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FG Owes Retirees N143bn, says PenCom

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The Director General of the National Pension Commission (PenCom), Ms
  • FG Owes Retirees N143bn, says PenCom

The National Pension Commission on Thursday said that the Federal Government owed a total of N142.6bn in pension liabilities to retired workers from 2014 to 2016.

The Director-General, PenCom, Mrs. Chinelo Anohu-Amazu, disclosed this in a memorandum submitted to the Senate Committee on Establishments and Public Service at the 2017 budget defence session.

A copy of the memorandum was made available to our correspondents.

The DG expressed worry over the inability of the government to adequately fund the Retirement Benefits Bond Redemption Fund Account, adding that the development had left huge liabilities in the payment of pensions to retirees.

For instance, she said in 2014, the commission requested for a provision of N93.06bn based on the 11,010 verified and enrolled Federal Government employees scheduled to retire that year as well as estimates for deceased employees.

However, she noted that only N30.58bn was approved, thus resulting in a shortfall of N62.48bn in the 2014 fiscal period.

Anohu-Amazu informed the committee that the monthly mandates of N2.54bn for four months (September to December 2014), amounting to N10.19bn, were not cash-backed and released into the RBBRF account by the Office of the Accountant-General of the Federation after the Budget Office of the Federation had issued the “approval-to incur-expenditure” for that purpose.

In the 2015 fiscal period, the PenCom DG said the commission had, based on the data obtained on the Federal Government employees retiring that year and the death benefits claims as of September 2015, determined the government’s pension liability of N98.7bn for 13,799 retirees and estimates for deceased employees.

However, she lamented that only N60.25bn was appropriated in the 2015 budget for the purpose, thus resulting in another shortfall of N38.45bn for the retirees and deceased employees.

For the 2016 fiscal year, she said the commission requested for the provision of N91.91bn in the Appropriation Act based on 16,267 verified and enrolled government employees scheduled to retire within the year as well as estimates for deceased employees.

However, she stated that N50.19bn was presented before the National Assembly by the Budget Office, thereby resulting in a shortfall of N41.71bn.

She lamented that out of the approved N50.19bn, only N18.82bn, which was the mandate for four and half months, was released into the RBBRF account.

This, according to her, implies that mandates for seven and half months in the sum of N31.37bn were not cash-backed by the Accountant General of the Federation.

Anohu-Amazu said, “The distinguished Senate Committee on Establishment and Public Service is further requested to consider and ensure the appropriation of adequate funds to facilitate the payment of the sum of N10,194,184,608 to pay all outstanding accrued benefits for deceased and mandatory retirees of the Federal Government for the period September to December 2014.

“The sum of N41,719,090,082, being the shortfall in the 2016 budget appropriation. The sum of N31,372,380,576, being the outstanding mandates for seven and half months in 2016 in order to effect payment of outstanding accrued benefits for deceased and mandatory retirees of the Federal Government.

“The appropriation of the total sum of N113,023,255,000 in the 2017 Appropriation Act in favour of the Retirement Benefits Bond Redemption Fund Account being the accrued benefits due to 16,267 retirees/prospective retirees and estimates for deceased employees for the year 2017.”

The PenCom DG stated that there was a need to ensure adequate appropriation under the Federal Government’s recurrent expenditure this year so as to facilitate the implementation of the 18 per cent rate of pension contributions.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Banking Sector

NDIC Issues Fresh Directives to Unpaid Heritage Bank Customers, List Requirements for Refund

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The Nigeria Deposit Insurance Corporation (NDIC) has issued fresh directives to customers of the defunct Heritage Bank who are yet to receive the refund of their money deposited in the bank.

The managing director of NDIC, Bello Hassan, through the director of communications and public affairs, Nuhu Bashir, issued the fresh directive during the corporation’s ‘special day’ event at the 36th Lagos International Trade Fair.

Urging unpaid customers to come forward, Hassan said that the requirements needed to claim a refund include the customer’s BVN, proof of account ownership, and alternative account details.

He detailed that affected customers can process their claims via the NDIC website, email, and social media platforms.

Highlighting the corporation’s role in liquidating Heritage Bank and facilitating the ongoing recovery and refund of depositors’ funds, Hassan stated, “Depositors who are yet to receive their payment should come forward with their BVN, proof of account ownership, identification, and alternative account details.”

NDIC reaffirmed its commitment to protecting depositors and ensuring financial stability.

“Our mandate is to safeguard depositors and ensure financial stability,” he stated.

Hassan assured customers that banks that are still in operation are safe saying, “All banks with active licenses from the CBN are safe and healthy,” Hassan said.

He pledged the corporation’s commitment to providing a safe and stable financial environment for Nigerians.

According to him, a stable financial environment will boost public confidence in financial institutions and enable businesses to thrive.

He stated, “The NDIC is committed to ensuring a stable financial environment that safeguards depositors and builds public confidence, enabling businesses to thrive and contribute to our nation’s economic development.”

Gabriel Idahosa, the president of the Lagos Chamber of Commerce and Industry (LCCI) praised the NDIC for its vigilant monitoring of banks and its proactive intervention in distressed institutions.

Idahosa said, “The corporation’s vigilant monitoring of banks, proactive intervention in distressed institutions, and ongoing commitment to depositor protection have instilled confidence in the banking sector.

“These ensure that banks can continue to serve businesses and individuals even in uncertain economic times.

“Its unwavering commitment to depositor protection and financial stability has been vital in navigating recent economic challenges and safeguarding the integrity of Nigeria’s banks.”

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Banking Sector

Zenith Bank Commends Customers After Successfully Unveiling Upgraded Enhanced Tech infrastructure

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Zenith Bank - Investors King

Zenith Bank Plc has announced that it now boasts the best technology infrastructure in the banking industry, positioning itself to provide an exceptional customer experience and superior service delivery moving forward. This upgrade follows a recent comprehensive technology enhancement.

The bank expressed its heartfelt gratitude to customers for their support and patience throughout the upgrade process, while also extending apologies for any inconveniences experienced during this time.

This announcement was made in a social media post on Wednesday, signed by Dame Dr. Adaora Umeoji, OON, the Group Managing Director/CEO.

In her message, the GMD/CEO emphasized the bank’s commitment to delivering an unparalleled service experience, stating, “We undertook this upgrade to ensure we can offer our customers the best possible service.”

Umeoji pledged that Zenith Bank will continue to innovate, ensuring that customer needs are met swiftly, safely, and conveniently.

The post read in part: “On behalf of the Board, Management, and Staff of Zenith Bank PLC, I would like to thank you for your patience and support during our IT infrastructure migration to a new and more robust operating system.

“We are truly grateful for the trust and confidence you have placed in us. The primary reason for undertaking this extensive endeavor was to better position Zenith Bank PLC for improved service delivery to all our valued customers and to create memorable banking experiences at all our touchpoints.

“While I regret the inconveniences and challenges you faced during and immediately after our migration, I am pleased to inform you that Zenith Bank PLC now has the best technology infrastructure in the industry. We are committed to ensuring you experience superior service delivery going forward.

“Rest assured, you remain our top priority, and Zenith Bank will continue to innovate and offer value-added products and services to meet all your banking needs quickly, safely, and conveniently.”

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Finance

President Tinubu Orders Release of Minors Prosecuted for #BadGovernance Protests

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Following a recent viral video on the X app regarding the prosecution of minors who protested during the #BadGovernance movement, President Bola Ahmed Tinubu has ordered the immediate release of all prosecuted minors.

This was announced by the Minister of Information and National Orientation, Mohammed Idris, in a statement to the State House Correspondents in Abuja.

In a show of concern over the detention of minors, President Tinubu directed the Ministry of Humanitarian Affairs and Poverty Reduction to investigate and ensure that the law is fully applied to law enforcement agents involved in the unlawful act.

It was noted that the arrests violated human rights and the Child Rights Act, as the 32 detainees are under 18 years old.

Activist organizations, including the Arewa Consultative Forum (ACF), National Human Rights Commission (NHRC), Civil Society Legislative Advocacy Centre (CISLAC), Resource Centre for Human Rights and Civic Education (CHRICED), and Concerned Parents and Educators (CPE), condemned the actions and denounced the treason charges filed against the detained minors.

In a call to action, the Socio-Economic Rights and Accountability Project (SERAP) urged the president to instruct the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, to immediately and unconditionally release all protesters arrested during the #EndBadGovernance movement.

SERAP stated, “The immediate and unconditional release of all #EndBadGovernance protesters, including 32 hungry and malnourished children, is necessary.”

According to SERAP, for the peaceful exercise of fundamental human rights, including freedom of expression, assembly, and association without fear of persecution or undue restriction, all detained protesters should be released.

In response to the president’s directive, the Attorney General of the Federation (AGF), Lateef Fagbemi, commented that his office “will need to review the matter to enable me to make an informed decision.”

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