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Tag: Bill

  • Nigerians and Bio-Safety Bill

    The Nigeria Bio-safety Bill is one bill that has suffered a lot of legislative setback over the years. It was first presented to the National Assembly in 2006 and was passed eventually in 2010 during the sixth assembly, but failed to get presidential assent before the expiration of the last administration.

    The bill amongst other things, seeks to provide derived benefits from modern biotechnology under a legal framework for economic growth, improved agriculture, job and wealth creation, industrial growth and sustainable environment. It also aims at minimising risks to human health, confirm and harness potential of modern bio-technology, protect and guard against any adverse effect of Genetically Modified Organisms (GMOs) on biological diversity and the environment and guard against any economic consequences among others.

    However, the bill was returned to the seventh assembly for further legislative actions with the hope that the President may assent to it this time around. It was on this belief that the Senate recently conducted a public hearing on it.

    One of the major issues that the bill seeks to address is the establishment of a National Bio-safety Management Agency for the country. The agency if established would be responsible for the development of risk-management plans and strategies for protecting human health, biological diversity and the environment from potential risk associated with genetically modified organisms. The agency is also to take samples and carry out laboratory analyses of crops, products or materials for purpose of determining if they contain genetically modified organisms and ensure compliance with the law.

    It is instructive to add that the overall objective of the bio-safety bill is to provide a regulatory regime and guidance for the sustainable development of the science of modern biotechnology, its application and safe use of GMOs and the products thereof without prejudice and risk to public health, environmental health, national sovereignty, human dignity and fundamental human rights.

    The bio-safety bill covers all modern biotechnology activities, GMOs and products thereof including all germplasm. It defines modules of practice of modern biotechnology, the handling, transfer and use of GMOs and products thereof to ensure safety to the environment and to human health. It is also intended to guide different segments of society in contributing to safe application of modern biotechnology.

    The bill recognises the complex issues to be addressed by relevant authorities in the judicious application of modern biotechnology, ensures that modern biotechnology activities and their products (GMOs) are safe for the environment and to human health. It bases the deliberate release of GMO on advance informed agreement.

    Furthermore, the bio-safety bill defines offences and penalties for violation; contains powers to authorise release of GMOs and practice of modern biotechnology activities; confers the power to carry out risk assessment/management before the release, handling and use of GMOs; covers all genetically modified organisms/living modified organisms, products food/feed and processing and also covers socio-economic consideration in risk assessment.

    Interestingly, Nigeria signed and ratified an internationally binding bio-safety protocol known as the Cartagena Protocol on Bio-safety in 2000 and 2002 respectively. The Cartagena Protocol on Bio-safety is a protocol of the Convention on Biological Diversity. The protocol entered into force on September 11, 2003 and currently has 160 members. The Cartagena Protocol on Bio-safety, on its own, addresses the safe transfer, handling and use of Living Modified Organisms (LMOs) that may have adverse effects on conservation and sustainable utilisation of biodiversity, taking into account risks to human health and focusing on trans-boundary movement of the LMOs.

    The protocol requires parties to it to develop their bio-safety administrative and regulatory framework in order to effectively regulate activities of modern biotechnology, GMOs and products thereof to avoid harmful effects on the environment, biodiversity and human health. The bill is therefore to domesticate the Cartagena Protocol on Bio-safety which Nigeria has signed and ratified and to abide by the protocol in line with our national needs. It is in furtherance of this that Nigeria participated fully at the fifth meeting of the Conference of Parties of the Convention on Biological Diversity serving as Meeting of Parties to the Cartagena Protocol on Bio-safety, which was held on October 11 – 15, 2010, in Japan.

    Modern biotechnology has been identified as an important tool that can help countries to achieve food sufficiency/food security, industrial growth, health improvement and environmental sustainability.

    It entails the fusion of cells beyond the taxonomic family that overcomes natural physiological reproductive or combination barriers and that are not techniques used in traditional breeding and selection. It is gene specific. Nigeria adopted biotechnology policy in 2001 as an alternative tool to achieving the objectives of biotechnology for national development. A National Biotechnology Development Agency was further established in 2001 to actualise the policy to promote biotechnology activities in the country.

    However, the absence of a bio-safety law has hampered the activities of the agency in the research and development in genetically modified organisms in the country, thereby, denying Nigeria the benefits associated with modern biotechnology practice.

    Modern biotechnology helps to produce plants that can reduce Greenhouse gases thereby reducing effects of climate change; it is precise in its trait utilisation, develops plants that have greater tolerance to stress in marginal environment, improves growth and productivity of plants and animals, food quantity, nutritional improvement and consistency for healthy living. Besides, it produces new breeds of animals and plants, reduces use of pesticides and herbicides, as well as farming land area with higher yields. In as much as modern biotechnology has great potential, there are fears of possible adverse impacts on the environment and human health, which has necessitated the bio-safety bill.

    As rightly enthused by Prof. Shehu Ado of the Institute for Agricultural Research, Zaria, the coming on board of the bill would equip Nigerian scientists to practise biotechnology as it relates to food, health and the environment. To him, the bill would protect Nigerians as all biotechnology activities and scientists would be subjected to strict monitoring to ensure that no harmful activities are employed to affect human, animals or the environment.

    As he put it, “It will help the country to harness the potential modern technology has to offer under a legal regime. There is currently a lot of concern regarding the possible toxicity and allergy to food products derived from GMOs. There are equally concerns on the environmental consequences of the use of GMOS and their release into the environment, in particular, the effects on biological diversity, but it will  ensure environmental, human and socio-economic safety”.

    The consequences of not having a biosafety law on the environmental, human health and on our economy may be unquantifiable, which might pose serious threat to our national security, particularly now that modern biotechnology has come to occupy centrestage globally in nearly all facets of human endeavor.

    Some of the consequences are that farmers might resort to the smuggling of GMO seeds they consider as having the potentials to enhance their earning without risk assessment being carried out on them; there will be apprehension among the populace on the socio-economic consequences of modern biotechnology and GMOs, especially among the small-scale farming systems that are prevalent in Nigeria. Since there will be no law to protect them, Nigeria will not be able to guarantee the purity of its agricultural products for the international market, thereby losing her international partners and also foreign earning. Nigeria will serve as a dumping ground for unregulated GMOs which may have adverse impact on our environment and human health.

    Finally, Nigeria will be denied the opportunity to harness the potential modern technology has to offer in the field of improved food production, medicine/health, industrial growth and environmental sustainability, employment generation and wealth creation.

     

    • Samson wrote in from Jabi, Abuja

  • ‘Implement HYPADEC bill’

    A group under the aegis of North Central Youth Forum (NCYF) has decried the non-implementation of the Hydro-Electric Power Producing Areas Authority Commission (HYPADEC) Bill long after President Goodluck Jonathan signed it into law.

    The group has urged Jonathan to expedite action on the take-off of the commission.

    The youth, in a statement signed by Alhaji Hamzat Idris, (Kwara), Mr. Ishola Olawole (Kogi) and Hajia Hawa Saliu (Kebbi), lamented that the commission had not begun operation, despite the N250 million allocated to it in this year’s budget.

    The youth, who said the bill had been passed to the Ministry of Power for implementation after the President’s assent, enjoined the Minister of Power, Prof. Chinedu Nebo, to ensure that the bill was returned to the Presidency for final approval.

    They expressed their hope that the Presidency had approved the composition of the management of the commission, adding that “it is the responsibility of the Ministry of Power to return it to the Presidency for final ratification”.

    The group recalled that it had made similar appeal to the President in a letter sent to him in December, 2013, noting that copies of the letter were also sent to the Chief of Staff (Presidency), the National Security Adviser, Special Adviser on Political Matters and the National Chairman of the Peoples Democratic Party (PDP).

    The group said: “We appreciate your (President Jonathan) good intention which culminated in appending your signature to the bill that established the commission after it was passed by the two chambers of the National Assembly. But, we are, however, constraint to write this letter in view of the importance of the commission to the well-being of the people of the North Central geo-political zone.

    “It is pertinent to mention here that the devastating effect of flood that always ravages most parts of the North-central states during the rainy season could only be tackled by the commission.

    “Rather than an ad-hoc arrangement, it is better, Mr. President, to expedite action on the take-off of the commission.

    “The commission, based on the provisions of the Act that established it, is a position to bring about lasting solution to the incessant flood incidents usually occasioned when excess water is released from the hydro dams situated in Niger and Kwara states.

    “The bill establishing The Hydro-Electric Power-Producing Areas Development Commission vested in it the responsibility of managing the ecological hazard that results from the operations of the Hydro dams and other related matters.

    “We, therefore, appeal to your Excellency to immediately constitute the management of the commission since names of those to serve in it have

    been forwarded to the appropriate quarters since it does not require any confirmation by the National Assembly.

    “We believe that such a move will improve the living standard of the people of the entire North-Central geo-political zone.”

  • New bill awaits President’s assent

    New bill awaits President’s assent

    It is about a month since the National Assembly passed and harmonised the Pension Reform Bill, 2014 but it is yet to get the assent of President Goodluck Jonathan.

    The Nation learnt that the new bill which will automatically repeal the Pension Reform Act 2004 has since left the chambers of the National Assembly.

    The proposed law covers private organisations with at least three or more employees in the Contributory Pension Scheme.

    Chairman of the Senate Committee on Establishment and Public Service Matters, Senator Aloysius Etok, in a telephone conversation confirmed that the bill has since left chambers.

    He said the bill is now going through some administrative process as it is in the office of the Clerk of the National Assembly. Etok however said he cannot confirm if it has been sent to the presidency for assent.

    A senior official of the National Pension Commission (PenCom) who asked not to be mentioned , said  they are expecting the National Assembly to send the bill to the Presidency.

    He said the Commission is happy that the National Assembly has passed the bill and hopes that there will be a quick assent by President Goodluck Jonathan.

    A quick assent by the president is necessary to further bolster the pension industry.

    Director-General of the National Pension Commission (PenCom), Mrs. Chinelo Anohu-Amazu, said the new bill when signed, would into law would enhance the protection of pension fund assets and unlock the opportunities for deployment of pension assets for national development.

    She said it would also review the sanction regime to reflect current realities and provide for the participation of the informal sector and also provide the framework for adoption of the Contributory Pension Scheme by states and the local governments.

    She also said that in line with the joint resolution of the National Assembly to put a stop to some instances of widespread corruption in various pension departments, the new bill seeks to enhance the regulatory authority and efficiency of the Commission to provide greater oversight on, and reposition the Pension Transition Arrangement Departments (PTAD) for greater accountability in the administration and payment of pension under the Defined Benefit Scheme (Pay As You Go).

    It is noteworthy to state that the new Pension Reform bill stipulates at least a 10-year jail term on conviction for pension fund administrators, or anybody who misappropriates or diverts pension funds.

    Under the new law, the provision of a fine of an amount thrice the misappropriated, or diverted sum must be paid when convicted of diversion or misappropriation.

    The bill also stipulates that any pension fund administrator or pension fund custodian, or anybody convicted for diversion or misappropriation of pension funds, would be compelled to refund the said amount and forfeit property, asset or fund with accrued interest to the Federal Government.

    Basically, the bill is meant to address the serial stealing of pension funds.

    In January 2013, a Director of the Police Pension Office, Mr. John  Yusuf, practically walked away free after allegedly embezzling billions of naira of police pension funds after he was left off with a bail of N750, 000.

    He was handed a two-year jail sentence for conniving with others to defraud  the office and pensioners of N27.2 billion out of which he admitted to stealing N2billion but Justice AbubakarTalba gave  him an option of fine in the sum of N750,000 for three offences he  pleaded guilty to. Each of the three offences attracts a two-year jail term and the sentences were to run concurrently.

    Yusuf’s case raised national uproar as he was the first to be jailed among persons involved in the N38.8billion Police pension scam. It also exposed the loopholes in the Pensions Act and emphasised the need for urgent reforms in the sector.

  • New pension bill will protect assets, says PenCom

    New pension bill will protect assets, says PenCom

    Expectation is high in the pension industry following the passage of the new pension bill by the Senate.

    Acting Director-General of the National Pension Commission (PenCom), Mrs. Chinelo Anohu-Amazu said when the bill is signed into law, it will enhance the protection of pension fund assets as well as unlock the opportunities for deploying the assets for national development.

    She said it will also review the sanction regime to reflect current realities and provide for the participation of the informal sector, adding that it will provide the framework for adoption of the Contributory Pension Scheme by states and local governments.

    Mrs. Anohu-Amazu who spoke with The Nation in Lagos also said in line with the joint resolution of the National Assembly to put a stop to corruption in various pension departments, the new bill will enhance the regulatory authority and efficiency of the Commission.

    This will also give the Commission opportunity to give greater oversight on, and reposition the Pension Transition Arrangement Departments (PTAD) for accountability in the administration and payment of pension under the Defined Benefit Scheme (Pay As You Go).

    With the passage of the bill by the Senate, she said the Commission is is awaiting the House of Representatives to also pass the bill.

    Last week, the Senate passed the “Pension Reform Act Cap P4 Law of the Federation of Nigeria 2011 (Repeal and Re-enactment) Bill 2014 (SB.288), sponsored by Sen. Aloysius Etok.

    The Senate, after an exhaustive debate on the bill at its Committee of the whole house voted for its passage into law and urged President Goodluck Jonathan to sign it into law as soon as possible.

    Chairman, Senate Committee on Establishment and Public Service, Senator Aloysius Etok, spoke on the penalties for defaulters under the Contributory Pension Scheme.

    Etok said the Head of Service and heads of different departments have directed all the accounting departments to make sure that whatever pension deduction made should be treated as a sacred and immediately transmitted to the receiving authority.

    The problem which PenCom has continuously encountered, according to him, is that people fail to provide genuine and credible data on themselves including their PFAs.

    He noted that there were some who have not even appointed PFAs and therefore kept deducted funds in their accounts pending when they have the data to transfer them.

    He said: “We have like buffer stock funds pending in different places. But with the enactment and passage of this bill and (when it) is assented to by the president, all the penalties and all the prescriptions contained in this Act would be followed strictly by the various agencies.

    “We have penalties ranging from 10 years imprisonment. For even failing to give proper information, you have to pay N500,000. And if you embezzle pension funds now, you will pay not less than three times the amount of funds you embezzled. That is how serious this bill has treated pension funds.

    “If you embezzle N10,000 you are bound to pay a minimum of N30,000 and in some circumstances the presiding judge has the right to make you refund and even go to prison.”

    He added that the previous pension law had some clauses and those who had embezzled pension fund before the passage of the new bill would be tried with respect to the old law.

  • ‘New Pension Bill ‘ll change industry’

    ‘New Pension Bill ‘ll change industry’

    One of the bills that may receive attention from members of the National Assembly as they resume from recess is the Pension Reform Bill, 2013.

    The bill, which seeks to repeal the Pension Reform Act (PRA) 2004 and enact the Pension Reform Act 2013 is undergoing legislative process at the National Assembly.

    The Chairman, Senate Committee on Establishment and Public Services, Senator Aloysius Etokin told the The Nation on telephone that the committee will renew efforts to ensure speedy passage of the bill as soon as the National Assembly members resume.

    He assured Nigerians of a more regulated and stronger pension system.

    If the Bill is passed, it will bring changes to the pension industry.

    The PRA 2004 was only applicable to employers with five or more employees. But the 2013 bill will be applicable to employers with three or more employees.

    The total rate of contribution will increase from the current 15 per cent of monthly emolument being 7.5 per cent each by the employer and the employee to 20 per cent with a minimum of 12 per cent by the employer and a minimum of eight per cent by the employee.

    This section in the 2013 bill is one of the most crucial as it seeks to change the basis upon which employee’s monthly contribution is calculated. This is known as total emoluments in the proposed law as may be defined in the employee’s contract of employment but shall not be less than a total sum of basic salary, housing allowance and transport allowance. Monthly emolument simply means a total sum of basic salary, housing allowance and transport allowance.

    The implication of the new definition is that all employers and employees will have to pay more.

    For instance, a company with a salary structure in which basic housing and transport allowances account for about 50 per cent of the total compensation, the employees may have to make additional contributions of over 100 per cent of their current contributions while for the employer it could be over 200 per cent increase notwithstanding that the headline rates have only been increased by 0.5 per cent and 4.5 per cent for the employee and the employer.

    The scheme will also enhance the powers of the National Pension Commission (PenCom) in its regulatory and enforcement activities as well as enhance the protection of pension fund assets.

    It will unlock the opportunities for the deployment of pension assets for national development, review the sanctions regime to reflect current realities; and provide for the participation of the informal sector.

    The bill also seeks to provide the framework for the adoption of the Contributory Pension Scheme by states and local governments, which will create new offences and provide stiffer penalties that will serve as a deterrent against mismanagement or diversion of pension funds’ assets under any guise, as well as other infractions of the provisions of the Act.

    The 2013 bills crutinised the provision of the 2004 Act with respect to qualifying years of experience for the director-general such that the requirement is graduated in descending order from that of the Chairman at 20 years to that of the director-general at 15 years. This particular clause in the bill has been most contentious.

     

  • 2014: New Bill, improved regulation, others raise hopes for industry

    2014: New Bill, improved regulation, others raise hopes for industry

    Following the enactment of the Pension Reform Act (PRA) 2004 and its subsequent implementation, the problems that confront workers after their retirement have largely disappeared. The appointment of a substantive head for the National Pension Commission (PenCom) and speedy passage into law of  the 2013 Pension Reform Bill are some of the factors that will define the pension landscape this year, writes OmobolaTolu-Kusimo.

    Prior to the establishment of the National Pension Commission (PenCom) and enactment of the Pension Reform Act 2004, pension schemes in Nigeria were bedeviled by many problems.

    The public service operated an unfunded Pay As You Go Defined Benefit Scheme under which the payment of retirement benefits were budgeted yearly. The allocation for pensions was often one of the most vulnerable items in budget implementation.

    In many cases, even where budgetary provisions were made, inadequate and untimely release of funds resulted in delays and accumulation of arrears of payment of pensions. There were outstanding pension liabilities, weak and inefficient administration of pension schemes and pension scam.

    Also, most private sector employees were not covered by any form of retirement benefits. Private sector schemes were mostly “resignation schemes” as opposed to “retirement schemes.”

    It was obvious, therefore, that the Defined Benefits Scheme could not be sustained. Against the backdrop of a huge deficit, arbitrary increases in salaries and pensions as well as poor administrative structures, the need for pension reform became glaring.

    It necessitated a re-think of pension administration in the country by the administration of President Olusegun Obasanjo. Accordingly, the administration initiated a pension reform to address and eliminate the problems associated with pension schemes in the country. The outcome of the reform was the enactment into law of the Pension Reform Act (PRA) 2004.

    One of the benefits of the new scheme is that retirement benefits are safe and available to pensioners promptly. It has the potential to stem the trend of thieving, and has the ability to end the menace of ghost workers in the civil service.

    According to PenCom, there is also a principle of separation of custody of funds from management and supervision.

    The PRA establishes a Contributory Pension Scheme (CPS) for payment of retirement benefits of employees of the public service of the Federation, the and the private sector. Under the CPS, the employees contribute a minimum of 7.5 per cent of their basic salary, housing and transport allowances and 2.5 per cent for the military. Employers in the public sector contribute 7.5 per cent while the military 12.5 per cent.

    Employers and employees in the private sector contribute a minimum of 7.5 per cent each. An employer may elect to contribute for the employees such that the total contribution shall not be less than 15 per cent of the basic salary, housing and transport allowances of the employees.

    The Act also established PenCom as the single body responsible for the regulation of the pension industry in Nigeria with a cardinal objective to regulate, supervise and ensure the effective administration of pension matters.

    The Pension Fund Administrator (PFAs) and CPFAs are the key operators under the scheme and as such are responsible for the administration and management of pension funds under the Act. They deal directly with the contributors or Retirement Savings Account (RSA) holders and their beneficiaries on continuous basis. The PFCs on their part are subsidiaries of licensed financial institutions responsible for the custody and safe keeping of pension assets.

    At present, the pension industry boasts of N3.8 trillion pension fund.

    Meanwhile, events that will shape the industry in the year include the Pension Reform Bill, adoption of risk-based supervison, investment opportunities, issues of non-remmittance, transfer window, decentralisation among others.

     

    Adoption of risk-based supervision

    The commission would continue to fine-tune its risk-based supervisory approach in the discharge of its supervisory and regulatory function. In this regard, PenCom has deployed and implemented a risk management and analysis sytem (RMAS), which follows off site examinat

     

    ion of pension operators as well as generate timely industry report.

     

    Appointment of substantive DG

    Since the exit of the pioneer PenCom Director-General (DG), Ahmad Mohammed and the directors a year ago, the Presidency has not replaced them. Instead, it appointed Mrs Chinelo Anohu-Amazu as acting DG.

    This led to a lull in activities at the commission. But with the appointment of a substantive head, there is bound to be an improvement in the supervisory and oversight functions of the agency. The commission is waiting for a substantive head as the Senate Committee on Establishment and Public Service Matters headed by Dr. Alloysius Etok winds up the screening of the nominated chairman and commissioners.

    President Goodluck Jonathan had sought the Senate confirmation of former Governor Adamu Mu’azu of Bauchi State as chairman of the Commission; Anohu-Amazu (Southeast), Director-General; Omotowa Gilbert (Northcentral); Mohammed Abubakar (Northwest) and Adesojo Olaoba-Efuntayo (Southwest) as commissioners. A source hinted that the president may inaugurate the appointees this month.

     

    Supervision of old pension scheme

    Mrs. Anohu-Amazu said the Commission is refocusing attention on the supervision of the old scheme to eliminate its inefficiencies.

    This, she said, would be carried out through the Pension Transitional Arrangement Department (PTAD) established by the Federal Government.

     

    Dynamic investment regulation

    The commission employed dynamic investment monetary procedures that focused on risk issues as they affect the investment portfolio of pension fund. This was backed by support activities towards the development of new financial instruments and deepening the financial market. Plans are in the pipeline to introduce multi funds and allow foreign investments by pension funds. In order to ensure successful implementation of this programme, research capabilities are also being enhanced in investment and risk manage

     

    ment.

    Investment opportunities

    It is expected that the new pension bill, if passed into law, will boost investment opportunities for PFAs in the country. Mrs Anohu-Amazu said the need to broaden the universe of instrument for pension fund investment is of equal importance as the need to support the drive for tax-efficient laws that would promote the introduction of alternative assets and significantly impact on contributors and the economy.

    She cited the Real Investment Trust (REITs), Asset and Mortgage backed securities, adding that the commission has identified dearth of investible financial instruments.

     

    Amendment of the PRA 2004

    Amendment of the Pension Reform Act 2004 is ongoing in the National Assembly and has passed through the second reading in the Senate. The amended Act would address various stakeholders’ concerns and other problems the commission identified during the implementation of the reform since 2004.

     

    Compliance by small employers on CPS

    Compliance among the small sized private sector employers remains a critical challenge in the implementation of the CPS.

    Mrs Anohu-Amazu said these organisations see the CPS as additional costs to their operations and are not willing to implement the scheme.

    She added that the informal sector and self-employed persons lack a coherent structure and have an unwieldy composition, which renders their integration into the new scheme difficult.

    Policy issues, such as contribution rate, mode of collection and enforcement have been addressed by the framework put in place by the commission, she added.

     

    Transfer window

    Transfer window will avail contributors under the CPS opportunities to move their RSA account from one PFA to another. This is expected to increase customer service and market efficiency. At present, this remains a challenge for PenCom to achieve because of lack of proper identity management structuire in the country. But the commission has promised a biometric system in place. The commission is optimistic that the transfer window will be opened soon.

    Non-remittance

    In January, last year, PenCom asked the Attorney-General of the Federation for a fiat to institute criminal proceedings against employers who default in remitting pension contributions of their employees to their RSA.

    In a circular, the commission said the move will enable it institute criminal proceedings against employers for persistent refusal to remit pension contributions as at when due. The Commission called for the amendment of Section 11(7) of the Pension Reform Act, PRA 2004, stressing that the provision has alot of limitations.

     

    States’ participation

    Southwest Zone which comprises Ekiti, Lagos, Ogun, Oyo, Ondo and Osun states led other zones as far as CPS implementation is concerned.

    According to reports from PenCom, all states in this geo-political zone have enacted the Act to establish the CPS for civil servants while almost all have started its implementation.

    Going by this, workers in the Southwest zone are guaranteed pleasant retirement.

    With many of the state government promising that they would comply fully this year, PenCom believes that they woukld do the needful for their workers.

    Mrs Anohu-Amazu has, however, assured pensioners under the new scheme of prompt payment of pension and security of pension assets this year. He also assured them of compliance by employers and effective service delivery by operators.

    Generally, it assured of a safe and sound industry, positive contribution to economic development and contribution to social safety net.

    Vice President, Nigeria Labour Congress (NLC) Issa Aremu while speaking at the opening of PenCom zonal office in Kano, commended the agency for changing the story of pensioners from that of agony to joy in retirement.

    He said PenCom’s remarkable growth and development in less than 10 years of its establishment, showed that the nation is capable of institution building.

    With 20 PFAs, seven closed PFAs, four Pension Fund Custodians with impressive turnover, about N3.8 trillion worth of pension fund assets and 5.83 million registered workers, PenCom deserves commendation, he added.

    “The old defined benefit scheme as good as it could be is not sustainable. With the new pension scheme, there is good corporate governance, strengthened PFAs, with guaranteed transparency and accountability.

    “All the revelations about the public sector pension scam show that we must urgently think outside the box of unfunded, crime-prone defined benefit (DB). The future lies in the mandatory individual defined contributions which the Pension Reform Act represents. The bane of public sector pension lies in its non-contributory character as well as sheer corruption and diversion of funds even allegedly for partisan political purposes. NLC protest in the past over pension is legitimately directed against this much abused non-contributory public pension scheme,” he said.

    Managing Director, AIICO Pensions, Mr. Lounge Eguarekhide, said the regulatory environment and processes in the pension industry are stable.

    He said: “I think that investment return was a lot better last year than it has been over the last two years. Compliance has improved because PenCom has appointed recovery agent that have done some work in improving compliance to the CPS. For this year, I think we are going to see some of consolidations of work done by the regulator but the distraction of elections would probably slow things down on the government side.

    “So we are not likely to see a lot of recruitment of workers on the government side. We are rather hopeful that with recoveryin some of the sectors particularly the new electricity management that is place among other positive developments in the industry, there will be huge growth in pension account in 2014.”

     

  • Bill to establish global financial centre coming

    Bill to establish global financial centre coming

    A Bill for the establishment of an international financial centre is before the National Assembly, the Central Bank of Nigeria (CBN) has said.

    Its Governor, Sanusi Lamido Sanusi, who made this known at the launch of the Financial Markets Dealers Quotations (FMDQ) Over – The-Counter (OTC) Plc last week, said the FMDQ plan is in line with the objectives of the Financial Services Sector (FSS2020), initiated to develop financial markets.

    He said the platform is expected to bring about increased liquidity in the instruments of unlisted securities, increase attraction and flow of resources to small and medium-sized enterprises and enhance price discovery and financial inclusion potential, among others. He added that this would lead to a vibrant private sector and increase contribution to the economy.

    Sanusi said the CBN is keen to see that the strategic objectives are achieved. Of immediate relevance is the objective that relates to the strengthening and deepening of the domestic financial markets – money, bond, currency and derivatives.

    He said to improve on the governance of money market operations, the CBN executed the Nigerian Master Repo Agreement (NMRA) – an adaptation of Global Master Repo Agreement (GMRA) with banks and discount houses accessing funds at its window.

    Sanusi explained that one of the reasons the Nigeria financial system is at risk is because the country depends so much on the banks alone for the provision of finance.

    He said tapping into the pension funds and external parties basically diversifies the sources of long-term funding, reducing risk on banks’ balance sheet.

    “We all know that the country needs long-term funding for infrastructure development and a deeper financial market. One of the reasons the banking system remains a big risk is because the economy depends so much on the banks alone for the provision of finance,” he said.

    Sanusi explained that from a banking stability perspective, developmental perspective, financial development perspective and risk management perspective, the FMDQ is great idea.

    He said efforts of the FMDQ, a professional body for banks, discount houses and other relevant financial institutions, in fostering financial markets development in Nigeria is commendable and has complemented the efforts of government and regulatory authorities.

    CBN Deputy Governor, Economic Policy, Sarah Alade, said FMDQ will enhance market transparency. She said FMDQ will make the market more than before.

    “From the central bank point of view, you know the channel for implementation of monetary policy is financial markets. So if a market is efficient, the implementation of monetary policy will be efficiently done and everyone will benefit from it. We have been talking about how to channel credit to the real sector, the efficiency with which the financial market operates affect monetary policy,” she said.

     

  • House may consider Bill to harmonise HND/BSC

    House may consider Bill to harmonise HND/BSC

    The discrimination between the Higher National Diploma (HND) certificate holders and degree holders in Nigeria may soon come to an end.

    The Chairman, House of Representatives Committee on Education, Aminu Suleiman, promised to liaise with other lawmakers to sponsor a bill that will harmonise both certificate holders in the labour market.

    He made the promise while responding to questions at the 28th convocation lecture of Yaba College of Technology (YABATECH).

    He expressed his displeasure on the issue, describing it as unnecessary.

    The law maker, therefore, advised the polytechnic students to concentrate on their studies and acquire relevant skills so that they can make a difference in the labour market.

    His words: “My advice to you is that you are here now; face your studies so that you can make a difference in the labour market. What really matters is not the certificate but the difference you can make out there. Once people realise you have the skills they want and you are productive, they will respect you and will not discriminate against you.”

    He commended the management of the college for establishing entrepreneurship development centre to train students on vocations. He enjoined other institutions in the country to emulate it.

    The Director-General and Chief Executive Officer of National Office for Technology Acquisition and Promotion (NOTAP), Dr Umar Bindir, while delivering the convocation lecture titled: “Synergy in technical, vocational and entrepreneurial education for industrial growth: Panacea to survival of small and medium scale business,” said technical, vocational and entrepreneurial education is the major factors for industrial development and solution to the survival of Small and Medium Enterprises (SMEs) in Nigeria.

    According to him, the interaction between these three elements (technical, vocational and entrepreneur) will not only make Nigeria achieve her Vision 20:20:20, but will also catapult the country among the top 20 economies in the world.

    “The interaction between technical, vocational and entrepreneurial education is a sine qua non for industrial growth. Small and Medium Enterprises (SMEs) cannot survive any where globally without the three key elements for their growth and development.

    “It is very important to clarify at this introductory stage of my presentation that one element among the three elements cannot practically be singled out in isolation to lead the nation to achieve the desired transformation without corresponding interplay among the other elements,” he said.

    Bandir, who lamented that despite Nigeria’s endowment in human and natural resources, it is not among the developed countries because it failed to connect its technical, vocational and entrepreneurial skills for technological advancement.

    He added: “Knowledge institutions such as universities, polytechnics and research centres must transform their operations to emerge not just as facilities for students to come in and graduate with certificates but such systems must evolve a research, development and experimentation centre, to study and adapt local national and international technologies to local contexts and ensure their affordability for local communities and individuals.”

     

     

    In her welcome address earlier, the Rector of the institution, Dr Margaret Ladipo, said Yabatech has continued to make immeasurable contributions to the country through productive graduates that are making waves in the labour market.

     

  • Bill to regulate child delivery underway

    Akwa Ibom State Government yesterday said it would soon send a bill to the House of Assembly to stop baby delivery in churches.

    The Commissioner for Health, Dr. Emem Bassey, said this during the Seventh Akwa Ibom State Council on Health meeting, organised by the Ministry of Health and non-government organisations (NGOs).

    The theme of the programme is: “Improved maternal and child health care approach.”

    Bassey urged pastors to encourage women to deliver in hospitals, instead of risking their lives by delivering under unskilled personnel.

    He said government was determined to ensure adequate use of the Primary Health Centres (PHCs) spread across the 31 local governments.

    The commissioner said there are over 360 PHCs in the state, yet people are not utilising them.

    He explained that if every woman is delivered of her baby by a qualified health personnel, maternal death will reduce.

    Bassey, who decried the attitude of Primary Health Service (PHS) workers towards work, warned that councils soon would start monitoring them.

    The Chairman of the Hospital Management Board, Sir Val Attah, thanked the commissioner for reviving the PHS.

  • Jonathan rejects State of Nation Address bill

    •Backs autonomy for local councils

    PRESIDENT Goodluck Jonathan yesterday declared the State of the Nation Address bill passed by the National Assembly and transmitted to him for assent as unconstitutional.

    Jonathan said some clauses of the bill contradict provisions of the constitution, especially Section 67.

    The President also said the bill offends the principle of separation of powers as enshrined in the constitution.

    He returned the bill and proposed some amendments to enable him sign it.

    The President, in a letter read by the Senate President, David Mark, said certain sections of the bill should be altered in line with constitutional provisions.

    He said the constitution has provided for the kind of address the National Assembly wanted in the bill.

    The President said: “I am of the opinion that the 1999 Constitution has made ample provision for the kind of address contemplated by this bill.

    ‘It would therefore amount to a duplication to enact legislation on the same subject matter.

    “This is more so as the proposed legislation seeks to circumscribe the President’s discretion regarding whether or not he should attend the joint meeting of the National Assembly, the time to present the address.

    “This is inconsistent with the doctrine of separation of powers and the letter and spirit of the constitution.”

    Jonathan insisted that bringing into force another law on the issue would amount to a duplication of legislation.

    The President said assenting to the bill would be subject to the incorporation of some amendments that would bring it in conformity with the dictates of the constitution, especially the discretion conferred on the President by Section 67 of the constitution.

    He proposed the redrafting of Clause 1 (2) to make it more flexible by substituting it to read: “The State of the Nation Address shall be delivered to a joint sitting of the National Assembly within 30 days of the commencement of the legislative year.”

    On clause 3, which empowered the National Assembly to summon the President, where he decides not to make the address, Jonathan said it should be substituted with a clause that conforms to the language of the constitution.

    According to him, the clause should rather read: “Where for any reason the president is unable to present an address in accordance with Section 1 of this Act, the President shall in writing, inform the President of the Senate and the Speaker of the House of Representatives and either designate the Vice President to present the address on his behalf or transmit to the President of the Senate and the Speaker of the House of Representatives, the text of the Address”.

    Jonathan urged the Senate to amend clause 5 to read that “The National Assembly shall have power to regulate its procedure with respect to the provisions of this Act.”

    The President asked for deletion of clause 6 as it would no longer be consisted with the proposed amendment to clause 3 above.

    The Senate last month passed the State of the Nation Bill into law.

    The law sought to mandate the President to address a joint sitting of the National Assembly on the general state of the nation once in a year.

    The President backed the National Assembly on the quest to grant local government councils financial and political autonomy.

    The Speaker of the House of Representatives, Aminu Tambuwal, said the quest for local government autonomy was not negotiable as it was the very essence of true federalism.

    Jonathan’s position was forwarded by the Secretary to the Government of the Federation (SGF), Pius Anyim.