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Lawmaker Wants Transparency In Pension Fund Management

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Speaker, House of Representatives, Hon. Femi Gbajabiamila yesterday in Abuja called for integrity and transparency in the management of pension funds.
Gbajabiamila made the call during a three-day public hearing/investigation held for stakeholders on the non-remittance of pension contributions by the employers.
The public hearing was also to investigate delays of payment of pension entitlements to retirees by pension fund administrators, non adherence, and compliance to the provisions of the pension reform Act 2014 by relevant government authorities.
The speaker, represented by the Chief Whip of the House, Hon. Mohammad Monguno, said the Contributory Pension Scheme could boost the economy if well managed.
Gbajabiamila said the smooth operation of the scheme was important so that workers would not retiree and find it difficult to access their retirement benefits.
The Chairman, House of Representatives Committee on Pensions, Hon. Kabiru Rurum said the public hearing was aimed at finding solutions to the problems confronting the scheme.
He said the national assembly was concerned with alleged mismanagement of pension funds and ill-treatment of retirees.
The acting Director-General of the National Pension Commission (PenCom), Hajiya Aishat Umar, attributed delay in the payment of pensions to federal government employees to the nonpayment of accrued rights.
“There are three components of the retirement savings account which are contributions, accrued rights and the yield on investment, they are to be consolidated before payment to retirees,’’ Umar said.
She said the number of contributors grew from 8. 14 million to 8.89 million as at December 2019.
Umar added that the total pension fund assets grew from 8. 64 trillion as at December 2018, to 10. 22 trillion as at December 2019, with an average monthly contribution of N131.69 billion in 2019.
She disclosed that more than 308, 298 people had retired under the scheme as at December 2019 and were currently being paid pension.
Umar said there were 957 Federal Government Ministries, Departments and Agencies (MDAs) under the CPS, comprising of 845 treasury funded MDAs and 112 self funded MDAs.
“The Federal Government was yet to implement the new rate of pension contributions in respect of employees of treasury funded MDAs from a minimum of 7.5 per cent to 10 per cent.”
According to Umar, there are 236, 676 private companies under the Scheme.
She said that the commission had developed a framework for recovering unremitted pension contributions with penalty from defaulting employers.
“The framework entails review of pension records of employers to determine unremitted pension contributions as well as incidences of late remittances.
“The commission had between July 2012, to January 2020 recovered the sum of N17. 054 billion,comprising unremitted principal contributions of N8. 644 billion and penalties of N8. 409 billion from 655 employers.”
The acting director-general said that the commission had a framework for the regime of sanctions and penalties for securing compliance with the Pension Reform Act ( PRA) 2014.
“The application of the sanctions regime has proved very useful in ensuring private sector compliance.
“From inception of the CPS to December 2019, the commission has received 3, 595 complaints on non- remittance on pension contributions and 2, 646 were resolved while the remaining 949 complaints are at various stages of resolution,” she said.
Umar said that not all states in the country had implemented the Scheme.
She also said that the commission’s principal objectives were to regulate, supervise, and ensure the effective administration of pension matters and retirement benefits in the country.
The commission is also empowered to establish uniform set rules, regulations, standard for the administration and payment of retirement benefits.

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Bayelsa Begins EIA On 60MW Power Plant

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The Bayelsa Electricity Company Ltd, in collaboration with the Federal Ministry of Environment, on Friday, commenced the Environmental Impact Assessment (EIA) for the proposed 60-megawatt (MW) power plant.
The Tide’s source reports that the power plant project, led by the Bayelsa State Government, is in Elebele, on the outskirts of Yenagoa, the state capital.
The source also reports that the State Governor, Douye Diri, had announced plans to establish an independent power project to end the state’s reliance on the national grid and provide an uninterrupted power supply across Bayelsa.
The Director of Operations at the Bayelsa Electricity Company Ltd., Steve Bubagha Jnr., conducted the Minister of Environment, Balarabe Lawal, and his team around the project site.
Mr. Bubagha explained that the company planned to install a 60MW “plug and play” gas-fired turbine that would receive gas feed from the Oando gas manifold in Elebele.
He said the land area for the project is approximately 5.8 hectares, with 2.1 hectares currently being used.
“The Independent Power Plant is officially known as the ‘Yenagoa Power Project. This is a ‘Plug and Play’ Gas Turbine.
“What we mean by ‘plug and play’ is that the turbine is already set to be installed upon arrival from the manufacturers.
“We are only working on other components, so the turbine should be running in less than two years, or at most, in two years”, Bubagha explained.
Following the site visit, the environment minister, represented by Adimchinobi Okereke, emphasised that the purpose of the visit was to ensure the EIA process adhered to standard guidelines before granting final approval to the project.
He lauded the state government for initiating the project, noting that once completed, it would benefit Bayelsa and contribute to solving Nigeria’s power supply challenges.
Azibola Inegite, a professor and Dean of the Faculty of Science at Niger Delta University, and the EIA consultant for the project, assured that international best practices would be followed in conducting the EIA.
He emphasised that the EIA was essential for the successful execution of impactful land and environment-related projects.
On his part, the technical adviser on Print Media/Public Affairs to Governor Diri, Wisdom Ikuli, commended the Governor for his vision in executing the project.
He stated that the 60MW power plant would help reduce the state’s frequent power outages and boost business growth, thereby accelerating industrialisation.
A key part of the minister’s visit was the “Stakeholders Engagement Scoping Workshop for Environmental Impact Assessment of Proposed Gas Powered Plant and Gas Delivery Pipeline in Bayelsa State”.
The workshop brought together stakeholders from Elebele, whoch include the host community, and Kpansia, an impacted community in Yenagoa Local Government Area.

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Firm Unveils Solutions To Oil Logistics Challenges

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A firm, Fortune Global Shipping and Logistics Limited, said it has concluded plans to unveil an excellent and cost-effective logistics solution for oil and gas logistics, project cargo, customs clearance, consolidation, and construction, among others, in Lagos State.
Announcing this in a statement on Friday, the company said the initiative would be unveiled during the 2025 Sub-Saharan Africa International Petroleum Exhibition and Conference.
It stated that the event is billed to take place in Lagos this week.
SAIPEC is an annual global event which focuses on harnessing a sustainable African energy industry through partnerships.
Fortune Global explained that the exhibition promises to engage with other key industry stakeholders, decision-makers, and experts across Sub-Saharan Africa’s energy supply and value chain.
“We invite you to experience more and find out about Fortune Global’s latest innovations in oil and gas logistics. Connect with Fortune Global Shipping and Logistics Limited at the Exhibition Booth N21, Eko Convention Centre, in Lagos”, the statement stated.

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Nigeria, Still Africa’s Largest Economy – World Bank

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Nigeria remains the largest economy in Africa going by Gross Domestic Product (GDP), in spite of the challenges faced by yhe country’s private sector.
World Bank’s Country Director for Nigeria, Dr. Ndiame Diop, who confirmed this at the Country Private Sector Diagnostic (CPSD) and Stakeholder Engagement in Abuja, Friday, said while Nigeria receives far less Foreign Direct Investment (FDI) than its potential warrants, especially in comparison to countries like Indonesia and South Africa, it continues to hold its position as Africa’s biggest economy.
He said the CPSD report, set to be released in the coming weeks, will reveal the impact of private sector constraints on economic growth.
Diop noted that if targeted actions were taken to remove these obstacles, Nigeria’s economic potential would be significantly enhanced.
He explained that the current macroeconomic reforms have created a favourable environment for such changes.
He cited the country’s recent economic stabilization measures, particularly exchange rate market adjustments and improved access to foreign exchange, as critical steps that have already enhanced investment conditions.
The Country Director outlined four key sectors where strategic reforms could unlock massive investment and job creation.
He stayed that in the Information Communication Technology (ICT) sector, investment opportunities worth up to $4 billion could be realized, potentially creating more than 200,000 jobs.
In agribusiness, reforms could unlock $6 billion in investment and generate over 275,000 jobs.
The solar photovoltaic (PV) industry holds the potential for $8.5 billion in investment and more than 129,000 jobs, while the pharmaceutical sector could attract $1.6 billion and create more than 30,000 to 40,000 jobs.
For the ICT sector, he identified the high, unpredictable, and inconsistent right-of-way fees, levies, and informal charges, comprising 30 to 70 per cent of broadband rollout costs, as a major barrier.
According to him, addressing these regulatory inconsistencies would be a game-changer for broadband expansion.
He acknowledged that the National Economic Council has recognized this issue and that progress is being made through a World Bank-supported initiative.
He also noted challenges such as vandalism, limited financing for rural broadband expansion, and the need for competitive access to wholesale fiber.
Dr. Diop further noted that efforts are underway in collaboration with government agencies to resolve these issues, and the World Bank, the International Finance Corporation (IFC), and private investors are prepared to support broadband infrastructure development.
On solar power, Diop described Nigeria’s energy sector as difficult but noted that renewable energy access, particularly solar PV, has been a bright spot.
He explained that private sector investment in renewable energy has historically been hindered by high costs and unviable tariffs.
However, blended finance mechanisms supported by the World Bank and IFC have helped bridge this gap, making off-grid solutions more viable.
He noted the DES project, which aims to connect 17.5 million households and businesses to solar power, as evidence of growing private sector interest.
While the solar industry is expanding, he stressed that reforms to improve Nigeria’s grid electricity supply remain crucial for industrialization.
On her part, the Regional Director for Central Africa and Anglophone West Africa at the IFC, Dr. Dahlia Khalifa, stressed the importance of consistency in regulatory policies, particularly in customs duties and revenue agency fees.
She noted that unpredictability discourages private sector investment, as businesses rely on stable regulatory environments for strategic planning.

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