The Nation Newspaper

Tag: job loss

  • Obasanjo okays Anchor’s policy on job loss

    •Firm partners OOPL

    Former President Olusegun Obasanjo has thrown his weight behind the Anchor Loss of Employment Insurance Scheme (AnchorLoEIS).

    Obasanjo okayed the product when Anchor Insurance Company Limited executives visited him at the Olusegun Obasanjo Presidential Library (OOPL) in Abeokuta, the Ogun State capital.

    In a statement, the company’s Head, Brand & Corporate Communications, Jamiu Osoba, said: “While introducing the members of the delegation, the General Manager, Retail and Micro Insurance, Uzoma Ofurum, introduced the product to the former president.

    ‘’Seeking to know the benefits of this unique insurance product, the former president was informed that it is developed to cushion the effect of the sudden loss of employment with the payment of salary income to policy holder for 24 months after loss of job.

    “Having been made aware of the product’s benefits, the former president thereafter endorsed AnchorLoEIS.’’

    Obasanjo said he would be in the forefront of the product’s promotion. He advised Nigerians, especially the employed to take the insurance policy to protect them against job loss.

    He urged the company to develop new products, especially policies for the elderly and unemployed.

    Meanwhile, Anchor has partnered   the OOPL Wildlife Park’s (WLP’s) “Adopt an Animal” programme by adopting a Lion tagged “Anchor Lion” in the wildlife.

    Ofurum said: “With this partnership, the company has created the opportunity to contribute to the conversion of local animal species and encourage their reproduction and preservation of wildlife, which in its stead, will further encourage local tourism.

    ‘’Obasanjo while receiving the delegation announced the plan to insure the animals in the Wildlife Park against the third party liabilities as it is essential to protect the visitors to the park from any unanticipated eventualities.

    ‘’Just in case somebody puts his hand in a lion cage or a lion breaks out. It is very important to have insurance despite all the barricades and cages we have in the park.’’

    The company’s Executive Director, Business Development & Marketing, Mr. Augustine Ebose, who led the delegation, lauded the former president for sanitising the financial industry through recapitalisation and the Local Content Act enacted during his administration.

    “The industry was undertaken by foreign underwriters on behalf of the local insurance companies due to lack of financial capacity before recapitalisation and enactment of local content law during your administration.

    “But the Local Content Act brought a rise in the industry and we are now underwriting about 75 per cent of local content. As one of the major service delivery companies in the industry, we want to thank you for this because we are your product,” Ofurum added.

  • ‘How to earn salaries after job loss ’

    ‘How to earn salaries after job loss ’

    The number of Nigerians losing their jobs daily has continued to soar with unemployment rate standing at 13.9 per cent.

    But to ensure that those who lose their jobs do not suffer financial hardship and depression, which can lead to death, the insurance industry has introduced a product, Anchor Loss of Employment Insurance (LoEIS) Scheme. With the cover, an employee can continue to receive salary for 24 months after job loss till when he or she would have found another job.

    Anchor Insurance Company Limited, the company that introduced the product with certification by the National Insurance Commission (NAICOM), last week paid claims to 120 employees, who lost their jobs suddenly last year.

    One of the beneficiaries, a former employee of Heritage Bank, Aderemi Adesibikan, said she was laid off as a result of the restructuring which took place in the bank  last December.

    According to her, she never expected the sudden job loss and was seriously devastated despite her severance package from the bank.

    Adesibikan expressed gratitude to the industry for introducing the cover that will enable her earn income in the next 24 months while searching for another job, said it was a shock absorber.

    Another beneficiary, a former employee of Zenith Bank, Gbenga Ademola, said the only regret he had was not to have insured his full salary.  He said he was, however, happy with what he insured, which would successfully help him handle his financial responsibility maximally until he gets another job.

    A former employee of UBA Plc, Eberechi Ige, also appreciated the industry for designing the product. According to her, she already had insurance culture, adding that embracing the product was not an accident.

    Anchor Insurance Company Limited General Manager, Retail, Uzoma Ofurum, while presenting the cheques, congratulated the beneficiaries for taking the wise step to safeguard their employment income against sudden job loss.

    He noted that every employee can protect themselves from market risks, adding that beyond the adverse economic state of the nation, it is expedient and wise for employees that value their self-esteem to take appropriate measures to safeguard their income through insurance covers such as LoEIS.

    He stressed that not having a salary and having one’s bills pile up without hope of any income, could be very devastating and could eventually lead to financial hardship, depression and death.

    In reality, he said the money set aside for pensions would not be easily accessible, especially where the age of the affected worker is way below the designated retirement age of the firm.

    He said since one may not be able to control what the unemployment market would be like in the future as one could take  steps today to control one’s income.

    Anchor Insurance Managing Director, Mayowa Adeduro, said the preservation of life and livelihood is the greatest pre-occupation of man since the creator breathed life into man.

    He said: “Income is the building block of our financial life, which helps to handle financial responsibilities and achieve desired dreams. This means man must work every day to ensure there is consistent income for sustenance of livelihood.

    “Many firms and organisations were faced with the harsh economic challenges, which were beyond their control; hence, losing job or getting laid off could happen with little or no warning.  It’s unfortunate that this very common occurrence can affect anyone at any time.

    “It is a fact that people do become financially disabled once they lose their employment, and a long-term financial disability does bring serious financial and emotional consequences, especially for a bread-winner with chains of responsibilities.”

    He explained that the product was developed in response to the yearnings of Nigerians for a product that would meet their needs and addresses their challenges.

    “The product enjoys adequate technical support from Reinsurance companies and an Actuarial firm.  Anchor LoEIS was approved in 2015 by NAICOM. The scheme is the newest and latest solution to protect employment income. It is also a safety net, shock absorber or cushion for the harsh effect of a sudden loss of job.  In the midst of economic recession and uncertainties inherent in our environment, the product is the most preferred insurance cover for workers,” he added.

  • CBN’s policy ‘ll lead to job loss, says MAN

    The Manufacturers Association of Nigeria (MAN)  has warned of massive job loss if some of the policies of the Central Bank are not re-viewed.

    The group said the new foreign exchange guidelines of the apex bank have negatively affected productivity and  increased the cost of manufacturing.

    Its President, Dr. Frank Jacobs, lamented that manufacturers are experiencing difficulties in importing raw materials, warning that if the situation is not addressed quickly, it would lead to factory closures and loss of jobs.

    He said data released by the National Bureau of Statistics (NBS), CBN and the Organisation of Petroleum Exporting Countries (OPEC), have learnt credence to this fact.

    Praising part of the CBN’s policy on the 41 items barred from foreign exchange allocation, he said: “MAN has analysed the items into 680 items based on their respective sectoral and sub-sectoral groups and submitted a comprehensive list of 105 raw materials which are products of rigorous consultations with all sub-sectors of the manufacturing sector with their respective HS Codes. The association further listed 93 finished products that are produced locally with sufficient capacity which should be added to the 41 items.”

    He said while the CBN Governor, Mr. Godwin Emefiele, agreed to include the 93 items of finished products on the list, he, however, declined to consider the request to remove essential raw materials that are not available locally from the list.

    He said the CBN boss cited declining foreign reserves of the country, continuous fall in oil prices, and the banks inability to honour the foreign exchange requirement of manufacturers who import raw materials as justification for their insistence on the forex policy.

    On MAN’s recommendation, the association asked the CBN to remove raw materials that are not available locally from the list of items  for foreign exchange and allow reasonable time for affected manufacturers to embark on backward integration process before re-listing the affected raw materials. The group also asked for a policy statement that will assure the private sector of policy consistency, backed up with appropriate gazette that will phase the implementation of the policy over  time to safeguard the huge capital implementation associated with manufacturing.

    Furthermore, MAN urged the CBN to take action that would facilitate the disbursement of the real sector fund, saying no loan had been granted under this window despite the huge application for it. MAN, in addition, wanted the apex bank to make operational the Development Bank of Nigeria launched early in the year by former President Goodluck Jonathan and also adopt appropriate mix of monetary instruments to promote reduction in lending rates to single digit and effectively manage the duo of exchange and inflation rates.

    The MAN chief argued that if genuine cases presented by the association were not given some level of consideration it may create more socio-economic problems such as unemployment and crime arising from the closure of factories.

    “If the productive sector continues to find it difficult to procure necessary raw materials and spare parts within the next few weeks closure and retrenchment may be become inevitable,” he said.

  • ‘Confab’s position on budget may lead to job loss’

    ‘Confab’s position on budget may lead to job loss’

    The recommendation of delegates at the on-going National Conference that the government should be shut in case of a delay in signing the budget by the President, may result in massive lay-off of workers, the Executive Director, African Heritage Institution (AfriHeritage), Dr. Ifediora Amobi,  has warned.

    He said a such shut is similar to a government strike, where provision of social services cease over a period of time, adding that the result is that payment of salaries will be  delayed, government programmes and projects will be disrupted (particularly in health, education and  power) with dire consequences for people who are dependent on these programmes. Also, financing gaps are created in critical sectors such as Small and Medium Scale Enterprises (SMEs), small scale farm projects, and others.

    The  economist lamented that it is wrong to make the average Nigerians pay for the inadequacies, and to a large extent, the incompetence of those in the legislative and executive arms of government who have refused to do their work efficiently.

    Amobi explained that the government shutdown is a situation created where the executive and the legislative arms of government cannot reach a compromise when it comes to signing the nation’s annual budget, thus creating a ‘funding gap’.

    “During the funding gap period, the government shuts down because there is no money to pay workers, to provide services, and so on,” he said.

    On the economic implications of the action, the AfriHeritage boss noted that the economic cost could be in billions of naira depending on the duration of the shutdown, reduction in the Gross  Domestic Product (GDP) by up to two per cent or more, job losses/layoffs as well as sharp cutbacks in hiring practices, lost man-days nationwide, with very high productivity losses, significant drop in consumer, business and investor confidence and negative image for Nigeria because it will affect visa issuing and passport services.

    He urged the delegates not to copy verbatim the situation in the United States (US) where it happened recently, saying the US constitution provides for an Anti-deficiency Act that requires the Federal Government to begin a shutdown of the affected activities if an interim or full-year appropriation is not enacted into law.

    “My recommendation is that we should not copy the US in toto as their practice also has profound economic consequences. “The 2013 shutdown cost the US government over $24 billion (averaging $160 million a day). With our present monitored system, Nigeria losses an average of $10.9 billion a year to oil theft.

    “Just imagine the grand loss during a shutdown period where the oil sector will no longer be monitored.

    “My overall position Is that the National Conference revisit their earlier rejected amendment to Section 59 (3) of the 1999 Constitution which stated that In the event that the budget is not approved by the 2nd of January, government should operate on the basis of 75 per cent of previous year’s budget as an interim measure to avoid a shut down,” he said.

    Delegates at the National Conference had agreed that to go forward, Appropriation Bills must be presented to the National Assembly on or before September 30 of every year, while the National Assembly must pass the bill within two months for Presidential Assent in December.

    The rationale is to stop any expenditure by the government in the event of a delay in the passage of the budget.