Tag: Private

  • Why private refineries are yet to begin operation

    Finance is one of the major reasons why the 18 refineries licensed in 2002 are yet to take off ,The Nation has learnt. Financial institutions do not want to provide long-term funding for operators in the oil and gas industry. There is a rigid mode of repayment of loans, besides.

    Industry observers said the failure of the refineries to come on stream, 14 years after, has further worsened the fuel situation in Nigeria. The Chief Executive Officer, Jehata Nigeria Limited (owners of Abuja Power Station), Mr. Jameel Jammah, said technical deficiencies and huge capital are some of the problems facing owners of private and public refineries globally.

    He said owners of private refineries are worse hit, because they do not have the money required to set up refineries. Jameel said dearth of skills and capital are some of the problems besetting the growth of private refineries.

    He said: “This explains why it is difficult for the 18 privately-owned refineries licensed by the Federal Government to take  off, 14 years after they were approved. Accessibility to credit facility is poor in Nigeria, coupled with lack of required manpower. When banks refuse to lend to firms that won the bids for the establishment, there is nothing they could do.

    “The demands from the banks, which want to fund the projects, are outrageous. For instance, in a situation whereby banks requested that people should repay the loans within five years, as against a period of say 10 to 15 years, there is a problem. Where did the banks want people to get the money to pay back the loans, which they were given to finance the building of the refineries within such a short period?’’.

    According to him, refineries’ operation is in stages, noting that both the existing and prospective owners of refineries globally pass though the stages. Jammel listed the stages to include getting and clearing the site for the project, carrying out an Environmental Impact Assessment (EIA) programme on the project, knowing the  capacity or output of the refineries, profit projection, let say in the next five years,  and others

    “I  can frankly tell you that many banks refused to lend money to us, when we conceived and started the building of our modular refinery in Abuja. The problem is the same all over the world. Nobody is ready to commit funds to a project that one is not sure of its immediate returns,’’he said.

    Also, the former President, International Association of Energy Economists (AIEE), Prof Adeola Akinnisiju, said a lot of things come into play when the issue of owning a refinery (whether traditional or modular) crops up.

  • Suit querying N213b loan to private power firms stalled

    Justice Adeniyi Ademola of the Federal High Court, Abuja, has declined a suit querying the N213 billion loan handed by the Federal Government to privatised electricity companies under the Nigeria Electricity Market Stabilisation Facility (NEMSF).

    The plaintiff, Baribefi Tebira, sought to restrain the Central Bank of Nigeria (CBN) from giving out the money, from which he said about N57.79 billion had been disbursed as at mid-February.

    Tebira, a lawyer, contended among others, that the arrangement was fraudulent and meant to swindle the country. Also, he noted that the facility is a duplication of an earlier one – the N300 billion Power and Aviation Intervention Fund (PAIF) – created by the Federal Government in 2013 and from which N11.628 billion was disbursed by June 2013.

    He argued that the CBN lacked the powers, under its establishment law (particularly, Section 34(c) and (d) of the CBN Act 2004), to create a loan facility of 10 years to private companies at 10 per cent.

    The plaintiff urged the court to declare that the loan paid from the NEMSF by the CBN to the privatised electricity companies, which were privatised under the Public Enterprises (Privatisation and Commercialisation) Act was illegal and contrary to public policy.

    Tebira sought an order of perpetual injunction restraining the CBN from further disbursing any fund by whatever name, whether NEMSF or other, to the privatised electricity generating and distribution companies under the Public Enterprises (Privatisation and Commercialisation) Act.

    He prayed for an order directing the CBN to terminate and recall such facilities granted to the privatised  companies under the NEMSF.

    Defendants in the suit were the CBN, Ministry of Finance, Ministry of Power, Ministry of Petroleum Resources and the attorney general of the federation (AGF).

    The plaintiff argued, in a supporting affidavit, that having been privatised and the companies having increased tariffs more than once and directed customers to make down payment for meters, there was no justification for the Fed Government to further hand out public funds to them.

    “As much as government owns shares in these companies, majority of the shares in the companies have been bought by private investors, who before buying them, demonstrated capacity to finance the project as a private commercial concern.

    “I am surprised that the same private investors, after demonstrating they can acquire such shares are applying for loans under the facility created by the CBN over projects they claimed to be able to finance, which was a criteria for winning the bid process,” Tebira said.

    He argued that even if such loan should be granted, there was no need creating another one as the better organised N300 billion PAIF, created in 2013, and from which only over N11 billion had been accessed, was not yet exhausted.

    “I am aware that the PAIF was created for the same purpose and the facility was disbursed under stringent measures, using the Bank of Industry (BOI) as the authorised deposit money bank and the African Finance Corporation (AFC) as the technical adviser.

    “The NEMSF, unlike the PAIF, was created with relaxed rules, no regulators and technical partners, with 14 private commercial banks acting as deposit money banks as disbursing banks.

    “The CBN, as a defacti bank, can indirectly give loans and advances for a maximum period of one year at a minimum rate of interest, which should not be less that one per cent above the bank’s minimum rediscount rate. Banks minimum rediscount rate as at December 2014 was 13 per cent.

    “The first defendant (CBN) can only give advances and credit facilities for a maximum period of one year as against the 10 years the first defendant is advancing credit facilities to the companies.

    “The process is fraudulent. The process demonstrates a colossal looting of the treasury in the guise of formulating bogus sector-driven monetary and banking policies aimed at revitalising the power sector,” Tebira said.

  • Low investor confidence worries private sector

    The confidence level of investors and private sector operators  in the economy is waning, the Director-General of Lagos Chamber of Commerce and Industry (LCCI), Mr. Muda Yusuf, has said.

    Speaking with The Nation, he said except urgent and decisive action was taken, with direction given to the economy, investors will shy away from the economy and this will spell doom for the nation.

    While commending the purported truce between the executive and legislature on the budget, Yusuf said it is coming almost late, with the better part of the year gone.

    While commending the Town Hall Meetings by the government, Yusuf regretted that it was not inclusive.

    “We learnt traditional rulers, youths and market women were present, but we wondered how they missed out on the Central Bank of Nigeria whose Foreign Exchange (forex) policy is crippling the Organised Private Sector (OPS) and manufacturers,” he said.

    The LCCI helmsman said, for instance, that some manufacturers are currently having issues of credibility and integrity with their suppliers abroad because of challenges of remittances as a result of CBN’s policy.

    He despite this, government organised a Town hall meeting without inviting CBN. “We expected an all-inclusive participation with entrepreneurs, investors, Nigerian National Petroleum Corporation (NNPC) and members of the private sector to make it more robust,” Yusuf pointed out.

     

  • DPR denies withdrawing private licences

    DPR denies withdrawing private licences

    The Department of Petroleum Resources (DPR) has denied withdrawing licences for private refineries.

    The DPR, in a statement yesterday, said: “In line with our commitment to entrench transparency in oil and gas regulation, we wish to make the following observations about private refineries: There are three stages of licensing for establishment of private refineries in Nigeria namely; Licence to Establish (LTE), Approval to Construct (ATC) and Licence to Operate (LTO).

    “DPR granted LTE to 21 companies with a validity period of 18 months in 2002. In 2004, 17 of the earlier LTE were granted ATC for a 24-month validity period.”

    The department said in 2007, it reviewed the existing guidelines and a new guiding document, “Guidelines for the Establishment of Hydrocarbon Processing Plants in Nigeria”, was introduced to ensure that only committed investors were licensed.

    Based on these guidelines, there were 25 private refinery licences granted to companies with 21 in the Licence to Establish (LTE) category, while four in the Approval to Construct (ATC) category, the statement said.

    The DPR added that three of the 25 licensed companies were billed to construct conventional stick-build plants and 22 to construct modular units with a proposed combined refining capacity of 1,429,000 barrels per day (bpd).

    “The public and stakeholders are assured that DPR has not withdrawn the licence of any private refinery. Rather, the department is in alignment with government’s aspiration of improving Nigeria’s refining capacity by strengthening its oversight function of the petroleum sector in Nigeria,” it said.

  • IPMAN kicks as private depots sell petrol for N102/litre

    IPMAN kicks as private depots sell petrol for N102/litre

    Independent Petroleum Marketers of Nigeria (IPMAN) yesterday raised a fresh alarm that private depot owners sold Premium Motor Spirit (PMS) for N102 per litre.

    Following the new price regime which the Petroleum Products Pricing Regulatory Agency (PPPRA) activated last month, depots were expected to sell the product to marketers at N77 per litre.

    Besides, all Nigerian National Petroleum Corporation (NNPC) affiliate petrol stations were supposed to sell petrol at N86 per litre, while independent marketers were expected to sell for N86.50 per litre.

    But IPMAN Vice Chairman, Alhaji Abubakar Dankingari, who spoke on phone yesterday, said private depot owners are selling fuel for N102 per litre.

    According to him, members of the association simply refused to patronise them because of the obvious colossal losses they would incur.

    He lamented that this situation  compelled the marketers to resort to buying from the corporation, where the product is evidently over-subscribed.

    Dankingari, who revealed that his members had over 7,000 tickets pending with the NNPC for over three months now, lamented that his members had no petrol to sell.

    He said: “Up till now, independent marketers are not getting fuel. We have over 7,000 tickets under NNPC . Up till now, we haven’t loaded it for almost three months now. The private depots are even selling N102 per litre to marketers now.”

    He however noted that the situation had forced some  members that ventured to patronise the private depots to sell above the official pump price.

    He said:“Our members in the far north and south if the go to the depots there is always no fuel for them to buy. They have paid at NNPC where they are expected to get it for N77 but there is no order and if they go to private depots, it is N102.

    “If you sell it at N86.50 automatically you are going to lose a lot of money. That is the reason why some of our members are selling above government approved pump price. They are those  who buy from the private depots. Even now, I called one of the directors in NNPC, I told him about the situation and he said he is aware. “

  • IYANYA: I’VE LEARNT TO KEEP MY RELATIONSHIP PRIVATE

    IYANYA: I’VE LEARNT TO KEEP MY RELATIONSHIP PRIVATE

    Nigerian superstar, Iyanya Mbuk, might come across as a controversial artiste, but beneath all the glamour and the demands of the entertainment world lies an easy-going personality. OVWE MEDEME catches up with him at the video shoot of the tribute song, Mama Oyoyo, where he opens up about his love life, career, future plans, retirement and other issues.

    Why did you accept to be a part of this tribute song?

    First of all, I want to say big ups to the producers for choosing me to be a part of the song as one of the artistes to pass this strong message across. It is a good thing to recognise our mothers. It is a good thing to always recognise, appreciate and talk about the virtues of our mothers in a song. I’m happy being a part of this.

    How challenging was it writing your lines and being a part of it?

    I would say it was just a normal process. I was just being natural in the song because it is a mother’s song and it would be unfair to say that we have come this far without our mothers. So I just went back to nursery rhymes just to make sure that even the kids can relate to the song.

    Did the experience of losing your mother come to bear in the song?

    Yes it did. That also played a role in how I performed in the song. I have a mother’s song too and I’m going to shoot a video for it. But being part of this was the best thing that happened to me. I also would like to say thank you to my mom and all the mothers out there. As I said earlier, we would be nowhere without them.

    What are your plans for the year?

    First of all, I’m thankful to God for his grace that has kept me. It has not been easy, I won’t lie to you. From Project Fame to present day, the challenges have been there. It’s been awesome too because after every challenge, after I conquer every challenge, I move to greater heights. I’m thankful to God for sparing me. I’m thankful to my manager and to my management, Triple MG. We just keep doing our best to see that we give our fans what they deserve.

    What was that one challenge that almost made you quit music?

    To be honest with you, nothing has really given me a reason to give up because I am doing this first of all for the passion that I have. I’m doing it for my family that I lost. It is my own way of honouring them wherever they are. I’m not giving this up for anything. Instead, I would retire. I will get to a point where I would just like to chill and do something else.

    What are some of the things you would like to do?

    When I say I would retire, it is not anytime soon. I’m talking about the later part of my life. I have a lot more albums to drop. But definitely I would be going into business. I can’t reveal the nature of the businesses I would be doing but be sure that real estate would be a part of it. It is just awesome. I feel like it’s the only thing that can keep a famous person going.

    What should your fans expect from you this year?

    I would be dropping a lot of videos, collaborations and the likes.

    Any plans to get married this year? I am making plans to do all that but I don’t think I would want people to know anything about it.

    Is it that you would miss the single life?

    It is not that I would miss the single life. But the truth is that once it gets to the hands of the media, we both lose it. But it is not your fault because you are just doing your job. But then, it just takes a negative effect on the relationship. It puts us on unnecessary pressure. It gives the people who don’t even have the right to talk, an opportunity to interfere even when they don’t know the truth about what is going on. So I’ve learnt to keep my relationship private and to give the people more music. That is what they know me for first of all. I don’t let the other things cloud the music that I’m known for.

    Are you talking in the light of your past experience?

    Yes, I’m talking from experience. It just doesn’t make any sense. Once you are famous and you put your relationship out there, it is gone.

    Would you trade the fame for anything?

    Nothing! There’s nothing that I would trade my fame for.

    Presently, what is the situation of things at Triple MG?

    Triple MG is doing very well. We have Tekno, we have Selebobo and other artistes and they are all excelling. I’m doing well too. We just have plans to make sure that we can achieve excellence and drop music to impress the people that believe in us. I’m talking about our fans. We are all working hard.

    What defines your sense of style?

    I just like to be simple in my appearance.

    Are you still into the fitness game?

    I do it a lot. It is a passion. I used to just do it for the fun of it, but now it has gone beyond that. It is more than a passion. I get paid to do it. It is business too.

  • ‘Private sector partnership can boost development in local councils’

    ‘Private sector partnership can boost development in local councils’

    Mrs. Toyin Caxton-Martins the Executive Secretary, Ikoyi Obalende Local Council Development Area holds the view and very strongly too that private sector partnership can boost the socio-economic development in local councils if well harnessed.

    Speaking in an interview with The Nation recently she said the idea of partnership between the local communities and the organised private sector is something that can spur development utimately.

    “The local community not necessarily in terms of the residents or citizens as individuals, but organisations and companies that are resident here, that we are host to and also high networth individuals for them to be able to partner with the local government to be able to achieve its aim in bringing infrastructural, social and various kinds of development to the local government. So if we call all these organisations together in one place for example, we are able to put before them our own request, seek also their own input as to how we can move the local government forward.”

    Upbeat, she said: “If you look round the various LGs, you will begin to see the something like welcome to Ikoyi Obalende etc. This is the beginning of the type of development. There are numbers that the community will be able to call the local government on and make suggestions or make request. In order for us as local government to be able to move at the same pace as the governor, we need the partnership and oneness of those in the community particularly the organisations and companies to come together. There is a financial implication to all of these. In order to be able to achieve some of the goals that we at the local government have set for ourselves that we cannot possibly meet on our own budget, their own organisation will understand what we are trying to do may feel that they should be able to intervene in them.”

    While noting that the Ikoyi/Obalende already generates a modest of revenue, the council boss however assured that with more private sector involvement, the council’s financial profile will definitely rise.

    “These areas are under the LG and we are doing it but with the partnership, it will be rapid. The whole idea is for us to be able to keep pace with what his Excellency has for the state through the community and by extension the local council. I believe that this local government should be the flagship local government of the state.”

    Expatiating, she said: “Although it is not the only one but one of those that people call highbrow area. When you drive through, it has to change. That Obalende is not the high network part of the LCDA does not mean that it should be left behind. In fact I am concentrating 60-40 per cent attention, to ensure it rises. We are trying to attract everybody.”

  • IBB advocates private investment in education

    To address the decay in Nigeria’s education sector, former Military President, General Ibrahim Babangida has advocated for more private investment in education.

    He said private investment would revamp the country’s education, noting that it should not be left in the hands of government alone.

    Babangida made this call at the 20th anniversary of the El-Amin International School, Minna founded by his late wife, Maryam as part of her contribution to the development of the education sector in the country.

    Babangida said her passion for the overall well being of women and girls informed her decision to establish the school.

    He said with the collaboration of government and private investors, Nigeria’s education system would be one of the best in the world.

    Also speaking, Executive Director of the School, Dr. Mohammed Babangida, said the school is living the vision of the founder.  He described it as the most vibrant and outstanding private school in the north.

    “El-Amin runs both national and international examinations such as WAEC, NECO, Edexel and Cambridge. It has over the years churned out students that have today excelled in their various academic and professional endeavors.”

     

  • Invest in health sector, private firms urged

    Private business organisations have been urged to invest in the health sector as the responsibility of a virile medicare cannot be left to the government alone.

    The Nigerian Breweries (NB)  Plc Human Resources Director, Victor Famuyibo, who made the plea during the inauguration of Accident and Emergency (A and E) Centre of Ikorodu General Hospital and a renovated Paediatric Ward of Agbala Health Centre, Ikorodu, said there was need for collaboration between the government and the private sector.

    The centres were donated by the Heneiken Africa Foundation (HAF) in collaboration with NB.

    His words: “The population is growing and there is need for the private sector to join hands with the government. This is to reduce mortality rate to the barest minimum by investing in the health sector.”

    According to him, Ikorodu has assumed a larger setting as a result of the newly built road infrastructure.

    “So many citizens, who ordinarily had lived their lives in the greater cities of Lagos, have moved to Ikorodu because of the development the community is witnessing,” he said.

    Accidents, he said,  were  predicted to increase due to the new road, adding: “That is the reason for this 12- bedded accident and emergency centre to curb the menace of accident.”

    He continued: “For us it is money well spent and we are sure that value will be derived from this equipment.”

    Permanent Secretary, Lagos Ministry of Health, Dr Modele Osunkiyesi, thanked the HAF and NB for their laudable effort, urging other private companies to support the sector.

    About the importance of the centre, she said, the prevalence of vehicular accidents has increased due to the opening of the Ikorodu road and the entry of people into the town.

    According to her, 13 per cent of the 13, 458 and 7, 914 cases managed at the Casualty Department in 2014 and January to August 2015 respectively, were due to road traffic accidents.

    She continued: “The face of optimal pre- hospital cares provided by Lagos State Ambulance Service fleet and the inadequacy of the general hospital casualty department, which hitherto managed cases became apparent.”

    Osunkiyesi thanked the HAF and NB on behalf of the management and residents of Ikorodu, for the 12- bed accident and emergency centre and the rehabilitation of the Agbala paediatrics centre.

    Her words: “The only purpose built Accident and Emergency Centre before this was the 20- bed facility at the Toll gate constructed and equipped by the state in Lagos West Senatorial District.”

  • Why private schools pay peanuts

    Why private schools pay peanuts

    The minimum wage may be N19,000, but teachers, especially those working in low-cost private schools earn far less.  The result:  high staff turnover. KOFOWOROLA BELO-OSAGIE reports on how teachers struggle to make ends meet, while proprietors fight to keep them.

     

    Last session, Ebunoluwa Marvins (not real name), a widow and mother of three, taught at a private school in Agege, Lagos State, where she was paid N15,000 monthly – about N4,000 shy of the Federal Government’s minimum wage.  It was not easy to make ends meet with that amount of money.  She participated in the extra lessons organised by the school to earn extra income.  However, the little she earned did not make much difference.  Before her husband’s death, less than two years ago, the extra income was used to pay tuition fees of her two older sons (they enjoyed 50 per cent scholarship). After his death, though they were placed on full scholarship, the money was grossly inadequate.

    Mrs Marvins thought relocating to an accommodation closer to the school would help; she sought help from a friend on the matter.  The friend was shocked to learn that she earns a measly N15,000 compared to her own salary of N100,000, which she thought was insufficient.

    She advised the teacher to change schools instead, which she was able to do before the start of the 2015/2016 academic session.  Her new school now pays her close to N100,000 for salary and extra lessons.

    “I am so happy.  I was afraid to change school because of the scholarship my children enjoy.  But the money was not keeping us.  We had to depend on the goodwill of people to give us food and money,” she said.

    Mrs Marvins is one of thousands of teachers working in low-cost private schools and earning far less than the minimum wage.

    Developing Effective Private Education in Nigeria (DEEPEN), an initiative of the Department for International Development (DFID), classifies low-cost private schools as schools that charge between N1,000 to N25,000 per session.  Many teachers in such schools, especially those in rural or slum areas of Lagos State, do not earn up to N15,000.  Investigations revealed that salaries in the schools range from N7,000 to N30,000 in extreme cases for head teachers and principals.

    Ms Melody Isaac teaches in Cas Marybon School, which is around Agbado-Ijaiye, a suburb of Lagos.  Though she declined to say exactly what she earns, she told The Nation it is less than N15,000.

    “Teachers get paid between N10,000 and N20,000. I don’t earn up to N15,000,” she said.

    Raheem Ayomide, who teaches at Praise Way College at Oke Odo, Lagos, has negotiated a new salary with his boss, so he may earn up to N18,000 if the proprietor keeps to his promise.

    “In my school, I don’t think any teacher is paid up to N20,000. I took a break from the school to complete my education at the university, some months ago. But when I was working my boss was paying me N15,000 and you know in a private secondary school you take more than two classes and subjects. When I came back there were space for me. I was expecting more than N15,000.  But we discussed and he told me that the highest paid teachers get N20,000 so he said he would increase my pay but not up to N20,000.  He said he would pay me N18,000 and I will take three subjects.  The grace I have is that the school is not far from my house.  It is just on the next street so, no extra transport fares for me; just a five-minute walk,” said Ayomide.

    According to a research by DEEPEN, the poor salaries paid by low-cost private schools make teachers seek greener pasture elsewhere, resulting in high teacher turnover in the schools.  Many proprietors confirmed this problem, saying they are forced to run around looking for teachers at the beginning of each term.

    However, they attributed the poor salaries they pay to the nature of the schools they run, which cater for the educational needs of low income families seeking better quality education than public schools offer.

    Mrs Esther Dada, president, Association for Formidable Education Development (AFED), said high teacher attrition is a cross low-cost private schools owners have to bear because of the low salaries they pay.

    “We have exodus of teachers from time to time, and mostly we low-cost schools because of the salary we are paying. When we train our teachers, because when they come in newly, they don’t know anything; they are raw. Hence, we give them in-service training and we train them from time to time to fulfill our purpose. But the moment they begin to get the drift of teaching and learning, they look for greener pastures,” she said.

    Mrs Sola Ogunfowora, proprietor of Prescal Montessori School, Matogun, could not attract a new head teacher to her school because of poor pay.

    “I had promised to pay N12,000 and she told me she would come.  But I did not see her.  Challenge of teachers leaving is too much. They want to collect money without working. Once you employ them within two to three months, they are getting ready to leave and if you ask why they say the money is not enough even if the amount was decided before employment,” she said in frustration.

    Her experience is not really different from that of Deacon Abiodun Owolana, who runs Funbi Secondary School, Ajangbadi. He accused teachers of not being patient to reap the fruit of long service award.

    He said: “As we are talking now, we are short of teachers.  Some of the teachers likely don’t understand what they are doing.  If you are in a school a year, two years, there are some benefits you should have if you are a long time staff in my school.  In my school, I told them if you are up to three years and you want to go in good condition, you are entitled to N50,000 when you are going.  But  if I am paying you N10,000 and a neighbouring school offers N12,000, you forget about all those things and jump out because of N12,000.”

    Mrs Dada, who runs Peacock School, in Ikorodu and Amuwo Odofin, however, noted that low- cost proprietors pay poorly because they charge low fees.

    “In AFED schools, the minimum school fees is N5,000 – except for Epe – where they charge N3,000.  Even at that, they are even begging them to come to school,” she said.

    In line with those charges, Mrs Dada said she pays between N8,000 and N30,000 to her teachers.

    “Some of the teachers, depending on the environment, earn N8,000; some earn N10,000. In my school in Amuwo, I have a graduate who is the head teacher and I was giving her N25,000.  Now, she is asking for N30,000 and the number of children has dropped.  The same thing with Ikorodu.  I have a graduate there who majored in English.  She is asking for N25,000.  We were paying her N20,000 before,” she said.

    Mrs Ogunfowora said she charges between N5,000 (for nursery) and N7,500 (for upper primary) as fees; while she pays teachers between N7,000 and N12,000.  At Deacon Owolana’s school, the minimum tuition fee is N4,000 for nursery; while his secondary school charges N15,000.  He said he pays teachers between N15,000 and N25,000.  Their responses mirror teachers’ salaries among most low-cost private schools.

    Regularity of the meagre salary is another issue in these schools.  Ayomide said it is not unusual to experience delay in payment.  He added that some schools even owe teachers.

    “A lot of schools, 80 percent of schools, don’t normally pay on time. They owe teachers two to three months salary and they start giving different excuses,” he said.

    Melody also said non-payment of the meagre salaries contributes to why teachers leave schools.

    Explaining why some proprietors may delay salaries, Mrs Temitope Osibosi, National Treasurer, AFED, and proprietor of Santoi Nursery and Primary School, Ogudu, said many parents do not pay fees on time.

    Her claim was confirmed by other proprietors who put the percentage of parents that pay school fees in full at between 45 and 50 per cent.

    “About 50 per cent of my parents pay in full.  Some carry over; even I have first-term carry over from last session in my school.  Those children are still in my school.  Their father lost his job but I cannot send them away – hoping that the man will get a job,” she said.

    Deacon Owolana said with only 45 per cent fee compliance, paying salaries on time is sometimes difficult, though he tries to avoid delays.

    “At times, we pay through our nose. It has not been easy. There was a term, after I paid salaries I was left with N50.00 as the school owner.  There are a lot of challenges we face.

    “I pay salaries in full.  If the money is not enough to pay all the staff at a time, maybe I will the pay the primary section first, then the secondary section,” he said.

    To augment their poor salaries, many teachers organise extra lessons for pupils and bill parents for it.  Ayomide said lesson fees provide teachers in low-cost private schools a critical amount which boosts their incomes.

    He said: “In my school we have extra lesson from 4-6pm.  Parents who really want their children to participate will pay so the school does not really interfere. Although we have school lesson from 2 -4pm, which are paid with the school fees, we do our own from 4 to 6pm.  If I am to take a student for two hours they will pay N2,000 at the least.  For the lesson outside, I pick Mondays, Wednesdays and Fridays which is three days in a week.  If at all they pay it will be N5,000 per month. One thing I know is that the parent will see the impact of my teaching on the children. Adding all the money it probably gets to N30,000 or N40,000 which really increases our income before the main salary comes in.”

    Mrs Marvins agreed with him.  “Before my husband’s death, I used to take a young girl for extra lesson and earned N15,000 monthly.  It really used to help me,” she said.

    Melody said she augments her N15,000 salary in this way.

    “If you have about 20 students in a class, we urge the parents to allow them do extra lesson. They pay N700 per month and the proprietress gets nothing from it. It is between the teacher and the students,” she said.

    Despite paying low salaries, some low-cost private schools are able to retain teachers better than others.  The Nation gathered that proprietors that gave teachers free hand to earn extra income through extra lessons were more likely to retain their teachers.

    Mrs Dada, who said her head teacher has stayed for about 15 years, said she allows teachers to use the school for extra lessons.

    “Most of the time, we allow them to go for lesson money.  Like I did in my place, evening lessons 4-6pm, I give them free hand to operate.  They use the school.  I don’t bother about that one.  I want them to take care of themselves.  That would augment whatever I pay them,” she said.

    Mr Bawo Ayeseteminikan, Ken Ade Private School, Makoko, Yaba, said he last employed a teacher three years ago because of his favourable policies.

    “My school has been in existence for 25 years and I am proud to say I do not owe any of my teachers and they have no reason to look elsewhere for work. Rather, we have more teachers looking for work but I told them no.  The last teacher I employed was three years ago and I have teachers who have been with me for the past 17 years. The teachers offer lesson and I don’t collect money from them and it enhances their decision not to leave my school because I discovered those earning “N15,000 or N25,000 and adds it to their salary. And where we have more than 25 students doing lesson, they pay at least N1,000 per week. Teachers leave other schools because most of the proprietors don’t have a way of paying them on time to retain them,” he said.