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Consistent Rise in Unemployment Forced Pension Account Holders to Withdraw N14.79 Billion in 10 Months

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The rising unemployment number due to the COVID-19 pandemic has forced many pension account holders to start withdrawing part of the funds.

According to the report from the National Pension Commission, it was revealed that pension account holders who lost their jobs have continuously approached their Pension Funds Administrators to withdraw parts of their funds from their Retirement Savings Accounts.

The Pension Reform Act 2014, allows a worker who lost his job to access 25 percent of his RSA if the individual fails to get another paid job after four months.

In the first-quarter report, PenCom said, “During the quarter under review, the commission granted approval for the payment of N4.31bn to 8,221 RSA holders who were under the age of 50 years and were disengaged from work but unable to secure another job within four months of disengagement”.

The second-quarter report shows that the commission granted another approval for payment of N2.56bn to 4,668 RSA holders who were under the age of 50 years and were disengaged from work but unable to secure another job within four months of disengagement.

The commission third-quarter report further explained that “During third quarter 2020, the commission granted approval for the payment of N8.1bn to 13,569 RSA holders who were under the age of 50 years and were disengaged from work but unable to secure jobs within four months of disengagement”.

Mr. Peter Aghaowa, the Head of Corporate Communications, PenCom, said that in order to lessen the hardship faced by workers who lost their jobs as a result of the negative impact of the global health pandemic, an account holder who lost his/her job would be granted approval to withdraw a quarter of the savings in their Retirement Savings Accounts if he/she fails to secure a paid job after four months.

Mr. Peter said, “The contributory pension was designed to allow access to 25 percent of retirement savings balance in a situation whereby you lose your job. “So if you lose your job, after four months you can access 25 percent of your RSA contribution”.

Following the launching of the Transfer window for RSA account holders, it was revealed that over 2,100 account holders have submitted applications to change their Pension Fund Administrators. This happened less than two weeks after the transfer window was officially opened on November 16, 2020.

Aghahowa explained that this new development would enhance competition and improve service delivery in the pension industry.

He also said that RSA account holders will now have the right to determine the PFAs that will manage their account and also change to another pension company at most ones in a year

Mr. Polycarp Anyanwu, Head of ICT at PenCom said, “Over 2,100 applications were submitted and received by the commission between 16th and 30th of November, 2020.”

He also noted that most RSA account holders were not satisfied with the current service of their PFAs and hence the need to change to a better one.

Mr. Wale Odutola, the President of Pension Fund Operators Association of Nigeria, who is also the managing director/Chief Executive Officer, ARM Pension PFA, said that pension fund operators had executed the necessary requirement by upgrading their IT systems to enhance seamless pension account transfer.

He further said that the principal aim is to grow the pension industry, ensure that pension funds have a bigger impact on the economy, and give good investment returns to stakeholders.

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Nigeria Corporations Paid N238.1 Billion Income Tax Via E-channels in 2020

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Nigeria Corporations Paid N238.1 Billion Income Tax Via E-channels in 2020

Companies in Nigeria have started embracing electronic payment platforms established to ease the tax payment process and facilitate accountability.

According to the National Bureau of Statistics (NBS), businesses operating in Nigeria paid the highest amount of taxes through electronic channels in five years in 2020.

The statistics office puts the total amount paid in Company Income Tax (CIT) through the electronic channels at N238.1 billion in 2020.

The amount represents 16.9 percent of the total CIT paid in 2020 as more businesses adopt safer online payment methods.

NBS noted that payments were done through E-transact, E-tax pay and Remita.

However, a further breakdown of the report showed taxes fell by 13.5 percent from N1.63 trillion in 2019 to 1.41 trillion in 2020 due to the lockdown that crippled business activities in the first half of the year.

Taxes paid by Nigerian owned companies declined by 2.78 percent from N813.17 billion in 2019 to N790.58 billion in 2020. While taxes paid by international companies declined from N615.52 billion achieved in 2019 to N388.77 billion in 2020.

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Aliko Dangote Remains Africa’s Richest Man With $12.1 Billion Net Worth -Forbes

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Aliko Dangote Remains Africa’s Richest Man With $12.1 Billion Net Worth -Forbes

Nigerian industrialist, Aliko Dangote, is Africa’s richest person for the tenth year in a row.

In the Forbes Africa latest billionaires list, Dangote’s total net worth stood at $12.1 billion, a $2 billion increment when compared to last year. Thanks to the 30 percent increase in the price of Dangote Cement share.

Nassef Sawiris of Egypt followed Dangote with $8.5 billion net worth with the majority of his investments coming from construction and other investments.

In third place was Nicky Oppenheimer of South Africa with an $8 billion total net worth.

Mike Adenuga and Abdulsamad Rabio, the two Nigerians, came fifth and sixth with $6.3 billion and $5.5 billion net worth, respectively.Forbes Africa's billionaires list

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Portland Paints, Chemical and Allied Products Plc Agreed to Merge

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Portland Paints

Portland Paints, Chemical and Allied Products Plc Agreed to Merge

Portland Paints and Products Nigeria Plc and Chemical and Allied Products Plc have agreed to merge, according to the latest statement from both companies.

In a statement released through the Nigerian Stock Exchange, the Board of Directors of CAP said we are “pleased to inform you that following discussions and negotiations, the Boards of CAP and Portland Paints have reached an agreement to undertake a merger between both entities (the “Merger” or the “Proposed Merger”).

Accordingly, we “hereby present to you the terms and benefits of the Proposed Merger for your consideration and seek your support and approval to effect the Proposed Merger.

“The Proposed Merger presents a compelling opportunity to create significant value for shareholders of CAP and achieve the company’s strategic growth objectives as a larger company with a broader product portfolio, more corporate owned brands and diversified revenues.

“The resultant entity is also expected to benefit from enhanced distribution capabilities in addition to economies of scale and operational efficiencies.”

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