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Ex-Perm Secs Demand Implementation of Harmonised Pension

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pension funds - Investors King
  • Ex-Perm Secs Demand Implementation of Harmonised Pension

The Council of Retired Federal Permanent Secretaries has written to the Accountant-General of the Federation, Alhaji Ahmed Idris, demanding the implementation of the harmonised pension for retired Heads of Service and Permanent Secretaries.

It requested the AGF’s intervention to ensure that the payment for December, 2018 reflected the harmonised amount of N1,137,000 for each retired Federal Head of Service and N1,075,274 for each retired Federal Permanent Secretary.

The CORFEPS in a letter dated December 6,2018, signed by its secretary, Chief Japheth Nwosu, asked the AGF to commence the payment of the new pension from this month, noting that the Minister of Finance had approved the harmonisation of the payment to retired Heads of Service and Permanent Secretaries with effect from July 2018, in accordance with existing policy and law.

It explained that up to June 30th, the Pension Transitional Arrangement Directorate had paid N848,750 monthly to all retired Permanent Secretaries, while serving Permanent Secretaries received N1,075,274.63. The CORFEPS noted that earlier this year, the Office of the Head of the Civil Service of the Federation took over the payment of the retirement benefits of all retired Heads of the Civil Service of the Federation and Federal Permanent Secretaries.

Hitherto, it said, PTAD which was set up to cater to the Defined Benefits Scheme pensioners had also been paying the Contributory Pension Scheme up to June 30, 2018. But after obtaining the approval of the Minister of Finance, the letter explained that PTAD was directed to release the data of all retired Federal Heads of Service and Permanent Secretaries to OHCSF for their pension to be paid through the Integrated Payroll and Personnel Information System platform.

It pointed out that Permanent Secretaries were paid their last salaries as pension for life, which from 2013 had been approved to be the monthly salaries being paid to serving Permanent Secretaries, just like the case of retired Generals. The association noted that there was no difference in gross pay between a serving Permanent Secretary and a retired Permanent Secretary, hence the directive by the HCSF to unify the pay-points in one location.

The CORFEPS, however, disclosed that the harmonisation gave rise to budgetary shortfall and in the circumstance, the Ministry of Finance through the Cash Management Department requested the Office of Accountant-General of the Federation for the amount of the shortfall since September with a view to augmenting the quantum of funds for pension from relevant Service Wide Vote. It noted that the OAGF had not provided the required response. The letter to the AGF read, “Your urgent intervention is therefore required to ensure that the augmentation is carried out so that the pay for December 2018 reflects the harmonised amount of N1,137,000 for each retired Federal Head of Service and N1,075,274 for each retired Federal Permanent Secretary. “If this is not done and the present level of pay goes into January 2019, it means throughout the first half of the year (2019) ,the pensioners will continue to receive the lower amount currently being paid to all of them.”

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.

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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

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Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

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As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

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Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

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Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

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