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Premium Pension Pays N118bn Benefit to Pensioners

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Pensioners
  • Premium Pension Pays N118bn Benefit to Pensioners

Premium Pension Limited, PPL, has said it paid not less than N118billion benefits to pensioners since 2007 when it began operation following the Pension Reforms Act, PRA, 2004, with PPL which commenced business with an initial share capital of N500 million, now has shareholders’ funds of N1.3 billion.

Speaking at the formal opening of a new branch in Ikoyi, Managing Director/CEO PPL, Mr. Wilson Ideva, said that the new branch was one out of the 20 branches established nationwide and 33 centres across the entire 36 states of the federation with headquarters in Abuja.

According to Ideva, “We are in a retail business and pension business is a business we have to do with individuals, we are not dealing with factories but human beings, we need to bring services closer to the people, we need to provide environment where people will walk into and benefit from our premium services.

“Four years ago, we looked at the industry and found that we need to provide a platform for people, whether you are in active service or retired, to walk into an office and be able to carry out services required seamlessly and also give you a conducive environment. We currently have up to 16 thousand retirees we are paying every month and we pay them at least on the 19th of every month.

“So, far, we have paid N118 billion in benefit to retirees and we are just counting, that is what we are set out to do and today we have come closer to the people in Lagos Island where you have head offices of banks, captains of industries and major companies.”.

Also, Lagos State Head of Service, Mrs. Folashade Adesoye, said PPL was not among the six Pension Fund Administrators, PFAs, approved in 2007 when it commenced the contributory pension scheme but through its regulatory agency, observed happenings in the pension industry and in 2015, gave approval for premium pension to join the state government account as one of the approved pension fund administrators.

Adesoye said the approval was given based on the conviction by the government that PPL was one of the best PFAs in the country today. “Lagos State today, has recorded appreciable success on the management of the Contributory Pension Scheme, CPS. We are aware of our modest achievements, but we continue to strive to improve on our operations all in a bid to ensure a good social security arrangement for our employees at retirement.

“Our contributory pension deduction operations are automated so much so that, in line with the provisions of the law, pension contributions are remitted not later than seven days after salaries are paid. Accrued pension rights are systematically paid with LASPEC always a step ahead, drawing the attention of government to her obligations well in advance to ensure proper planning,” she said.

Chairman, Board of Directors, PPL, Alhaji. Aliyu Dikko, commended the National Pension Commission, PenCom, for its efficiency and support, stating that without its prompt regulation and guidance, the company would not have been where it is today.

Dikko stressed the company’s policy of zero tolerance to non-compliance with regulatory requirements while assuring Lagos State Pension Board that it would continue to partner it in providing excellent services to the state workforce and retirees.

He assure further that the company will continue to be a good corporate citizen of the state and the nation and continue to impact positively on the community, improve its people, facilities and technology so that accessing its services will continue to be seamless to the delight of clients.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Crude Oil

Oil Rises as Threat of Immediate Iran Supply Recedes

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Oil prices rose on Tuesday, with Brent gaining for a fourth consecutive session, as the prospect of extra supply coming to the market soon from Iran faded with talks dragging on over the United States rejoining a nuclear agreement with Tehran.

Brent crude was up by 82 cents, or 1.13%, to $73.68 per barrel, having risen 0.2% on Monday. U.S. oil gained 91 cents, or 1.3%, to $71.79 a barrel, having slipped 3 cents in the previous session.

Indirect discussions between the United States and Iran, along with other parties to the 2015 deal on Tehran’s nuclear program, resumed on Saturday in Vienna and were described as “intense” by the European Union.

A U.S. return to the deal would pave the way for the lifting of sanctions on Iran that would allow the OPEC member to resume exports of crude.

It is “looking increasingly unlikely that we will see the U.S. rejoin the Iranian nuclear deal before the Iranian Presidential Elections later this week,” ING Economics said in a note.

Other members of the Organization of Petroleum Exporting Countries (OPEC) along with major producers including Russia — a group known as OPEC+ — have been withholding output to support prices amid the pandemic.

“Additional supply from OPEC+ will be needed over the second half of this year, with demand expected to continue its recovery,” ING said.

To meet rising demand, U.S. drillers are also increasing output.

U.S. crude production from seven major shale formations is forecast to rise by about 38,000 barrels per day (bpd) in July to around 7.8 million bpd, the highest since November, the U.S. Energy Information Administration said in its monthly outlook.

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Crude Oil

Oil Prices Rise as Demand Improves, Supplies Tighten

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Oil prices rose on Monday, hitting their highest levels in more than two years supported by economic recovery and the prospect of fuel demand growth as vaccination campaigns in developed countries accelerate.

Brent was up 53 cents, or 0.7%, at $73.22 a barrel by 1050 GMT, its highest since May 2019.

U.S. West Texas Intermediate gained 44 cents, or 0.6%, to $71.35 a barrel, its highest since October 2018.

“The two leading crude markers are trading at (almost) two-and-a-half-year highs amid a potent bullish cocktail of demand optimism and OPEC+ supply cuts,” said Stephen Brennock of oil broker PVM.

“This backdrop of strengthening oil fundamentals have helped underpin heightened levels of trading activity.”

Motor vehicle traffic is returning to pre-pandemic levels in North America and much of Europe, and more planes are in the air as anti-coronavirus lockdowns and other restrictions are being eased, driving three weeks of increases for the oil benchmarks.

The mood was also buoyed by the G7 summit where the world’s wealthiest Western countries sought to project an image of cooperation on key issues such as recovery from the COVID-19 pandemic and the donation of 1 billion vaccine doses to poor nations.

“If the inoculation of the global population accelerates further, that could mean an even faster return of the demand that is still missing to meet pre-Covid levels,” said Rystad Energy analyst Louise Dickson.

The International Energy Agency (IEA) said on Friday that it expected global demand to return to pre-pandemic levels at the end of 2022, more quickly than previously anticipated.

IEA urged the Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, to increase output to meet the rising demand.

The OPEC+ group has been restraining production to support prices after the pandemic wiped out demand in 2020, maintaining strong compliance with agreed targets in May.

On the supply side, heavy maintenance seasons in Canada and the North Sea also helped prices stay high, Dickson said.

U.S. oil rigs in operation rose by six to 365, the highest since April 2020, energy services company Baker Hughes Co said in its weekly report.

It was the biggest weekly increase of oil rigs in a month, as drilling companies sought to benefit from rising demand.

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Crude Oil

FG Spends N197.74 Billion on Subsidy in Q1 2021

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Crude oil - Investors King

The Federal Government has spent a total sum of N197.74 billion on fuel subsidy in the first quarter (Q1) of 2021, according to the Federal Account Allocation Committee (FAAC) report for May.

The report noted that the value of shortfall, the amount the NNPC paid as subsidy, in the March receipts stood at N111.97 billion while N60.40 billion was paid in February.

In the three months ended March, the Federal Government spent N197.74 billion on subsidy.

The increase in subsidy was a result of rising oil prices, Brent crude oil, against which Nigerian oil is priced, rose to $73.13 per barrel on Monday.

The difference in landing price and selling price of a single litre is the subsidy paid by the government.

On May 19, the Nigerian Governors Forum suggested that the Federal Government removed the subsidy completely and pegged the pump price of PMS at N380 per litre.

The governors’ suggestion followed the non-remittance of the NNPC into the April FAAC payments, the money required by most states to meet their expenditure such as salaries and building of infrastructure.

However, experts have said Nigeria is not gaining from the present surge in global oil prices given the huge money spent on subsidy.

Kalu Aja, Abuja-based financial planner and economic expert, said “If Nigeria is importing Premium Motor Spirit and still paying subsidy, then there is no seismic shift.”

“Nigeria needs oil at $130 to meet the deficit. In the short term, however, more dollar cash flow is expected and with depreciated Naira, it will reduce short term deficit.”

Adedayo Bakare, a research analyst, said that the current prices do not really mean much for the country economically.

He said, “The ongoing transition away from fossil fuels and weak oil production from the output cuts by the Organisation of Petroleum Exporting Countries will not make the country benefit much from the rising oil prices.

“Oil production used to be over two million barrels but now around 1.5 million barrels. We need OPEC to relax the output cuts for the naira to gain.”

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