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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.

Crude Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

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Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

Oil retreated from an earlier rally with investment banks and traders predicting the market can go significantly higher in the months to come.

Futures in New York pared much of an earlier increase to $63 a barrel as the dollar climbed and equities slipped. Bank of America said prices could reach $70 at some point this year, while Socar Trading SA sees global benchmark Brent hitting $80 a barrel before the end of the year as the glut of inventories built up during the Covid-19 pandemic is drained by the summer.

The loss of oil output after the big freeze in the U.S. should help the market firm as much of the world emerges from lockdowns, according to Trafigura Group. Inventory data due later Tuesday from the American Petroleum Institute and more from the Energy Department on Wednesday will shed more light on how the Texas freeze disrupted U.S. oil supply last week.

Oil has surged this year after Saudi Arabia pledged to unilaterally cut 1 million barrels a day in February and March, with Goldman Sachs Group Inc. predicting the rally will accelerate as demand outpaces global supply. Russia and Riyadh, however, will next week once again head into an OPEC+ meeting with differing opinions about adding more crude to the market.

“The freeze in the U.S. has proved supportive as production was cut,” said Hans van Cleef, senior energy economist at ABN Amro. “We still expect that Russia will push for a significant rise in production,” which could soon weigh on prices, he said.

PRICES

  • West Texas Intermediate for April fell 27 cents to $61.43 a barrel at 9:20 a.m. New York time
  • Brent for April settlement fell 8 cents to $65.16

Brent’s prompt timespread firmed in a bullish backwardation structure to the widest in more than a year. The gap rose above $1 a barrel on Tuesday before easing to 87 cents. That compares with 25 cents at the start of the month.

JPMorgan Chase & Co. and oil trader Vitol Group shot down talk of a new oil supercycle, though they said a lack of supply response will keep prices for crude prices firm in the short term.

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Crude Oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

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Crude oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

Oil prices rose on Monday as the slow return of U.S. crude output cut by frigid conditions served as a reminder of the tight supply situation, just as demand recovers from the depths of the COVID-19 pandemic.

Brent crude was up $1.38, or 2.2%, at $64.29 per barrel. West Texas Intermediate gained $1.38, or 2.33%, to trade at $60.62 per barrel.

Abnormally cold weather in Texas and the Plains states forced the shutdown of up to 4 million barrels per day (bpd) of crude production along with 21 billion cubic feet of natural gas output, analysts estimated.

Shale oil producers in the region could take at least two weeks to restart the more than 2 million barrels per day (bpd) of crude output affected, sources said, as frozen pipes and power supply interruptions slow their recovery.

“With three-quarters of fracking crews standing down, the likelihood of a fast resumption is low,” ANZ Research said in a note.

For the first time since November, U.S. drilling companies cut the number of oil rigs operating due to the cold and snow enveloping Texas, New Mexico and other energy-producing centres.

OPEC+ oil producers are set to meet on March 4, with sources saying the group is likely to ease curbs on supply after April given a recovery in prices, although any increase in output will likely be modest given lingering uncertainty over the pandemic.

“Saudi Arabia is eager to pursue yet higher prices in order to cover its social break-even expenses at around $80 a barrel while Russia is strongly focused on unwinding current cuts and getting back to normal production,” said SEB chief commodity analyst Bjarne Schieldrop.

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Crude Oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

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oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

Oil prices rose to $65.47 per barrel on Thursday as crude oil production dropped in the US due to frigid Texas weather.

The unusual weather has left millions in the dark and forced oil producers to shut down production. According to reports, at least the winter blast has claimed 24 lives.

Brent crude oil gained $2 to $65.47 on Thursday morning before pulling back to $64.62 per barrel around 11:00 am Nigerian time.

U.S. West Texas Intermediate (WTI) crude rose 2.3 percent to settle at $61.74 per barrel.

“This has just sent us to the next level,” said Bob Yawger, director of energy futures at Mizuho in New York. “Crude oil WTI will probably max out somewhere pretty close to $65.65, refinery utilization rate will probably slide to somewhere around 76%,” Yawger said.

However, the report that Saudi Arabia plans to increase production in the coming months weighed on crude oil as it can be seen in the chart below.

Prince Abdulaziz bin Salman, Saudi Arabian Energy Minister, warned that it was too early to declare victory against the COVID-19 virus and that oil producers must remain “extremely cautious”.

“We are in a much better place than we were a year ago, but I must warn, once again, against complacency. The uncertainty is very high, and we have to be extremely cautious,” he told an energy industry event.

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