The Nation Newspaper

Tag: delayed

  • Why finance houses’ planned reform is delayed

    What is delaying the planned reforms for finance houses? It is being delayed by bureaucracy, The Nation has learnt.

    An insider at the Finance Houses Association of Nigeria (FHAN) said despite securing stakeholders’approvals in critical areas, especially in the drive to raise capital base from N20 million to about N100 million, the other elements are not yet in place.

    The source said stakeholders expect the reforms to be unfolded by the CBN before the end of this quarter. It is also expected that the reforms will expand the funding structure of the subsector to allow new investors into it.

    Findings showed that the CBN Board of Governors will release new prudential guidelines for the subsector that also include raising the capital base.

    Other policy issues, such as the appointment of Managing Directors will form part of the ongoing reforms in the subsector.

    The source said CBN is also considering developing a regulatory framework that will govern finance lease practice, institutionalise a “funding pool” to stimulate lending in the sub-sector and structure programme to address the subsector’s challenges.

    Other pending issues, such as withdrawal of licences of 47 finance houses whose liquidity were called to question last May, and funding for the subsector are also being looked into. The source said progress is being made now, unlike before when nothing was happening in the subsector.

    In a statement, FHAN President Samuel Durojaye said the reforms would transform the sub-sector to enable it to play increasing role in the financing value chain.

    He urged FHAN members to support CBN’s efforts at strengthening the regulatory environment by regular and timely rendering of statutory returns and reports, and the renewal of their licences yearly.

    Unlike banks, finance companies are not allowed to accept deposits. This means they can only source funds from shareholders, private equity companies, development finance institutions and other institutional investors.

     

     

     

     

     

     

  • ‘Why transfer window is delayed’

    The hope of retirees to transfer their retirement savings account from one Pension Fund Administrator (PFA) to another may still take sometime, The Nation has learnt.

    The delay is as a result of the inability of the National Pension Commission (PenCom) to conclude work on Information and Technology (IT) applications.

    A source said PenCom is battling to settle some problems surrounding the initiative.

    Head, Research and Corporate Strategy PenCom, Dr Farouk Aminu, confirmed this, saying the Commission is working on the transfer window problems.

    He told The Nation that the framework has been issued to operators for implementation, adding , however, that work was still ongoing on the supporting IT application that would drive the initiative.

    To ensure seamless operation of the initiative, PenCom mandated PFAs and Pension Fund Custodians (PFCs) to deploy IT infrastructure for the job, saying such this must have adequate storage and retrieval capability for about 10 years.

    He explained that Section 11 (2) of the Pension Reform Act (PRA) 2004 specifies that an employee may not, more than once in a year, transfer the RSA from one PFA to another without any reason.

    He added that a review of the regulation would address multiple transfers of RSAs in a year.

    PenCom said the inability of any PFA to provide service to RSA holders will attract a fine of N100,000 and N10,000 for every month of violation.

    Similarly, a monthly sanction of N100,000 per RSA shall be imposed on any PFA who violates the law.

  • Election materials delayed in Ilaje, says Oke

    The Ondo State governorship elections went peacefully in Ilaje local government area yesterday as people of the area trooped out in their numbers to elect their choice candidate in the poll.

    The electorate turned out enmasse and stayed back at various polling units after accreditation to participate in the actual voting.

    However, there were no security men at many of the polling units, especially in the riverine areas, a situation which created tension in some of the polling units.

    The Peoples Democratic Party (PDP) governorship candidate, Chief Olusola Oke, after casting his vote at his Unit 005 at Ilogho in Ugbo III Ward in the Ilaje Council area, expressed disappointment at the late arrival of Independent National Electoral Commission (INEC) officials and materials for the poll in the council area.

    Oke said, this was responsible for lateness in starting the accreditation and voting in many parts of the council.

    He lamented that voting did not take place in some units in the Ugbo Ward I and other areas owing to absence of polling officials.

    The PDP candidate, said although INEC Chairman, Professor Attahiru Jega, meant well in the bid to transform the nation’s electoral process, there were some bad eggs in the electoral body that needed to be removed for elections to be perfect.

    He lamented that some registered voters were disenfranchised as their names could not be found on the INEC register.