Connect with us

Business

Ambode: Pension Reform Act Has Enhanced Labour Market Flexibility

Published

on

pension fund
  • Pension Reform Act Has Enhanced Labour Market Flexibility

Lagos State Governor, Akinwunmi Ambode, has said that the provisions of the Pension Reform Act 2004, amended in 2014, has no doubt encouraged labour market flexibility and saved pensioners the dilemma of hanging their fortunes at the mercy of employers.

Ambode, made this observation, while speaking on the state’s full commitment to pension reforms at the opening session of a training programme for officers of the Lagos State Pension Commission(LASPEC) and public servants in the state.

Ambode, who was represented at the training titled, ‘Implications of the PRA 2004’ by Commissioner, Lagos State Ministry of Establishments, Training and Pensions, Dr. Akintola Benson, said the training was targeted at ensuring that the officers of LASPEC effectively discharge their duties and the generality of the public service adequately prepare for the future.

He stated that the general benefits of the Act as implemented in Lagos State, has boosted the welfare status of workers and pensioners in the state.

He observed that it has allowed the maintenance of a Retirement Savings Account (RSA) by each employee, which gives the workers responsibility over their retirement savings.

“Pensioners on the other hand, will no longer be at the mercy of employer, workers could choose how to allocate their retirement savings and diversify their investments over a range of investment instruments. It has been argued that personal accounts would provide all workers a higher rate of return than can be paid under the Direct Benefit plan, this approach affords participants an opportunity to pass wealth to survivors in the event of death”, he sated.

According to him, RSA, maintained by millions of workers, tends to generate massive long-term funds, which are available for investment.

He said given the economies of scale, the cost of investing such funds tends to be relatively lower than if individual workers were to undertake the investment on their own account.

He said having a pension scheme that pays out benefits in the form of a life annuity, benefits workers with protection against longevity risk, by pooling mortality risk across others.

“On a holistic note, the provisions of the law encourage labour market flexibility. The worker is free to move with his or her account as he or she moves to another place of employment and or residence. In this way, it is an important tool for enabling workers and employers to adapt to changing circumstances especially in a global environment in which change is a constant aspect of social and economic life,” he observed.

He said on its part,government, also stands to enjoy benefits under the law, adding that the law will stem further growth of pension obligations and provide a platform for addressing this liability.

According to him, it will also impose fiscal discipline in the budgetary process because pension obligations would be accurately determined, adding that the health of the economy is always a major concern of the government.

Ambode also said that aside the law’s potential to promote national savings and by implication, economic growth, funded pension schemes have the capacity to promote capital market development. adding,it is often argued that funded schemes have the capacity to promote economic reforms generally.

He said another area in which the government stands to benefit from the law is through the scheme’s ability to support the overall macroeconomic policies of reform.

He commended the work of the Lagos State Government on pension matters so far, maintaining that the 38th presentation of Retirement Benefit Bond Certificates to retirees under the Contributory Pension Scheme (CPS) created Section 3 of the Lagos State Contributory Pension Scheme law of 2007 (hereinafter referred to as “the Law”).

He said the Lagos State Government, has been consistently winning the National Pension Commission’s award for the Best Pensions Compliant State in the Federation adding that the state s determined to maintain this rating by continuing and improving on the timely payment of all pensions and other applicable benefits to our retiring workers upon disengagement from service.”

He said that in spite of the onerous funding obligations under the CPS, the administration of Governor Ambode has been dogged in meeting the funding obligations.

“The State Government has never failed to remit monthly contributions into the RSA of workers and, as at March, 2017, about N78,592 billion had been credited into employees’ acounts maintained by our 10 Pension Fund Administrators(PFAs). It has also been consistent in setting aside funds for the payment of accrued rights as provided for in the Pension Reform Law such that the State government has paid accrued pension rights of about N61 billion since the commencement of the Retirement Benefit Bond Certificate Presentations in 2010.”

As at today, a total number of 339 retirees will have their RSA credited with accrued pension rights of N1.6 billion, made up of gratuity and pension benefits under the Defined Benefit scheme for employees who transited into the Defined Contributory Scheme, he said.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Business

Peter Obi Advocates for Full Government Backing of Dangote’s $21bn Refinery Project

Published

on

Peter G. Obi

Peter Obi, a prominent Nigerian politician and public figure, has called for unwavering support for the Dangote Refinery amid recent conflicts between Dangote Industries and government agencies.

In a passionate appeal, Obi said the current disputes extend beyond political and personal differences, touching upon the broader interests of Nigeria’s economy and its future prosperity.

In his statement on X.com, Obi highlighted the refinery’s immense potential to drive economic growth and create employment opportunities.

With an estimated annual revenue potential of approximately $21 billion and the capacity to generate over 100,000 jobs, the Dangote Refinery represents a cornerstone of Nigeria’s industrial advancement and economic stabilization.

“The recent challenges faced by Dangote Industries should not overshadow the vital role this enterprise plays in our national economy,” Obi asserted.

“Alhaji Dangote’s contributions are monumental, and it is essential that we rally behind his ventures, particularly the refinery, which is set to make a significant impact on our fuel crisis and foreign exchange earnings.”

The refinery, with its strategic importance, stands as a beacon of hope for Nigeria’s fuel supply and overall economic development.

It is poised to address long-standing issues in the energy sector, provide substantial revenue streams, and enhance the country’s economic resilience. Given these benefits, Obi stressed that any actions hindering the refinery’s operation would be counterproductive.

Obi also commended Alhaji Dangote for his remarkable achievements across various sectors, including cement, sugar, salt, fertilizer, infrastructure, and more.

“Alhaji Dangote embodies patriotism and commitment to Nigeria’s growth. His extensive industrial activities are not only a testament to his entrepreneurial spirit but also a vital contribution to Nigeria’s economic landscape,” he added.

Despite the challenging business environment, Dangote’s diversified industrial investments demonstrate a commitment to Nigeria’s industrialization and job creation.

Obi urged the Federal Government and its agencies to offer full support to Dangote Industries, recognizing the broader economic benefits and the positive impact on national welfare.

“The success of Dangote Industries is intrinsically linked to the success of Nigeria and Africa as a whole. We cannot afford to let such a crucial enterprise falter,” Obi warned. “Every sensible and patriotic government should view enterprises like Dangote Industries as national treasures that deserve robust support and protection.”

Obi’s appeal underscores the critical need for collaboration between the government and private sector leaders to ensure the successful operation of key projects like the Dangote Refinery.

Continue Reading

Business

Dangote Accuses NNPC and Oil Traders of Secret Operations in Malta

Published

on

NIGERIA-HEALTH-EBOLA-WAFRICA

Aliko Dangote, chairman of Dangote Industries Limited, has leveled serious allegations against personnel from the Nigerian National Petroleum Company (NNPC) Limited and certain oil traders.

Speaking at a session with the House of Representatives, Dangote claimed that these parties have established a blending plant in Malta, raising concerns about the integrity of Nigeria’s fuel supply.

Dangote described the blending plant as lacking refining capability, instead focusing on mixing re-refined oil with additives to produce lubricants.

“Some of the terminals, some of the NNPC people, and some traders have opened a blending plant somewhere off Malta,” he stated.

He emphasized that these activities are well-known within industry circles.

Addressing the drop in diesel prices, Dangote argued that locally produced diesel, with sulfur content levels of 650 to 700 parts per million (ppm), is superior to imported variants.

He linked numerous vehicle issues to what he described as “substandard” imported fuel.

He called for the House of Representatives to set up an independent committee to investigate fuel quality at filling stations.

“I urge you to take samples from filling stations and compare them with our production line to inform Nigerians accurately,” Dangote insisted.

The accusations come amid an ongoing dispute between the Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Farouk Ahmed, NMDPRA’s chief executive, had previously claimed that local refineries, including Dangote’s, were producing inferior products compared to imports.

Also, the House of Representatives has initiated a probe into allegations that international oil companies are undermining the Dangote Refinery’s operations.

In response to the escalating tensions, Heineken Lokpobiri, the Minister of State for Petroleum Resources, intervened by meeting with key stakeholders including Dangote, Ahmed, and other top officials from the Nigerian petroleum regulatory bodies.

The discussions aimed to address claims of monopoly against Dangote, which he has strongly denied, and to ensure that all parties operate transparently and fairly.

This development highlights the complex dynamics within Nigeria’s oil industry. The allegations and subsequent investigations could impact market stability and investor confidence.

Continue Reading

Business

Africa’s Richest Man, Aliko Dangote Ready to Sell Refinery to Nigerian Government

Published

on

Dangote refinery

Aliko Dangote, Africa’s wealthiest entrepreneur, has announced his willingness to sell his multibillion-dollar oil refinery to Nigeria’s state-owned energy company, NNPC Limited.

This decision comes amid a growing dispute with key partners and regulatory authorities.

The $19 billion refinery, which began operations last year, is a significant development for Nigeria, aiming to reduce the country’s reliance on imported fuel.

However, challenges in sourcing crude and ongoing disputes have hindered its full potential.

Dangote expressed frustration over allegations of monopolistic practices, stating that these accusations are unfounded.

“If they want to label me a monopolist, I am ready to let NNPC take over. It’s in the best interest of the country,” he said in a recent interview.

The refinery has faced difficulties with supply agreements, particularly with international crude producers demanding high premiums.

NNPC, initially a supportive partner, has delivered only a fraction of the crude needed since last year. This has forced Dangote to seek alternative suppliers from countries like Brazil and the US.

Despite the challenges, Dangote remains committed to contributing to Nigeria’s economy. “I’ve always believed in investing at home.

This refinery can resolve our fuel crisis,” he stated, urging other wealthy Nigerians to invest domestically rather than abroad.

Recently, the Nigerian Midstream and Downstream Petroleum Regulatory Authority accused Dangote’s refinery of producing substandard diesel.

In response, Dangote invited regulators and lawmakers to verify the quality of his products, which he claims surpass imported alternatives in purity.

Amidst these challenges, Dangote has halted plans to enter Nigeria’s steel industry, citing concerns over monopoly accusations.

“We need to focus on what’s best for the economy,” he explained, emphasizing the importance of fair competition and innovation.

As Nigeria navigates these complex issues, the potential sale of Dangote’s refinery to NNPC could reshape the nation’s energy landscape and secure its energy independence.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending