The Nation Newspaper

Category: Business

  • Fed Govt issues N101b T-bills, yields drop

    Fed Govt issues N101b T-bills, yields drop

    The Federal Government has sold N101.22 billion ($642.26 million) in treasury bills with maturity ranging from three months to six month, the Central Bank of Nigeria (CBN) said yesterday. Yields were also down more than 100 basis points due to strong demand for the paper.

    The apex bank according to Reuters sold N37.49 billion of 91-day paper at a yield of 12 per cent, lower than the 13.64 per cent it offered at the previous auction.

    It sold N63.73 billion in 182-day paper at 12.6 per cent, down from 13.80 per cent previously.

    Total subscriptions were at N220.88 billion, while demand for the 182-day bond was the heaviest, at N143.48 billion.

    Meanwhile, Yields on Nigeria’s 5-year and 7-year bonds fell more than 300 basis points at an auction on Wednesday, as Nigeria prepares for its inclusion in JP Morgan’s Government Bond Index for emerging markets (GBI-EM) from October.

    The Federal Government sold N60 billion ($380.71 million) worth of sovereign bonds with maturities in the range of 5 to 7 years at 12.93 per cent and 12.90 per cent, respectively, at a regular auction on Wednesday, the Debt Management Office (DMO) said yesterday.

    The 2017 bond was issued at 16.32 per cent at the last auction, while the 2019 paper was issued at 16.14 per cent last month.

    Total subscription for the notes stood at N82.94 billion, driven by strong participation from offshore investors and local pension funds taking positions ahead of the inclusion in the JP Morgan index, dealers said.

  • Stakeholders x-ray Moringa potential

    Stakeholders x-ray Moringa potential

    Harnessing the economic potential of the Moringa Olifera is the focus of the discussion at the first international conference on the crop at the University of Ilorin.

    Moringa is a highly medicinal plant used for theraptic treatments.

    Representatives of various organisations, including the Moringa Association, the academia, research institutes, colleges of agriculture and the National Agricultural Research System (NARS) are participating in the conference.

    Delivering a lecture at the conference, the Executive Secretary, Agricultural Research Council of Nigeria (ARCN), Prof. Yusuf Abubakar said the plant had aroused overwhelming national and international interest.

    Abubakar said: “Moringa has been described as an “all in one” plant in terms of its nutritional attributes, and elegantly summarised as a supermarket on a tree.

    “It deserves all the attention of policy makers, researchers, farmers, products promoters, and other players across the product value chain.

    “We recommend that it should be included amongst the value chain commodities of the Agricultural Transformation Agenda (ATA).”

    He said that the conference could not have been organised at a better moment than now considering the enormous potential of Moringa in contributing to Nigeria’s food security, wealth creation and poverty alleviation.

    According to him, Moringa is mostly found in the northern parts of the country, where it has been in use for many centuries by rural dwellers as a salad-like meal (kwado) or in soups (miyan zogala) and as a pot herb, until the recent discovery of its other benefits by researchers.

    He noted that the plant, grown in home gardens or as living fences, the leaves are commonly sold in local markets in many forms.

    He explained that recent scientific research classified Moringa as a very versatile plant as everything about it was useful in one way or the other, from its leaves to its roots.

    The executive secretary said the plant was discovered to contain specific antioxidants and health promoting ingredients that offered veritable answers to malnutrition, hunger and diseases.

  • Get trendy with fashion jewelleries

    Get trendy with fashion jewelleries

    Without too much cash, fashion buffs could get trendy with a good selection of affordable sterling silver jewellery, flashy collectible gemstones, vintage costume jewellery, pearls, wedding jewellery, rhinestone, fierce gold jewellery and swanky bracelets. They are inspired by famous designers for fashionistas who love to be bold.

    Boost your fashion savvy with bling jewellery. It signifies quality at average cost.

    No matter your class and purse, you could get trendy with them.

    They are made of high quality materials such as sterling silver, cubic zirconia simulated diamonds, precious gemstones and south sea shell or freshwater pearls that will suit you.

    Sterling silver jewellery is a popular choice for wedding occasions or bridal party gifts.

    Costume jewellery is mainly used for fashion purposes, opposed to real (precious) jewellery which may contain primary as collectables, keepsakes, or investments.

    There are many types of fashionable jewellery available in the market which is worn on various occasions, depending on choice. They come in metal bangles, bracelets, necklaces, earrings and belts design. You can buy it for various occasions at nominal cost. This is such a big industry that is growing every day with new horizons.

    Fashion jewellery, be it engraved or ethnic, are in high demand these days.

    It is usually made of low cost materials, including base metals, glass, bone, Agate stone, cowries and hemp in place of more valuable materials such as precious metals and gems. These items are usually, but not always, inexpensive, and often flashy. If you select well, you will look unique and stand out at any occasion. They beautiful and affordable and you could always find ways to mix and match them.

    They are often handmade or designed using various tools. Here is a brief detail about various types of fashionable jewellery.

     

    Agate stone jewellery

    These jewelleries are made of semiprecious natural agate stone in various shapes and sizes and assorted colours.

     

    Bone body jewellery

    This is made from animal bone. Polished and processed in different shapes and sizes. It is made into beads of different sizes.

     

    Beaded jewellery, carnelian jewellery or ethnic jewellery is made of glass beads and with metal pendants in different colours. They are mostly handmade.

     

    Why go for bling costume?

    There are many reasons to opt for bling jewellery. It is available in various metals and gives you a change, style and most of all, quality at average cost. Fashion jewellery is good for various occasion including weddings and festivals, so you are not bound to traditional jewellery alone.

     

    Girls fashion jewellery

    Girls are very much conscious towards fashionable jewellery. They always wear bracelets, necklaces, belts and other jewelleries to look attractive during various occasions and regular lifestyle. You can buy hand painted jewellery, ethnic, agate stone, diamond cut, carved bone, beaded jewellery and many other fashion jewelleries from any fashion jewellery store.

    Diamond, gold and silver jewelleries are costly items and you cannot follow the fashion by such huge investments all the time. Fashionable jewellery comes in multiple designs and style, and is made of different materials. It gives you a change from regular jewelleries. Such jewellery is very much famous among the youths. It is obvious, because they like change and cannot afford fashion at big cost. So, it is a right choice for them.

    Teenage girls are no exception to the fashion interest and excitement. What most teenage girls really can’t live without is fashion jewellery,

     

    Bracelets and cuffs

    Bracelets are worn around the wrist. There are various types of bracelets out there such as elastic bracelets, handmade bone stretch bracelet, metal bracelet, folding bracelets among others. Bracelets for men are also available at different shops in elegant designs and shapes.

     

    Necklaces and earrings

    Necklaces come in a variety of designs and shapes such as glass beaded, hanging beads, Agate stone beaded necklace, cowries shell necklace, horn and bone necklace. Generally earrings and necklaces are sold together as a matching set. Colourful patina

    earrings come in a large assortment of colours and sizes. They are very popular, as they go perfect with evening dress or ethnic dresses alike. They are usually available in colourful circular discs and concentric rings.

     

    Bling jewellery is for everyone

    It is available for kids and aged people too. Fashion is not restricted to senior only. Instead, different age people give fashion a new verge. This is such a big industry that is growing every day with new horizons. Fashion is your style, so whoever you are just carry it in your style.

  • ‘Why Nigeria needs a national dairy plan’

    ‘Why Nigeria needs a national dairy plan’

    The Federal Government has been urged to take initiatives to drive a National Dairy Plan.

    A consultant to German International Co-operation (GIZ) Sustainable Cocoa Business programme, Mr Dayo Mejabi Ekundayo, told The Nation that this will enable local producers to meet the growing demand for milk in the country. According to him, the consumption of dairy products has been growing exponentially.

    He said the industry needs to be positioned to provide livelihood to Nigerians and ensure supply of quality milk and milk products.

    Ekundayo, who is the Managing Director, Agricultural Business Concepts Limited, said consumers are demanding quality food products such as milk and other dairy products.

    According to him, local operators are yet to build value into the supply chain to increase milk consumers’ confidence in the industry and reduce milk processors’ current reliance on imported raw materials.

    He said local operators need to invest in the development of value added products .

    Ekundayo said companies have started to tap into demand for commodity dairy product, adding that there is scope for adding value and developing brands. At this stage, he said the local industry is not capable of hunting for potential markets to export of dairy products.

    He urged local operators to encourage dairy sector entrepreneurs to explore markets for dairy products.

    Ekun dayo stressed for the need for luring foreign investors with technical expertise and funds to invest in the dairy sector. Besides, he said export of milk by-products could be enhanced, either in fresh or in powered form.

    He urged the government to provide support and incentives to foreign and local investors to invest in the animal husbandry farms.

    Ekundayo said that there was a need to establish large milk processing plants for enhancing the production of processed milk as much of the traded milk is marketed unprocessed.

    Managing Director, Demacco Farms Limited, Mr Don Onyia said the local dairy industry need to be repositioned to show that it can produce its products in a sustainable way. He said the industry needs to work together to address barriers and opportunities to foster innovation and increase sales.

    According to him, the industry’s has to demonstrate commitment to efficiency and responsibility both on the farm and throughout the value chain.

  • ‘Investment, research key to boosting food production’

    ‘Investment, research key to boosting food production’

    Improving national food production will depend on massive investment in research and extension, an expert, Prof Abel Ogunwale has said.

    Extension is a service or system, which assists farmers through educational procedures in improving farming methods and techniques, production efficiency and income, which enhances level of living. All these have positive impact in lifting social and educational standards of the country.

    Ogunwale, who is of Department of Agricultural Extension and Rural Development, Faculty of Agricultural Sciences Ladoke Akintola University of Technology, Ogbomoso, Oyo State, spoke while addressing the institution’s eight inaugural lecture series 2012.

    Speaking on the theme, Repositioning Agricultural Extension: The umbilical cord of sustainable local food production, Ogunwale said the purpose of extension services is to transfer global agric information into localised knowledge that would be useful for the local farmer conditions. He said there was need for the nation to translate its huge agricultural potential into reality by encouraging local production and strengthening the value addition process.

    A professor of agricultural extension, Ogunwale said national and local government staff and extension should be trained in food production so that they become familiar with approaches to improvement and knowledge of food production methods. Stressing the role of extension service, the expert said it is a key to achieving successful local capacity building by assisting farmers to choose the appropriate farming system, which will yield results within a locality.

    Ogunwale said increase in agricultural productivity benefit the poor and dwellers through reduction in food prices. He said the government can improve production for small farmers by providing them better access to information and farming techniques generated by the extension service.

    According to him, adopting and localising technology that fits local conditions need huge human and institutional capacity, and rural extension service offers the best pathway for localising technology.

    The don stressed that investment in extension services can improve agricultural productivity, increase farmers’ income and will induce a conductive technological progress environment, which is critical in the process of agriculture productivity.

  • Driver sacks boss after becoming millionaire in Star Game Show

    Driver sacks boss after becoming millionaire in Star Game Show

    The stories emanating from the grand prize winners of the Star TV Game Show will delight any public relations and brand manager. Perhaps Nollywood scriptwriters and movie directors should come to the recording of the TV Game for story ideas.

    Every week for seven weeks, three people will win N1 million on the Star TV Game Show. Take Emeka John for instance. Emeka is a trailer driver, who was spotted drinking bottles of Star lager beer just at the right time and the right place. Unknown to him, Star was giving away instant gift prizes for Star drinkers through a raffle draw. Emeka was given some prizes including a raffle ticket to participate in Star TV Game Show in Lagos.

    He was flown to Lagos, all expenses paid, from his base in Benin, Edo State, to participate in the Game Show. Since Star Game Show is team-based, he was by sheer luck grouped alongside David Smith and Ugwu Chukwuemeka. At the end of the games, the trio emerged the winning team. Each team member pocketed N1 million for their victory.

    When he was asked about how he felt winning N1 million, Emeka did not mince words. “I am so happy at this N1 million I have just won. I am not sure that I would have been able to save this amount of money in 10 years. Now that I have this N1 million, I am going to sack my employer and get my own truck and be independent.”

    The joy of Chinedu Agoh, a 32 year old driver from Enugu State, knew no bounds when he won one million at the third edition of the Star TV Game Show. For several months, it had been his dream to be united with his wife and child, under the same roof. This dream for a long time appeared bleak due to his N25,000 monthly salary. Being the family’s sole bread winner, his savings could only pay for an ‘out of campus’ accommodation for his wife, a student of Alvan Ikoku College of Education, Owerri, and his son.

    Luck, however, shone on him when he qualified to participate in this years’ edition of the Star TV Game Show and subsequently won the star prize of one million naira.

    Speaking on how he will utilise his prize winning, Chinedu said: “I have been staying apart from my wife and son for the past six months due to lack of money to get a befitting accommodation. I sleep on the pavement of the underground floor of the hotel in Enugu where I work as a driver. I use wrappers and a cardboard given to me by my mother in place of a mattress. The place stinks, but I have no choice but to lay my head there every night. With this one million naira; I will pay for an accommodation for us to come back together as a family and open a bank account for my son.”

    He obviously had kind words for Star, describing the beer brand as: “the best brand. Other brands make me sick but Star keeps me strong. Star is the leading brand. I love Star and appreciate the brand’s work as it keeps shining.”

    Chinedu was not the only lucky individual of the night. Chidiaka Onyeachonam, a 26-year-old unemployed graduate and Abiodun Ali, a 27-year-old cloth seller, also smiled home with a million naira each.

    Even though Chidiaka is unemployed, his one million naira largesse has brought him temporary succour. He said: “I have been job hunting for years, but with one million naira from Star, I feel as if I am on the moon now. I am yet to come to the reality that my account will be credited with one million. I pinched myself about three times, just to confirm that I was not dreaming.”

    For Abiodun Alli, who hails from Ogun State, he believes fortune had finally found him. “I have been out of work since November last year, which led me into buying and selling of clothes. My customers majorly are students; I do go to their various schools to sell to them. I am sure with this new status, that era is over” he stated.

    Interestingly, Chinedu and the two other winners on the night of the third edition of Star TV Game Show, Abiodun and Chiadika, all stated that they did not have up to N200,000 in their accounts. But they would be ending the day N1 million richer.

    The third edition of the show also experienced an outpour of emotions from Daramola Ladipo, a 33-year old beer parlour owner in Lagos, who was also a contestant. He shed tears when he qualified as one of the nine initial contestants to partake in the games.

    He said: “I never believed that the show was real until I became part of it. I shed tears after the first round of the show, which qualified me to contest for the one million because I never expected I will pick one of the highest numbers. Indeed, is a game of luck. It is the joy from within me that made me cry. Even though I did not win, I have the confidence that I will win if I have the opportunity to be part of the show again. For Star, I pray the beer continues this good deed and remains strong in the market.”

    There’s always something for everyone in the Star TV Game Show. Whether it is the excited crowd as they cheer their teams on during the games or the antics of the audience when the millionaires finally emerge. It could even be the rib cracking jokes the show anchor, Gbenga Adeyinka, never tires of dishing out during the show. Or the open show of emotions from the winners as they are unveiled to the crowd. Whichever way you look at it, one thing is clear: there’s never a dull moment on the Star TV Game Show.

    Take the case of Elijah Anayagher for instance. Moments after the Benue State based architect was announced as one of the new winners of N1 million in the second edition of the game show, Anayagher was suddenly the toast of the crowd. Just as he made his way to his seat to await the official handing over of his prize money, Anayagher received the shock of his life: “Out of nowhere, this beautiful lady just sat on my legs and said that she had been supporting me during the round of games. The truth was that I never knew her but she kept saying that she wanted to be my friend and that I should not forget her when I start spending my money,” Anayagher stated even as he tried to suppress the burst of laughter  about the incident.

    Anayagher was one of the lucky few selected to participate in the second edition of the Star TV Game Show. He had gone to his favourite drinking spot to unwind with some friends when he was given tickets to partake in a raffle draw. “I didn’t know about any draw. I was surprised when the stewards in the bar gave me the tickets. I wasn’t actually the only one because they gave everyone that was drinking Star that evening.”

    Anayagher won several instant prizes from the raffle draw. However, the icing on the cake for him was that one of the tickets won him a place to participate in the Star TV Game Show.

    “I couldn’t believe it. I thought that it was scam but my friends convinced me that it was real”. Two weeks after he is now a millionaire. And the memories of the TV Game Show continue to linger for Anayagher. “I can’t forget the entire experience in a hurry. I met lots of wonderful people who I didn’t know before and we just became friends. I am happy that I won the money but I will also remember the excitement of Star TV Game Show for a long time to come,” he added. As for his new found friend, Andrew intends to reward her for her ‘friendship’.  ”Definitely I am going to share my good fortune with her and the others. They are like friends to me and I won’t forget them,” he stated.

    Indeed, it’s hard to forget the crowd at the Star TV Game Show. Participants in the game are picked from the audience to form three groups comprising three group members. The groups, A, B, C, go head to head in a series of games to determine which group will come out tops. The winning group gets N3 million to be shared equally by members of the batch.  Boisterous and ever supportive, the crowd cheers their preferred groups on as they vie for the cash prize. Chants of A for Action or B for Brightness or C for Champion, depending on where the pendulum of the audience’s support swings, rent the air during the games. While the audience’s support spurs some of the contestants on, for others, the tension is simply too much for them as they bungle their chances of becoming millionaires. Anthony Okosa, a trader for Enugu, was at the third edition of the TV Game Show. Though he wasn’t picked to participate in the game, he still enjoyed himself as a member of the audience. “Everybody can’t be millionaires. Unfortunately I was not chosen to participate so I had to remain in the audience. But I am still happy because being a member of the audience is also exciting. The atmosphere is that of fun and little tension but I have absolutely enjoined myself,” he said.

    Much of the liveliness of the crowd is owed to the commendable role of Gbenga Adeyinka, anchor of the show. As anchor of Star TV Game Show, Gbrenga Adeyinka has certainly showed that he is more than just your average comedian. Adeyinka’s ability to bond with the audience as well as his knack for making the game show interactive only adds to the excitement of the Star TV Game Show. For example, during the games, when a contestant fails to complete a puzzle, the audience, prompted by Gbenga Adeyinka, taunts him or her with songs. Don’t be surprised to hear songs such as ‘John Bull My Son, I sent You To School, you don’t Know how To Spell Your name” during the Star TV Game Show.

    While Adeyinka’s antics along with the excited crowd make the games interesting and exciting, the winners and their stories also makes for interesting reading. As at press time, nine millionaires had emerged in the Star TV Game Show. Twelve other lucky people will be crowned millionaires during the seven week long Star TV Game Show.

  • Dubai Lynx Ad festival rebrands

    Dubai Lynx Ad festival rebrands

    The organisers of Dubai Lynx have announced that its name will change from ‘International Advertising Festival’ to ‘International Festival of Creativity’. The move is to reflect the evolvement of the industry from one that has previously focused on traditional creative advertising to one that involves creativity in all forms of communications.

    The Dubai International Festival of Creativity is the leading awards and festival for creative excellence in advertising and communications in the Middle East and North Africa and the must-attend event on the region’s industry calendar.

    Since its launch in 2007, the number of entry categories at Dubai Lynx has more than doubled due to creativity stretching across a greater number of forms of communications.

    Held at the Madinat Jumeirah, Dubai, next year’s event will take place March 10 to 13, and will once again include an unbeatable line-up of international jurors who will use their expertise to award the best in creativity.

    Emma Lancaster, Festival Director of Dubai Lynx, said: “Entering their seventh year, the Dubai Lynx awards are established as the must win awards for the MENA industry.

    As organisers, we always strive to keep pace and what is clear is that creativity crosses a great number of platforms, from social media to technologies to user-generated content, meaning that to term the event as an advertising festival is no longer relevant.”

    The brand new 2013 Dubai Lynx website will be live from October 13 and will contain up-to-date information on the event including full details of how to register and enter. Held in association with the IAA – UAE Chapter and supported by Dubai Media City, the festival’s full programme will be released early 2013.

  • PIB’ll become law soon, says Deputy Speaker

    PIB’ll become law soon, says Deputy Speaker

    Speculations as to whether the Petroleum Industry Bill (PIB), a crucial document that sets up guidelines on the oil and gas operations in Nigeria would be passed into law or not may have been laid to rest, as the Deputy Speaker, House of Representatives, Emeka Ihedioha said the bill would be passed into law soon.

    He gave the assurance during the occasion of the Nigeria Extractive Industries Transparency Initiative (NEITI) Stakeholders’ Engagement on the bill in Lagos, yesterday.

    Ihedioha, said the PIB, when passed into law, would lay a solid foundation for transparency, structural, commercial and fiscal framework for the operations of the oil and gas sector in Nigeria, as well as drive broader reforms in the sector, adding that the uncertainty generated by the lack of a comprehensive, all inclusive legal framework to guide oil and gas operations in the country has led to massive capital flight and suspension of critical investments in the sector.

  • Rethinking pension scheme

    Rethinking pension scheme

    Governments all over the world get involved in pension matters in the form of laying down the legal framework, pension funds management and regulation of pension schemes. The Nigerian Government is not left behind. It has overhauled the legal framework for pension administration in Nigeria by promulgating the Pension Reform Act 2004 (PRA 2004). The PRA 2004 was passed into Law on June 23, 2004 by the National Assembly and assented to by President Obasanjo on June 25, 2004.  The PRA 2004 embodies the policies of the Nigerian government to solve the pension problem in Nigeria, both in the short and the long run.

    The thrust of the reforms has been in the direction of making the schemes contributory, thus the name Contributory Pension Scheme. Contributory Pension Scheme (CPS) defines pension entitlements in relation to stated contributions of the employer and the employee. The CPS is funded in the sense that the contributions and the returns from the investment of such funds provide the resources for meeting the pension obligations. It also aims to bring pension funds under private-sector management.

    A summary of PRA 2004 as contained in Schedule 3 of the Act says PRA 2004  “seeks to establish Contributory Pension Scheme for employees in the Public Service of the Federation, Federal Capital Territory and private sectors in the Federal Republic of Nigeria.” The objectives of the PRA’04, as stated in Section 2 of the Act, are to: Ensure that every person who worked either in the public service of the Federation, Federal Capital Territory or the private sector receives his entitlement as and when due; Assist improvident individuals by ensuring that they save in order to cater for their livelihood during old age; and Establish a uniform set of rules, regulations and standards for administration and payment of retirement benefits for the public service of the Federation, Federal Capital Territory and the private sector.

    The essential provisions of the new pension scheme designed to achieve the above objectives include mandatory coverage of all employees in organisations employing five or more persons in both the private and public sectors of the economy; employers and employees each contribute to the pension fund a minimum of 7.5 per cent of total emolument of the employee; an employer shall maintain a life insurance policy for each employee for a minimum of three times the annual total emolument of the employee and, in the event of the death of an employee, his entitlements under the life insurance policy shall be paid into his Retirement Savings Account (RSA).

    Other provisions of the PRA 2004 Act include that the employer and employee contributions shall be tax-deductible expenses in the calculation of income tax liabilities; every employee shall maintain an RSA in his name with any pension fund administrator (PFA) of his choice into which will be paid his pension fund contributions and accrued incomes from investments thereof; PFAs, licensed by the PenCom, are the only institutions to manage pension funds as from the commencement of the Act.; Pension funds and assets are to be held only by pension fund custodians (PFCs) licensed by the PenCom;  the PFA chooses a PFC to which the employer’s and the employee’s contributions are remitted by the employer to the exclusive order of the PFA.

    Under the new pension scheme, it is expected that all incomes earned from investments of pension funds are to be placed to the credit of individual RSA holders after deducting clearly defined and reasonable fees, charges, costs and expenses of transactions made by the PFA and no withdrawals shall be made from the balance standing to the credit of the RSA of an employee except on his retirement or on attaining the age of 50 years (whichever is later) and such withdrawal can be for programmed monthly or quarterly withdrawal calculated on the basis of an expected life span or for the purchase of an annuity for life from a life insurance company licensed by the National Insurance Commission (NAICOM) with monthly or quarterly payments.

    For public service employees transiting to the new pension scheme, their rights to retirement benefits shall be recognized in the form of an amount acknowledged through the issuance of a bond to be known as Federal Government Retirement Bonds (FGRB) respectively, in favour of individual employees if they have an unfunded pension scheme and Public servants with a funded scheme converting to the new pension system shall have their RSA credited with any funds to which each employee is entitled and, in the event of insufficiency, the shortfall shall immediately become a debt of the relevant employer and be treated with same priority as salaries owed.

    It was also noted that existing pension schemes in the private sector, which resemble the scheme envisaged in PRA’04 would continue to exist; otherwise they would be modified to comply with the PRA 2004. The PRA2004 requires all pension schemes in the private sector to be fully funded. The Nigerian Social Insurance Trust Fund (NSITF) shall cease to take contributions from workers with the commencement of PRA 2004 and shall make arrangements to transfer funds contributed and any attributable income thereof not required for the purpose of administering minimum pension as determined by PenCom, to their RSA accounts.  All pension funds and assets held and managed by NSITF shall be transferred to a custodian, as from the commencement of the Act and Pension funds and assets can only be invested in certain specified instruments. PenCom shall also undertake yearly inspection, examination or investigation of PFAs, PFCs, or the Pension Department to determine whether or not they are discharging their functions as set out in the PRA 2004.

    The benefits of the new pension scheme are enormous. Banks could witness enormous deposit growth from placement of pension funds in fixed deposits and from more regular payment of pension entitlements of existing pensioners. Also, the range of instruments on which pension funds can be invested means that the PRA’04 would boost the demand for saving products developed by banks. The new pension scheme is expected to generate N60 billion in contributions every year, it is expected that the growing and stabl mandatory purchase of life insurance policies by employers for their workforce.  In a few years time, when people begin to retire under the new pension system, the use of accumulated funds in individual RSAs to purchase annuities from insurance companies would also provide another major elixir for insurance business in Nigeria. It is appropriate at this time of expanding opportunities for insurance business that consolidation is taking place in the industry to foster well-capitalized and liquid insurance companies that could settle claims promptly.

    Stock broking firms stand to profit from the higher business volumes which the increased transactions on retirement bonds, corporate bonds and equities consequent upon the higher capital market operations that increased pension funds would engender. Similarly, mortgage and property development firms would experience greater profitable long-term opportunities for their real estates and commercial property development schemes as an increased build-up of pension funds forces pension fund managers to seek more and safer inflation-proof outlets for their funds by investing in these schemes.

    The challenge in Nigerian economy is that government has been financing infrastructure. In most part of the world, pension funds, because they are long term investment vehicles are the best source of investment for infrastructure like power, airport or road. The new pension scheme is a platform that can allow the private sector to take a lead and the government to provide a mechanism that would allow public/private partnerships to finance critical national infrastructure.

  • Falana blames government

    Lagos Lawyer Femi Falana (SAN), one of those whose flight was disrupted, has blamed the government for the woes in the aviation industry.

    He said: “Because of the irresponsibility of our government, aviation industry has been left in the hands of private owners. I have the white paper on Nigeria Airways where over one billion dollars was said to has been collected by the Obasanjo government and that is enough at that time to set up two or three airlines.

    “All the properties in GRA and other places including London were sold out give away prices and if your union is to fight the crisis in the aviation industry, they have to link up with progressive civil society organisations.”

    “Banks were collapsed by criminals, the government has put in over N3trillion in the last four, five years why have they neglected the aviation industry? If I am owing you, you can take me to court, even, as a government that is why the courts are there.”