Sango-Ota, Ifo and Alaba-Rago Market, Iyana-Ipaja.

    The smugglers have been using the river for their illicit business for years.

    A motorcyclist, who took The Nation’s reporter to the river, alleged that some Customs officials are aware of the smugglers’ activities, but are handicapped because of the calibre of the people involved.

    “The reason I agreed to take you there is to tell you that there is nothing government can do to stop smuggling unless those in power provide employment for the youth.

    “I graduated from the Adeniran Ogunsanya College of Education more than six years ago but I have not been able to secure employment since I finished from the school. I make my money through the number of rice I convey to the market per day.

    “I am not the only youth involved; we are many. We use our motorcycles to survey where the Customs are staying at a particular time before we ask our vehicles to bring the rice to the road.

    “If you counted the number of people we met at that place, you will notice that they are no fewer than 80 and they are more than that. A majority of them are ex-security officers and the few serving ones have access to arms and ammunition and that was why I told you that it would be dangerous for you to use your camera.

    “The people you saw there are very deadly and they have wasted so many people that have threatened their business,” he said.

    A Customs officer from the Federal Operations Unit (FOU) of Zone A at Agbara-Lusada road, said the Customs mounted surveillance in the areas because it suspects the smugglers have a hide-out there.

    Several bags of rice, he said, have been intercepted by hire teams on the axis.

    “Although, I don’t know where the river you mentioned is located, but we cannot deny that smuggling is going on around this place and that is why many of our officers have been posted to curtail the unpatriotic activities of the smugglers.

    “My experience since I was posted to this area is that there is the need for the Federal Executive Council and the Minister of Finance to address the issue of high port charges, which created incentive for tariff avoidance and smuggling, and support the good efforts of the Comptroller-General of the Nigeria Customs Service, Alhaji Dikko Abdullahi.

    “Those of us posted to curb the nefarious activities of smugglers in the border areas are not finding it easy.

    “It is a difficult task because a majority of those involved are youths from the area and they know the area very well. Don’t forget that we, security officials, are strangers and we are not expected to detect all the routes that smugglers use in a few days. So, if you have detected a new route, it is your duty as a journalist to inform us before telling the public,” the officer said.

    The smugglers’ activities, was also learnt, are crippling the business of those importing the commodity through the ports.

    Last year, the country was said to have lost N16.3 billion to smuggling.

    A Customs officer at a check point mounted by the Customs before the Agbara Bridge popularly called death trap (Koto Orun) told The Nation that the number of youths now into smuggling has grown because of unemployment.

    Smuggled goods include second hand vehicles, textile materials, used cloths, bags, shoes, tyres, rice, frozen chicken, frozen turkey, vegetable oil, soap, furniture sweets, cigarettes, apples, pineapple and palm oil.

     

  • ICAN seeks nationwide implementation of cashless policy

    With an estimate of N3.5 trillion circulating yearly within the unbanked and under-banked (constituting over 10 million traders), the Institute of Chartered Accountants of Nigeria(ICAN) has urged the Central Bank of Nigeria to extend the cashless policy outside Lagos to bring more cash into the system.

    In addition, the institute said spreading the policy outside of Lagos will help the government in its anticorruption and anti-money laundering campaign.

    Addressing the institute’s 17th Association of Accounting Technicians (AAT) annual conference, ICAN President, Mr Adedoyin Owolabi said when cash remains outside the banking system ,the ability of banks to create credit and supply productive capital to the economy will diminish.

    His words: “Bringing cash into the banking system produces an equal increase in bank reserves, enabling banks to facilitate more consumer and commercial loans, thereby stimulating consumption and business growth.”He stressed that the institute supports the cashless policy not only because it can promote transparency of transactions through the provisions of audit trails but also because it can increase the size of the informal economy and access by government to loanable funds.

    On the AAT scheme, Owolabi said it has generated interest among school leavers ,including undergraduates of higher institutes in other disciplines. This, he attributed, to the scheme’s certificate acceptability by employers of labour and rising demand for the programme across the West African sub region.

     

  • ITF, NECA disburse N4m to trainees

    The Industrial Training Fund (ITF) and the Nigeria Employers’ Consultative Association (NECA) have disbursed N4 million as grant to 38 graduates of its skills acquisition programme.

    NECA’s Director-General, Mr Segun Oshinowo, said the grant was disbursed to successful trainees who presented business plans for assessment.

    Represented by NECA’s Project Director, Mrs Helen Jemerigbe, Oshinowo charged the recipients to use the fund to boost their businesses.

    He advised governments to complement efforts of ITF and NECA in boosting the informal sector.

    “If grants are given to more purposeful people, the level of unemployment in the country will be minimised and many youths will be gainfully engaged,” she said.

    ITF’s Lagos Zonal Director, Alhaji Sule Indabawa, urged beneficiaries to make judicious use of the funds.

    “There is nowhere in Nigeria where people are given two years training on skills acquisition free.

    “Only NECA and ITF can give additional training on entrepreneurship development and also give fund as grant to start business.’’