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PenCom Transfers N10.20bn Into RSAs Contributors Scheme of NSITF in Nine Years

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The National Pension Commission (PenCom) has said N10.2 billion has been transferred into the Retirement Savings Account (RSAs) of 142,486 Nigerian Social Insurance Trust Fund (NSITF) Scheme contributors from 2014 to date.

Director-General, PenCom, Mrs Aisha Dahir-Umar, revealed this at an interactive session, organised by PenCom and Nigeria Employers’ Consultative Association (NECA) on CPS for the Organised Private Sector (OPS) in Lagos.

Dahir-Umar, represented by Dr Anyim Nyerere, Commissioner for Technical, PenCom, said this was in compliance with the commission’s responsibility of supervising the transfer, following the enactment of the Pension Reform Act (PRA) 2014.

“In order to ensure that all contributors under the NSITF scheme have their NSITF contributions transferred to their RSAs, the commission had severally featured advertorials requesting NSITF contributors to apply for the transfer of their contributions.

“PenCom wishes to implore all employers to encourage their employees, who have contributed to the NSITF scheme, to liaise with their PFAs and in particular Trustfund Pensions for guidance on how to have their contributions transferred to their RSAs,” she said.

According to her, the number of Retirement Savings Accounts (RSAs) under the Contributory Pension Scheme (CPS) as at the end of third quarter 2023, stood at 10 million.

Dahir-Umar said that the size of the pension Asset Under Management (AUM) amounted to N16.76 trillion in the period under review.

The director-general said that the programme was initiated to enlighten OPS on the current developments and challenges in the implementation of the Pension Reform Act (PRA) 2014.

“Obviously the pension industry is one of the fastest-growing financial sectors in Nigeria.

She said that PenCom had deployed the Enhanced Contributors Registration System (ECRS) and Data Recapture Exercise (DRE).

The director-general stated that this mandatorily requires all RSA holders, who joined the CPS prior to July 1, 2019, to update their information with their respective Pension Fund Administrators (PFAs).

She charged RSA holders who are yet to approach their PFAs for data recapture to do so.

She assured the OPS that the commission would continue to ensure robust social dialogue with NECA in the interest of all stakeholders under the CPS.

According to her, the commission will always support NECA to champion programmes that will ensure the successful implementation of the CPS in Nigeria.

Mr Bala Babangida, Head, Department of Compliance and Enforcement, PenCom, said that compliance in the industry includes opening of RSA with a PFA by employees.

Babangida added that employers must also ensure monthly deduction and remittance of pension contributions and provision of Group Life insurance policy for their employees

Mr Obiora Ibeziako, Head, Department of Benefit and Investment, PenCom, listed the basic objectives of pension investments to include safety, liquidity and fair return.

Ibeziako added that the general principles of the pension scheme involved consultation, prudent, effective surveillance and regulation.

Director-General, NECA, Mr Adewale Oyerinde, said that the deliberation would give room for more improvement and development in the pension sector.

JUDICIARY

LG Autonomy: Supreme Court Judgment Meets Constitutional Order- Edeoga

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 Former Governorship Candidate of the Labour Party(LP) for the 2023 elections in Enugu State, Hon Chijioke Edeoga has hailed the Thursday ruling of the Supreme Court, which granted financial autonomy to the nation’s 774 LGAs.

Edeoga, in reaction to the judgment said in a  statement in Abuja that the judgment was in line with the existing constitutional order.

“While it is suspected that the judgment may not meet the approval of advocates of political restructuring in Nigeria, there is no doubt that it accords with the demands of the existing constitutional order.

“The violation of the provisions of the Nigerian Constitution of the Federal Republic of Nigeria by governors of Nigerian states has been going on with flagrant impunity for many years and under different administrations since 1999.

“Local Government Areas, recognized in the Nigerian Constitution as the third tier of government and the one closest to the people, have been deprived of the funds needed for grassroots development, thus existing at the mercy of state governors,” he  remarked.

He regretted that over the years, state governors have made local government funds their cash cows, receiving and dispensing as they deemed fit, and without regard to the development imperatives of the councils, their employees, and their respective peculiar development challenges.

“This abuse has given rise to situations where local councils are forced to queue on a strange breadline, where governors favour some local governments while sidelining others.

“The offices of the Economic and Financial Crimes Commission (EFCC) and other anti-corruption agencies are stacked with files bursting with evidence of abuse of local council funds by state governors, whose prosecution has been hindered by red tape and other inexplicable reasons” he noted.

The former Governorship candidate recalled that during  his campaign for the Governorship of Enugu State, he highlighted the deplorable management of local council funds in Enugu State and vowed that council funds would be sacrosanct if he won the election.

He said as a former local government Chairman, he knew the importance of those funds and the leverage they provide for rural development, employment generation, and economic empowerment. 

 “My belief is that rather than treat council funds as a source of free money as most state governors see them, I would ensure easy and direct access to it by council chairmen as a means of ensuring that local government councils become complementary to the state government’s development efforts,” he stressed. 

He said his intention upon assumption of office was to empower Local councils and noted that the judgment will minimize the tendency of some governors and state officials to favour their local governments of origin while sidelining others.

“I am particularly relieved that the administration of President Bola Tinubu has taken this rare positive step towards restoring the glories of local administration in Nigeria. “Those of us in the Enugu State chapter of the Labour Party see this as a step in the right democratic direction and must single out President Tinubu and the Attorney General of the Federation, Prince Lateef Fagbemi, SAN, for pursuing this judgement with a single-minded determination and patriotic purposefulness. 

“While we commend the current administration for the rare courage and vision deployed in pursuit of this case, we must also advise against allowing the judgement to form another layer of entry in our Case Laws. Nigerians are excited by the judgement and are looking forward to the restoration it would bring to bear on rural development across the country, and would be displeased if deliberate political, judicial, and institutional efforts are not made to ensure that implementation.”

“This judgement, it must be emphasised, is a PUBLIC INTEREST MATTER and has reignited hope of a possible grassroots development renaissance among the progressive-minded people that are interested in the development of Nigeria and the wellbeing of everyone” he stated.

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Minimum Wage: Labour Rules Out Strike, Awaits Tinubu’s Nod

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By David Torough, Abuja

The Nigeria Labour Congress (NLC) has ruled out strike action earlier scheduled for Tuesday (today) to demand a new national minimum wage.

The NLC President, Joe Ajaero, made this known yesterday during the ongoing International Labour Conference taking place in Geneva, Switzerland.

Ajaero said organised labour cannot embark on strike today because the figures presented by the tripartite committee on minimum wage were with President Bola Tinubu.

He clarified that the submission of N62,000 as proposed by the government and the organized employers’ body with labour proposing N250,000 does not translate to labour accepting N62,000 as the new minimum wage.

“The tripartite committee submitted two figures to the President. Government and employers proposed N62,000 while labour proposed N250,00o. We are waiting for the decision of the President. Our National Executive Council (NEC) will deliberate on the new figure when it is out.

“We cannot declare a strike now because the figures are with the President. We will wait for the President’s decision.

“During the tenure of the immediate past President, the figure that was proposed to him was N27,000 by the tripartite committee but he increased it to N30,000. We are hopeful that this President will do the right thing. The President had noted that the difference between N62,000 and N250,000 is a wide gulf,” he said.

The NLC president also berated state governors under the umbrella body of the Nigerian Governors’ Forum for rejecting the N62,000 minimum wage proposal.

“How can any governor say he cannot pay? They cannot also be calling for the decentralization of the minimum wage.

“Are there wages decentralized? Governors whose states are not contributing a dime to the national purse and who generate pitiable Internally Generated Revenue (IGR) are collecting the same amount as governors whose states are generating billions of dollars into the FAAC.

“They should decentralize their salaries and emoluments first.

“So, where is the governor of Edo state, Godwin Obaseki getting his money from? He is paying N70,000 minimum wage. This is the type of governor that should be emulated and not the lazy ones,” he added.

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Labour Suspends Strike over Minimum Wage for One Week

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By David Torough, Abuja

The Organised Labour yesterday suspended its ongoing indefinite strike action for one week over a new national minimum wage and reversal of the recent electricity tariff hike.

A joint National Executive Council (NEC) meeting of both Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) has approved to relax the industrial action for one week with immediate effect.

It was gathered that the development followed a tentative agreement reached between the Federal Government and the Organised Labour on the new national minimum wage on Monday night with a resolution to further engage daily for the next one week at the level of the Tripartite Committee on National Minimum Wage until a final agreement is reached.

The Federal Government had assured the Labour leaders that President Bola Tinubu was committed to paying a new monthly minimum wage above the initial offer of N60,000.

This was disclosed late Monday night at the end of a marathon meeting convened by the Secretary to the Government of the Federation (SGF), George Akume, in furtherance to the negotiation by the Tripartite Committee on National Minimum Wage (NMW) and subsequent withdrawal of the Organised Labour from the negotiation table.

Members of the NLC and TUC earlier on Monday embarked on an indefinite nationwide strike to press home their demands for a new national minimum wage and reversal of the recent electricity tariff hike, a development that paralysed activities in both public and private sectors across the country.

In a statement issued at the end of the meeting endorsed by the Ministers of Information and that of Labour and Employment, Mohammed Idris and Nkiruka Onyejeocha, respectively, on the part of the Federal Government, and NLC and TUC Presidents, Joe Ajaero and Festus Osifo, respectively, on the part of the Organised Labour, the meeting agreed on a four-point resolutions as a pathway to ending the ongoing industrial dispute.

“The President, Commander-in-Chief of the Armed Forces, Federal Republic of Nigeria is committed to a National Minimum Wage that is higher than N60,000;

“Arising from the above, the Tripartite Committee is to meet every day for the next one week with a view to arriving at an agreeable National Minimum Wage;

“Labour in deference to the high esteem of the President, Commander-in-Chief of the Armed Forces, Federal Republic of Nigeria’s commitment in (ii) above undertakes to convene a meeting of its organs immediately to consider this commitment; and

“No worker would be victimised as a result of the industrial action,” the resolutions read.

In a statement issued at the end of the meeting endorsed by the Ministers of Information and that of Labour and Employment, Mohammed Idris and Nkiruka Onyejeocha, respectively, on the part of the Federal Government, and NLC and TUC Presidents, Joe Ajaero and Festus Osifo, respectively, on the part of the Organised Labour, the meeting agreed on a four-point resolutions as a pathway to ending the ongoing industrial dispute.

“The President, Commander-in-Chief of the Armed Forces, Federal Republic of Nigeria is committed to a National Minimum Wage that is higher than N60,000;

“Arising from the above, the Tripartite Committee is to meet every day for the next one week with a view to arriving at an agreeable National Minimum Wage;

“Labour in deference to the high esteem of the President, Commander-in-Chief of the Armed Forces, Federal Republic of Nigeria’s commitment in (ii) above undertakes to convene a meeting of its organs immediately to consider this commitment; and

“No worker would be victimised as a result of the industrial action,” the resolutions read.

Tinubu Gives Finance Minister 48 Hours to Present New Minimum Wage Template

Meanwhile, President Bola Tinubu has directed the Minister of Finance, Wale Edun, to come up with the cost Implications on the new minimum wage within two days.

Minister of Information and National Orientation, Mohammed Idris, made this known while briefing State House Correspondents after a meeting the negotiation team had with the president at Aso Rock, yesterday.

“All parties to the negotiation of the new minimum wage would work together with the organised labour to present a new minimum wage for Nigerians in one week.

“All of us will work together assiduously within the next one week to ensure that we have a new wage for Nigeria that is acceptable, sustainable and also realistic.”

Idris also disclosed that the President had given a marching order that all those who have negotiated on behalf of the Federal government and all those who are representatives of organised private sectors, the sub nationals to come together to have a new wage award that is affordable, sustainable and realistic for Nigerians

The minister said Tinubu was committed to accepting the resolutions of the tripartite committee on the new minimum wage.

“We were all there to look at all issues, and the president has directed the minister of finance to do the numbers and get back to him between today and tomorrow so that we can have figures ready for negotiation with labour. Let me say that the president is determined to go with what the committee has said, and he’s also looking at the welfare of Nigerians.

“The government is not an opponent of labour discussions or wage increases.”

The minister said the president directed that the committee should work together to give Nigerians an “affordable, sustainable, and realistic” minimum wage.

“All of us will work together assiduously within the next one week to ensure that we have a new wage for Nigeria that is acceptable, sustainable, and also realistic,” he said.

Secretary to the Government of the Federation, George Akume, had summoned labour leaders to an emergency meeting after the strike which crippled economic activities on Monday.

At the end of the meeting, it was announced that the Federal Government had offered to pay higher than N60,000 minimum wage.

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