The Nation Newspaper

Tag: remittances

  • Deepening remittances through sport

    Were you at Campos mini stadium in Lagos when Peter Rufai former Super Eagles former goalie and captain rolled back the years and stopped some penalty kicks? If you were not there, you have missed vintage Rufai. I am sure during his active years he did not show so much enthusiasm! May be because the environment was relax and friendly.

    Rufai actually stopped several penalty kicks which were taken by veterans of the game of football. I strategically declined against taking a penalty kick. Why? I would have scored and Rufai is a friend. It was not a joke. It was a family football fanfare organised by Systemspecs Limited under the Remita Corporate Champions Cup (RC3) football initiative to keep corporate employees in top physical condition.

    Kids watched as their fathers took a tumble on the pitch. Wives sheered as their husband celebrated a goal. Friends and ardent football fans exchanged banters as radio deadliest football personalities, Femi and the Gang from Nigeria Info ran commentaries to add verve to the final between UBA and Nestle. Sorry, guys, UBA lost. Nestle won. However, the initiative was a melting pot of activities for employees and employers from different organisations across several industries. Remita removed restricted boundaries. CEOs and floor managers let down their hairs on a Sunday evening with no deadline starring at you.

    Management of UBA, Etisalat, MTN, Nestle, Leadway Assurance, employees and their families were enthusiastic about the tournament which lasted three weeks. However, some corporate organisations have engaged in sporting activity. The flip side is that it is confined to their four walls. Access Bank, First Bank, Fidelity Bank, GTBank and Lagos Business School have similar healthy routines. On the other hand, Remita – an electronic payment platform that helps you to move and receive payment easily – has extended the frontiers of promoting healthy living beyond the office walls.

    Through RC3, the sports-oriented electronic payment platform is designed to encourage a healthier lifestyle while increasing interaction between employees of different organisations in a fun atmosphere. Remita platform has attracted the involvement of about 15 corporate giants from different sectors of the economy.

    John Obaro, CEO, who by the way scored his penalty kick, explained that Remita is at the forefront of promoting a healthy work-life balance and cross-industry relationships among professionals through sports. “We want people to exercise and have fun without stress”. I am not sure if the Executive Director, ‘Deremi Atanda, score his penalty kick but he explained that work-life balance is about people feeling satisfied with the way they divide their time and energy between paid work and other things they need and want to do.

    Remita harnesses the potentials of football to reach the public, especially corporate Nigeria. While I watch the game of football at the Campos mini stadium, I realised that it is important for corporate executives to live healthy lifestyles as it would enable them to lead healthy organisations. I also reckoned that is why Remita used sport as a powerful unifying force within the society.

    According to report, Remita moves over $2.5 billion monthly as the Central bank of Nigeria (CBN) payment gateway. In its own way of deepening remittances through sport, Remita platform works with the public and private organisations of different sizes. It makes receiving and making payments easy.

    Developed 100 per cent in Nigeria, Remita empowers SMEs, multinationals, states, MDAs, NGOs etc to receive payments from their customers through a wide range of convenient payment channels such as their website, internet banking, mobile wallet, PoS or any bank branch.  As an individual, you can make remittance through Remita for direct debit or standing order such as your pay TV subscription so that you can watch as Peter Rufai saves some penalty kicks.

  • Mobile money will boost remittances, says WorldRemit

    Mobile money will boost remittances, says WorldRemit

    Senior Mobile Analyst at WorldRemit Alix Murphy has said mobile money will play a pivotal role in global remittances and help to reduce fees, improve speed and convenience for users. In an interview with The Nation, she says mobile money remains a key of financial inclusion and getting financial services to the unbanked. Murphy says there are two-and-a-half billion unbanked people in the world and that one billion of these people already have access to a mobile phone, a potential means of accessing financial services, reports COLLINS NWEZE.

    For the Senior Mobile Analyst at WorldRemit, Alix Murphy,mobile money remains the main or only means of accessing financial services. She said Nigerians in Diaspora are famed for their generosity, and keen adopters of new technologies including mobile money services.

    She said Nigerians are among the first to really embrace the technological revolution in money transfers. Using convenient online and mobile services, they are very likely to sustain the record in sending remittances.

    She said WorldRemit has been supporting commercial relationships with telecoms operators all over the world, as well as promoting mobile money opportunities in developing countries, including Nigeria.

    Murphy, before joining WorldRemit, was the market intelligence analyst for the Groupe Speciale Mobile Association (GSMA), where she analysed trends in mobile money and digital identity and consulted mobile operators on revenue opportunities.

    “That’s why WorldRemit has worked hard to connect to more mobile money services than any other money transfer firms,” she said.

     

    Global prediction

     

    Murphy reiterated World Bank’s prediction that the number of international migrants is expected to exceed 250 million this year. “So we shouldn’t be surprised that as long humans continue to go abroad for work or family reasons, we will continue to see increasing volumes in international remittances,” she said.

    She said that remittances create opportunities and that in Nigeria, as elsewhere in Africa, there is a huge appetite for business and there are countless examples of Nigerians receiving money from relatives abroad which they used to finance or set up small businesses at home.

    “Let me look at this from the perspective of international transfers: the Groupe Speciale Mobile Association actually noted that the average cost of sending money internationally using mobile money as a receive method was $4. That’s less than half the cost of sending money internationally to Africa by traditional money transfer firms,” she said.

    On how to boost mobile money businesses, he advised: “Establishing trust among customers is important for all financial service providers. Both banks and Mobile Money services have an important role to play in increasing awareness about the enhanced security and protection that digital financial transactions can bring. Cash is anonymous, whereas digital transactions necessarily have an audit trail from end to end, not to mention increased speed and reliability,” she said.

     

    Mobile money model

     

    On the right mobile money model needed by Nigeria, Murphy said every country has its own unique context which impacts the ability for Mobile Money to thrive. “Most of the successful Mobile Money services involve some type of partnership between banks and telcos, but one important thing to remember is that Mobile Money requires significant investments in technology, agent training, marketing, and customer education in order to succeed. We partner with both telcos and banks that have made this commitment to investing in customer education,” she added.

    She advised Nigerian shareholders not to be in a hurry to reap from mobile money businesses. “Shareholders who invest in Mobile Money must understand the very different dynamics of this industry compared to typical banking or telco services. The most successful Mobile Money services in other countries took several years to become profitable, but their shareholders made long-term investments which required patience and dedication in order to establish an excellent service,” she said.

     

    Poor network quality

     

    On tackling poor network in the industry, she said Nigerian operators should look to countries like Somaliland, Kenya, or Zimbabwe for a sense of the overwhelming success of mobile money services. “Clearly, there are major incentives for telcos to invest in network infrastructure. There is no doubt that investments in robust and resilient systems, as well as adequate customer education about coverage and network safety will ultimately allow telecom operators to drive mobile money adoption rates,” she said.

    Murphy said WorldRemit is looking at telcos, banks, and regulators to work in unison for a more inclusive financial services environment. “The World Bank noted that Mobile Money has contributed significantly to an increase in financial inclusion in East Africa, and we expect to see similar impact as Mobile Money services grow in other regions.  There are a number of instructive learnings from other African markets,” she explained.

    The company, she said, wants to enrich people’s lives by giving them the power to share money with friends and family – anytime, anywhere. She said traditional money transfer companies, with their brick-and-mortar business model and agent-exclusivity arrangements, have long since overcharged customers, while delivering an appalling customer experience.

    “WorldRemit is an online service that lets people send money to friends and family living abroad, using a computer, smartphone or tablet. It is a convenient, low-cost alternative to traditional money transfer companies that use high street agents and charge unreasonable fees.

    Around the world, WorldRemit offers customers the option of receiving money as airtime top-ups, bank deposits, cash pick-up, or Mobile Money. In Nigeria, WorldRemit currently sends to most major banks as well as providing airtime top-ups for phones on Airtel, Etisalat, GLO, and MTN,” she said.

     

    Expansion plans

     

    Murphy said that WorldRemit’s international business development team is already working with existing and prospective partners on the ground in Africa. As the business grows, we will most likely devote more and more resources to fast-growth markets.

    “As a business, we are growing incredibly fast and we now have more than 180 employees around the world. It’s important to make sure that we continue to work as smoothly and effectively as we have done in the past.

    “WorldRemit is shaking up the money transfer industry like no company has done before. We are working hard to launch our service in more and more countries, including the United States, where many Nigerians live. We are also adding more receive options.

    “For our existing and prospective customers, that means they will get to use a service as convenient and innovative as no other. In five years, we expect that, by and large, customers will be embracing the convenience of sending money online and from Smartphone to Mobile Money services – a true mobile-to-mobile experience,” she said.

     

    World Bank position

     

    World Bank said Nigeria received $21 billion last year, accounting for two-thirds of all remittances to sub-Saharan Africa, an online money transfer service.

    The global lender said Nigeria remains among the world’s largest recipients of remittances and that remittances to the region are projected to reach $36 billion in 2017. In 2013, remittances financed one-third of the country’s imports.

    In an emailed report titled: How Mobile Money will Power Global Remittances, it said global remittances will grow slowly this year, but accelerate again in 2016 and 2017.

    Furthermore, it said global remittances will this year, reach $586 billion at a slower growth rate of 0.4 per cent due to economic conditions but will accelerate again to reach an estimated $636 billion in 2017.

    The lender said fees are far too high and that the average cost of sending $200 to sub-Saharan Africa remains at 12 per cent of the amount, higher than the G20’s target of five per cent.

    This, it attributed to the cost of bricks-and-mortar agent networks of traditional firms.  “There is a huge potential for mobile technology to reduce costs on both the send and receive sides,” he said.

    According to the global lender, mobile money will grow to play a huge role in remittances and help to bring down fees.

    “Worldwide Mobile Money usage is exploding with 261 mobile money services now live across 89 countries with 103 million active users as of December 2014. More than half of these services currently in operation are in sub-Saharan Africa,” it said.

    Mobile money helps to reduce remittance fees, adding that the median cost of sending $100 via Mobile Money is $4, less than half the average cost to send money globally via traditional money transfer channels.

     

    Benefits to consumers

     

    Some of the benefits to the consumer include security, convenience, accessibility, speed and ease of transaction, competitive charges, access to quality advisory services, and integrity of transactions; the customer literally carries his bank in his pocket or bag wherever he goes.

    Other not-so-obvious benefits, which are nonetheless important, are better cash flow management, enhanced financial planning, and inculcation of sustainable savings habit, which boost financial security and comfort in retirement.

    “Mobile payments, which I perform on my phone, help to reduce my travelling costs,” a farmer in rural Nigeria who uses mobile payment services said.

    Mobile money also has the potential to galvanise economic activities, leading to higher socio-economic development, lower cost of transactions and reduction of cash handling costs, among other benefits.

     

    Role of regulators

     

    The Central Bank of Nigeria said over the next few years, the focus of the regulator will be to strengthen the institutional and regulatory frameworks to achieve improved financial inclusion.  The application of mobile technology for financial services especially in rural areas will ensure that a large percentage of the population outside the formal banking system would have access to financial services using one of the three models of card-based, account-based and virtual account.

    Nigeria’s telecoms subscriber base, put at 131 million as of last September by the Nigeria Communication Commission, should play a major role in bringing the unbanked into the formal banking system.

    With over 50 per cent of Nigeria’s adult population unbanked, mobile banking could be the catalyst that will help quicken the adoption of banking services by this critical segment of the population.

     

     

     

     

     

    Mobile money is the next thing expected to pex bank said.

     

     

  • PenOp aids pension remittances with EPCCOS

    PenOp aids pension remittances with EPCCOS

    A pension industry platform named Electronic Pension Contribution Collection System (EPCCOS) that will drive seamless pension remittances of employees’ contribution by employers under the contributory Pension Scheme (CPS), has been developed by the Pension Fund Operators Association of Nigeria (PenOp).

    The EPCCOS platform is free for employers and will enable them comply with the scheme without difficulty. The platform is being tested with over 500 employers and will be formally launched for use by the public in January next year.

    The Managing Director, UBA Pension Fund Custodian and Chairman subcommittee on EPCCOS, Bayo Yusuf, made this known in Lagos at this year’s PENOP media partners retreat in Lagos. He said the pension operators are currently doing a pilot run on the platform with about 500 employers.

    He said the platform developer and host is the Nigerian Inter Bank Settlement System Plc (NIBSS), a company owned by the Central Bank of Nigeria (CBN).

    He said: “What we are doing with the employers now is for us to see whatever challenge an employer can encounter in the course of using the service. It is an industry application supported by the National Pension Commission (PenCom). The Commission has a regulatory oversight to ensure standards are maintained and necessary things are being done. The next phase is for them to give us a national database so that the validation will be done immediately.”

    Yusuf said the objective of the platform is to ensure seamless remittances, minimise reconciliation issues, timely crediting of employees’ Retirement Savings Account (RSA), and the elimination of employers’ burden of multiple schedule generation.

    NIBSS Head Business Process Outsourcing Department, Samuel Oluyemi, said: “Just like we had the problem of unremitted dividends in the capital market, the problem that EPCCOS came to solve is that of unremitted pensions.”

  • Diaspora remittances hit $21b, says UBA chief

    Diaspora remittances hit $21b, says UBA chief

    The Group Managing Director/CEO, United Bank for Africa (UBA), Phillips Oduoza has said Diaspora remittances to Nigeria as at last year stood at $21billion.

    Speaking at the launch of the bank’s outbound money transfer services in collaboration with MoneyGram, he said the business of remittances is a critical part of the payment system.

    He said the partnership with the money transfer giant would allow Nigerians to send naira abroad. “Nigeria is a very important part of the money transfer business. The launch is an extension of a long standing relationship with MoneyGram,” he said.

    The new product, ‘Naija sends’, also gives immigrants or expatriates opportunity to wire the local currency abroad through any UBA branch anywhere in Africa while the funds are received in dollar or the currency of the receiving country.

    He said the product is an indication that the lender is customer-focused and committed to efficient payment system. “This service opens a new opportunity for Nigerians to easily trade with other Africans and also trade with other parts of the world. It also offers a great platform to send money to loved ones abroad,” he said.

    Regional Manager, Anglophone West Africa, MoneyGram, Kemi Okusanya, said the launch of  the product has further deepened the brand’s reach and service.

    She said in the last 20 years, MoneyGram has facilitated over 15 million transactions in the country, enabling safe, convenient and reliable transfer of funds from the Nigerians in Diaspora to their loved ones.

    She said with the service, money could now be sent to oversea countries with ease at  good rates for such services.

    She said the outbound money transfer service allows people to send money in naira to over 200 countries around the world by simply working into any UBA branch  in the country and in 18 other African countries where it has operations outside the country or through any other MoneyGram Agent Bank.

  • Diaspora remittances hit $21b, says KPMG

    Diaspora remittances hit $21b, says KPMG

    With a yearly growth rate of three per cent over the past five years and $21 billion inflow of personal remittances last year, Nigeria is the fifth largest remittance receiver worldwide in terms of volume, a KPMG report has shown.

    The Banking Industry Customer Satisfaction Survey 2014 by the firm obtained by The Nation showed that remittance to Nigeria accounts for 65.6 per cent of total flows into sub-Saharan Africa.

    The feat, it said, presents some avenue for banks that may want to tap into the opportunities created by this class of Nigerians who wish to transact banking business using their local bank accounts.

    In an online survey of 127 Nigerians resident in 12 countries who maintain local banking relationships, convenience was the overwhelming driver of value.

    According to the report, when asked for the most important factor in their banking relationships, 44 per cent of the customers selected the availability of internet banking. In particular, customers identified the ease of use of the internet banking platform as the most important factor followed closely by the quality of customer service.

    Seventy-seven per cent of those surveyed transfer money through formal channels – banks (48 per cent) or other money transfer agencies (29 per cent) – compared to 19 per cent who said they send money home through less informal ways – family and friends – travelling home.

    Also, on the effectiveness of the contact centre, the ease of complaints resolution was cited as a major area of dissatisfaction.

    It also showed that more than 50 per cent of customers who have used their bank’s contact centre have been dissatisfied with the promptness of issues resolution and quality of feedback. It cited one bank’s  response to a customer facing some debit card challenges that the customer should wait until his next visit home, for his query to be resolved.

    The increasing frequency and magnitude of cybercrime incidents globally make it apparent that cybercrime is here to stay. The Central Bank of Nigeria’s (CBN) report for the first half of last year noted that there were 2,478 fraud and forgery cases  banks worth over N20 billion. This, it said, represented an eight per cent increase over that of the previous year but a significant increase in value of over 200 per cent from 2012.

    In this year’s survey, two per cent of retail customers indicated that they had experienced a fraud  in the last year and while this number appears small today, it may signify the start of a potentially disturbing future trend.

    It said a survey by KPMG in the Netherlands showed, 80 per cent of the respondents indicated that cybercrime is no hype and will continue to be a highly challenging topic.

    The survey showed that 49 per cent of organisations have experienced some form of cybercrime activity during the past 12 months.

    That is not to say the rest have not experienced an attack; they may not have the proper detection measures in place. Among the 49 per cent that have experienced an attack, 10 per cent indicated that they have been attacked more than 100 times within the past year. Inadequate detection procedures may conceal the real number of cybercrime attacks. Only 50 per cent of the respondents were able to detect attacks and only 44 per cent of the organisations felt comfortable that they were able to respond.

    It said organisations should ask themselves whether they are aware and capable of handling a cybercrime attack. The survey found that 35 per cent do not agree that their organisation is aware of cybercrime, though the financial sector respondents score significantly lower. This would imply that financial institutions are more aware of cybercrime than other typologies.

    Attacks may come by various methods heavily on and correlate with the budgets that have been made available. The damage from cybercrime attacks and budgets allocated to cybercrime defence can be substantial. It said the way in which cybercrime defence budgets are allocated to prevention, detection and response measures should be considered carefully.

    Nineten per cent of the organisations in the survey spend more than 1.5 million euros on cybercrime prevention, detection and response per year.

    The damage caused shows that not only did financial organisations report almost half of all incidents resulting in damage, they were also the victims with the most incidents in the highest damage bracket.

    The survey results revealed that 75 per cent of the over 1.5million euro attacks occur in this sector. “In all, our survey found that financial service organisations are more aware of cybercrime than other organisations (80 per cent),’’ the firm added.

  • Diaspora remittances rise to $65b, says AfDB

    Diaspora remittances rise to $65b, says AfDB

    Remittances from the Diaspora and Foreign Direct Investment (FDI) to Africa have continued to rise with relatively large volumes in recent years, the African Development Bank (AfDB) has said.

    According to the lender’s 2013 annual report, remittances reached $65 billion last year, indicating an increase of five per cent, compared to 2012.

    Remittances from the Diaspora should reach $67 million by year-end, it said. The lender said bulk of the remittances were to North and West Africa, regions with the largest number of migrants abroad and which alone received some 80 per cent of the total funds from the Diaspora.

    AfDB said 40 per cent of the remittances are from Europe, 28 per cent from the United States, 13 from Africa itself and nine per cent from the Middle East. It said the resilience of these remittances is starting to attract the interest of the public authorities and the private sector in Africa.

    The bank said net FDI flows have increased by almost nine per cent, to reach $57 billion last year. This increase reflects Western investors’ quest for value amid general low interest rates. The bulk of FDI went to mining exploration and to building the capacity of the extractive industries.  Paradoxically, while the continent is short of investment capital, considerable financial resources continue to leave African countries illegally.

    AfDB’s Group President, Donald Kaberuka said last year that growth for  most African countries continued to be robust and was expected to accelerate this year. However, sustainability requires that the benefits are shared more equitably.

    “In 2013, the bank committed $6.7 billion to projects and programmes in member countries, an increase of some three per cent in real terms over the previous year in accordance with our strategy—the bulk of the investments were in infrastructure,” he said.

    Kaberuka said the lower overall lending at the bank window was more than compensated for by higher levels of financing from our concessional window, the African Development Fund (ADF).

    “Despite the unfavourable global economic environment, the bank has maintained a strong financial position. Our risk bearing capacity remains robust. The four major rating agencies once again reaffirmed their AAA rating of the bank’s senior debt, with a stable outlook. This confirms the bank’s capital adequacy, prudent financial and risk management, solid shareholder support, and preferred creditor status,” he added.

  • Diaspora remittances up by five percent to $65b, says AfDB

    Diaspora remittances up by five percent to $65b, says AfDB

    Despite the financial crisis, remittances from the Diaspora and foreign direct investment (FDI) to Africa have continued, with relatively large volumes in recent years, The African Development Bank (AfDB) has said.

    According to the lender’s 2013 annual report released at the weekend, remittances reached $65 billion last year, an increase of five per cent compared to 2012. The bulk of the remittances were to North and West Africa, regions with the largest number of migrants abroad and which alone received some 80 per cent of the total funds from the Diaspora.

    AfDB said 40 per cent of the remittances are from Europe, 28 per cent from the United States, 13 from Africa itself and about nine per cent from the Middle East. It said the resilience of these remittances is starting to attract the interest of the public authorities and the private sector in Africa.

    It said net foreign direct investment (FDI) flows have increased by almost nine per cent, to reach $57 billion in 2013. This increase reflects Western investors’ quest for value amid general low interest rates. The bulk of FDI went to mining exploration and to building the capacity of the extractive industries.  Paradoxically, while the continent is short of investment capital, considerable financial resources continue to leave African countries illegally.

    President, AfDB Group, Donald Kaberuka, said in 2013, growth for most African countries continued to be robust and is expected to accelerate in the year. However, sustainability requires that the benefits are shared more equitably. “In 2013, the bank committed $6.7 billion to projects and programmes in member countries, an increase of some three per cent in real terms over the previous year in accordance with our strategy—the bulk of the investments were in infrastructure,” he said.

    Kaberuka said the lower overall lending at the bank window was more than compensated for by higher levels of financing from our concessional window, the African Development Fund (ADF).

    “Despite the unfavourable global economic environment, the bank has maintained a strong financial position. Our risk bearing capacity remains robust. The four major rating agencies once again reaffirmed their AAA rating of the bank’s senior debt, with a stable outlook. This confirms the bank’s capital adequacy, prudent financial and risk management, solid shareholder support, and preferred creditor status,” he said.

     

  • ‘Excessive tax on African remittances hurts devt’

    ‘Excessive tax on African remittances hurts devt’

    Africans face the highest remittance fees globally, regularly paying a “super tax” to send money home at a cost that hurts families and holds back development in the world’s poorest continent, a think-tank has said.

    The London-based Overseas Development Institute (ODI) said reducing remittance charges to global average levels would generate $1.8 billion, enough to put 14 million children through primary school, or provide clean water to 21 million people.

    The average cost to transfer $200 to sub-Saharan Africa was about 12 per cent, compared with a global average of 7.8 per cent, ODI said in its report, “Lost in intermediation”, branding the higher fees a “super tax”.

    “This remittance super tax is diverting resources that families need to invest in education, health and a better future,” said the report’s co-author, Kevin Watkins.

    “It is undercutting a vital lifeline to hundreds of thousands of poor families in Africa. Africans living in the United Kingdom (UK) make huge sacrifices to support their families, yet face charges which are indefensible in an age of mobile banking and internet transfers,” Watkins said in a statement.

    Weak competition, “exclusivity agreements” between money transfer operators, agents and banks, and flawed financial regulation contributed to pushing charges higher, ODI said.

    The institute said two money transfer operators – Western Union and MoneyGram – accounted for two thirds of remittance transfers to Africa.

    Western Union said the average global revenue it earned from transferring money was 5-6 per cent of the amount sent.

    “However, our pricing varies between countries depending on a number of factors such as consumer protection costs, local remittance taxes, market distribution, regulatory structure, volume, currency volatility, and other market efficiencies,” it said in a statement.

    There was no fee for money transferred online from Britain for a cash payout in Africa when done through the sender’s bank account, it said.

    Officials from MoneyGram were not immediately available for comment.

    In 2013, remittances to Africa were valued at $32 billion or around two per cent of gross domestic product (GDP). In 2016, they are projected to rise to more than $41 billion, ODI said.

    “With aid set to stagnate, remittances are set to emerge as an increasingly important source of external finance,” it said.

    The ODI said there was no evidence of a fall in fees for Africa’s diaspora, even though governments from the G8 and G20 have pledged to reduce charges to five percent.

    It can be even more expensive to transfer money within Africa. For example, migrant workers from Mozambique pay charges as high as 20 percent to send savings home from South Africa, the report said.

    ODI called for an investigation of global money transfer operators by European Union and US anti-trust bodies and regulatory reform in Africa to revoke exclusivity deals between money transfer operators and banks and agents.

  • Remittances to ex-PHCN workers hit N370b

    The Director-General of the Bureau of Public Enterprises (BPE), Mr. Benjamin Ezra Dikki, has said the committee chaired by the Permanent Secretary, Federal Ministry of Power, has remitted to the Office of the Accountant-General of the Federation (OAGF), N370billion. He said the money is for the payment of the former employees of the defunct Power Holding Company of Nigeria (PHCN).

    Dikki added that the committee had verified to date, 45,136 workers for payment out of 47,913 staff.

    According to the BPE Head, Public Communications, Mr. Chigbo Anichebe, Dikki made the disclosure during a chat with reporters after he unveiled the agency’s 2014 work plan in Abuja.

    The BPE boss said the bureau’s nationwide field verification of the possible 4,194 PHCN retirees, 2,931 or their next of kin have been verified, leaving 1,163 yet to be verified.

    He said the verification committee and the bureau were making effort to ensure that the outstanding pensioners were verified and paid their entitlements.

    The BPE boss advised the pensioners or their next of kin, who had not been verified, to do so before Wednesday.

    He said of the earlier 47,913 workers’ list obtained from PHCN, 45,136 verified staff entitlements had been cash-backed to the Office of the Accountant-General of the Federation for payment.

    The BPE boss explained that 338 on the retirees’ list were exited workers, while 21 were cases of duplication.

    He said 262 cases were currently being processed and 551 had been recommended for validation by the Verification Committee on Payment of PHCN Severance Payment, following a nationwide verification exercise.

    The DG said President Goodluck Jonathan made it a priority and demonstrated great commitment in resolving labour issues in the power sector.

    He noted that besides committing the proceeds realised from the sale of power assets for the payment of the workers’ terminal benefits, government at the initial stage of the transaction, released N57billion to take care of the workers’ pension. This was coming after government had increased the workers’ salary by 50 per cent and regularised the casual workers of the defunct PHCN.

    Government also released over N6 billion to the union leadership as check-off dues from the workers entitlements.

  • Software remittances take 40% of forex

    The Nigeria Communications Commission (NCC) said there has been a steady increase in foreign exchange (forex) demand for software and other telecommunication equipment by operators. It said 40 per cent of total remittances in the last three years were for software.

    Director, Policy and Competition at the NCC, Mrs Lolia Emakpore who made this known, said, this was due to demand for network purchase, expansion and upgrades, adding that the regulator processed and approved over 5,580 confirmation of reasonableness of services (CRS) for forex invoices in the telecoms industry between 2010 and 2013.

    She, however, said over 745 applications were declined due to integrity tests failures ranging from over-invoicing, expired contract agreements as well as duplications of invoices.

    “Over the years, the NCC processed CRS invoices applications running into billions of dollars and millions of pounds sterling and euro currencies.

    “Software remittances accounts for over 40 per cent of the total cost of CRS processed over the last three years,” she said.

    According to figures from the regulator, in 2010, it processed CRS for forex invoices for $281.2million, €5.7million and £1.2million while in 2011, it processed invoices for $624million, €14.5million and £1.4million. Last year, this figure went up to $894million, €31.37 million and €0.78million respectively.

    Emapkore, who spoke in Lagos at a forum organised to review existing guidelines for CRS application processing, recalled that in 2002, the Central Bank of Nigeria (CBN) requested for regulatory collaboration and support from the NCC for CRS for telecoms related transactions, adding that NCC has been providing expert advice to CBN on CRS transactions remittances based on CBN’s regulations on international trade.

    She said: “NCC took over this regulatory oversight to support the CBN and developed the initial Guidelines for CRS application processing in 2003, highlighting the expectations from the bankers, operators and the vendors in respect of the CRS invoices.

    “The imperative of carrying out the CRS function include check capital flights; encourage the development of telecom software skills and local content in Nigeria; ensure efficient utilisation of forex by the telecoms companies; control forex round tripping; and bridge the gap between telecoms Foreign Direct Investments (FDIs) and CRS remittances,” she said.