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2016 Budget: Need For Thorough Scrutiny

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One feature of a corporate
plan is a series of budgets that translate country, state, local government or company intentions into a series of assignment and provide the money to carry them out. The Oxford Advanced Lerner’s Dictionary defines budget  as the money that is available to a person or an organization and plan of how it will be spent over a period of time. Since a budget extends over a period of time, it represents a flow of assignments rather than a stationary approach, and changes can be made rather quickly, especially if the budgets are reviewed monthly or quarterly.
There are two main types of budgets which include capital and expense. Capital spending is investment, merely a change in the form in which assets are held. The money a government or company spends to carry on its day-to-day activities or business, on the other hand, represents the actual out-of-pocket costs that must be recovered through internally generated revenue or sales during the budget year.
In the government circle, budgets are targeted to capture all the projects and activities proposed for the year, hence we have the capital expenditure, recurrent expenditure and the targeted revenue. In every budget, some scheme of priorities for projects must be adopted and there are some projects that simply have to be undertaken regardless of the economic calculations, since they must be budgeted for if the country should live up to its responsibilities or expectations.
There are projects required to meet the provisions of the law and there are numerous regulations by local, state and federal governments relating to security, defence, employment and employees’ welfare, among others that may necessitate new investment or expenditure. If there is pressure on government to tackle a problem that affects generality of the citizenry, it may have to spend a great deal of money for solution even though the project brings in no return in  the conventional sense. Generally, when a government is compelled to restrategise, it has to incorporate improvements.
The controversy that trailed the 2016 Budget would have been avoided if those who prepared it for the President before presentation to the National Assembly were careful and displayed professionalism in that craft. When President Muhammadu Buhari assumed office, on being sworn-in, he told Nigerians that a team of technocrats had been assembled to affect the change philosophy of the ruling All Progressives Congress (APC).
In fact, the circumstances that surrounded the 2016 Budget that was presented to the Senate on Tuesday, December 23, 2015 is a clear indication and manifestation  of incompetency from the Presidency to the Senate. At no time in the history of Nigeria that a documented budget proposal was pronounced missing or withdrawn from the Senate after presentation. A lot of Nigerians were disgusted and disappointed with the intricacies that contrived the budget.
From a 2-week recess, the Senate resumed plenary without the 2016 Budget on the order paper for debate amid heightened curiosity, as to what might have gone wrong. Some senators allged that the budget was nowhere to be found at the National Assembly with other fillers that the budget documents that were laid before the Senate by President Buhari early December 2015 had not been duplicated for distribution to Senators and members of the House of Representatives due to paucity of funds. There was also a wide speculation in some quarters that the documents had been withdrawn or got missing from the Senate. Some lawmakers said they were suspicious that the Presidency might have colluded with the management of NASS to quietly withdraw the documents after detecting some discrepancies in them.
One of them likened it to a kind of national embarrassment. His words, “can you imagine this kind of national embarrassment? Documents that were presented to us with fanfare have been stolen. This is unbelievable as it has not happened since history of Nigeria”. Senators of the PDP accused the Presidency of being behind the theft of the documents, an accusation rejected by APC, who said it was too early to speculate.
On his part, Senate President Abubakar Bukola Saraki later denied disappearance of the budget but disclosed that copies of a version different from the 2016 Appropriation Bill as originally laid by Buhari had been served to senators by the Special Adviser to President Buhari on NASS Matters, Senator Eta Enang. According to him, it was alteration of the doctoring of the original documents, pointing out that the finding of the Committee on Ethics, Privileges and Public Petitions on investigations surrounding the 2016 Appropriation Bill was that Senator Eta Enang printed copies on the Bill and brought to the Senate was different from the version presented by Mr. President.
A former National Chairman of the APC, and one-time governor of Osun State, Bisi Akande while commenting on the 2016 budget controversy in an interview, lampooned the Senate leadership for what he described as an act of indiscipline. He said that his party was mindful of the consequences of allowing wrong people to be at the helm of affairs which was the reason the party wanted disciplined individuals to lead the Senate.
“Nigeria’s budget is huge document and wonders how such a document could be missing in the Senate”, Akande said, adding “the development is a fallout of indiscipline that brought the current leadership of the Senate into the position and as you know, that was not the choice of our party”.
The Presidency had after presenting the budget discovered that some of the figures proposed were increasingly high through a letter addressed to Bukola Saraki and Dogara of the NASS and House of Representatives respectively. The report revealed that the old budget contained major omissions like absence of allocation for the second Niger Bridge while a large sum was allocated for line items which had now been reviewed.
Following the purported missing of the documents, the Senate President Saraki met with President Buhari at the Presidential Villa.
It is traditional that once the budget is laid, it would be referred to the joint  Committee on Finance and Appropriations for section by section analysis. That the differences spotted by the Senate “do not really affect the substance of the budget to the extent that there is serious breach” is not enough to believe that all is well with the budget, even though the Senate went ahead to deliberate on it.
The preparation of the 2016 Appropriation Bill was a litmus test of the Presidency’s efficiency, but the controversy that trailed it on presentation to the Senate shows that no thorough work was done. The criticisms and revelations that followed or emerged in the process and the carelessness of the NASS management in securing the original copy laid before the Senators by President Buhari amply signify that the budget is not perfect. Before the controversies that beclouded the budget, there had been some hard knocks on it in some quarters.
One of such criticisms came from a renowned Nigerian Economist, Professor Pat Utomi, who described the 2016 national budget as ‘a joke’. President Buhari had presented a budget estimate of N6.08 trillion before a joint session of the National Assembly on Tuesday, December 22, 2015. Speaking on Channels Television’s Sunrise Daily, Professor Utomi said, “Putting it in a very awkward position, I consider the budget process a joke”. He said the issue was not about making luxurious budget but argued that the major deterrent was always implementation”.
Utomi emphasized, “we somehow do not have the discipline of the budget process, we go through budget as public relations exercises because they are supposed to be done and decision makers go ahead to do whatever they want to do” . Proffering solutions to the problem of budget implementation in the country, he said “the goal is to achieve an execution premium, but if those who are responsible for the budget really had no plan whatsoever to follow it, then, you are wasting your time”. “I think what has happened to us is that we got to a point of disconnect between the leadership elite, the political class, the bureaucratic elite and development aspirants of the Nigerian people. The major reason the budget is not working in Nigeria is leadership”, Utomi said.
Indeed, there is low energy in the leadership of this country as they are not leading in the right direction. The country is dealing with a huge financing gap, no doubt, and we cannot pretend that all is well, but if we do, then, “we will run into an economic spiral”.
Also bemoaning the 2016 budget, the PDP said, “By all standards, the budget, the first major economic policy outing of this present government, is completely unrealistic and duplicitously embellished with impractical predictions, a development that confirms fears by economy watchers and investors that this administration is obviously ill-equipped for governance”. The PDP, therefore, advised President Buhari to once again involve experienced and well-tested hands in the management of the economy, and budgeting processes.
A very important type of budget to which countries across the globe are giving increased attention these days is the cash flow budget. A country may estimate a certain amount over the period of a year and find itself in difficulty, even if the estimate is accurate. Money seldom flows in evenly. In the meantime, Nigeria needs money to finance projects and provide the welfare needs of the people and not a bogus budget that is not realizable and implementable. Comparison of performance against budget is one of the best methods of determining whether or not the country is spending more or less than it had planned to, and tracing the reasons for overages and underages or deficit and making any necessary corrections.
Budgets are an excellent tool for both planning and control, although they have their shortcomings. Thus, the budget is usually based on historical trends which may not continue as it may be influenced by what the leadership of the country or state would like to happen or do. Naturally, the leaders are interested in larger money and hopefully budget on the basis that this will materialize, even  though the chances of their doing so are not very great. So, the 2016 budget in its final form must be carefully scrutinized and watched to achieve the best result and proper implementation.

 

President Muhammadu Buhari

President Muhammadu Buhari

Shedie Okpara

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Vocational Education And Nigeria’s Economy

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The importance of vocational training to the development of any nation cannot be over emphasised. Technical education experts define vocational education as any form of educational program or course that focuses on teaching the specific skills and knowledge required for a particular job or trade. Unlike traditional academic education, which is often broader and theoretical, vocational training is practical, hands-on, and tailored to prepare individuals for specific careers or industries. They also argue that the dearth of trained vocational and middle-level technical manpower represents a very serious gap in the development of third-world countries, including Nigeria. This argument, perhaps, underscores the Federal Government’s bold move towards educational reforms in Nigeria which includes the inculcation of vocational education into the schools curriculum as a way of equipping students with practical skills and enhancing their employability.
A recent statement released by the National Orientation Agency (NOA), indicated that the government has added 15 vocational subjects to the Basic Education curriculum. These additions which take effect from January, 2025, they said, are designed to promote hands-on learning and better prepare students for the job market. The new subjects include: Plumbing, tiling and floor works, POP installation, Event decoration and management, Bakery and Confectionery, Hairstyling, Makeup, Interior Design, GSM Repairs, Satellite/TV Antenna Installation. Others are: CCTV and intercom installation and maintenance, solar installation and maintenance, garment making, agriculture and processing, which covers crop production, beekeeping, horticulture, and livestock farming (e.g., poultry and rabbit rearing) and Basic Digital Literacy, incorporating IT and robotics.
The former Minister of Education, Prof Tahir Mamman, who earlier hinted on the new curriculum for basic schools during a meeting with stakeholders in Abuja, last October, said under the new curriculum, pupils in basic schools will be required to acquire at least two skills. According to the former minister, “The idea is that by the time children finish school, they should have at least two skills. Students should be able to finish school with a minimum of two skills so that they can have a very productive life. “The basis for the curriculum is the National Skills Framework, and it has been approved. It’s a very big project; it affects all schools in Nigeria, public and private.“Whether in the public sector or private sector, all schools are going to implement it. So, this is already determined. It doesn’t require anybody’s consent or any institution can depart from it.
Speaking on implementation, the Mamman said, “We do not expect comprehensive, full implementation from January because, when you roll out something new, there’s a lot of preparation that has to take place by the schools, acquiring new things, equipment, and small things that they will need,” adding that plans were underway to ensure teachers were well-equipped for the new curriculum. He also spoke on the benefits of the curriculum, noting that it would rekindle the desire of parents and students to acquire formal education. Hear him, “Some parents do not want to send their children to school. Right now, part of the problem why schooling has become unattractive is because people finish and there’s no change in their lives. “They cannot be employed. They can’t do anything on their own. So, parents question the value of spending money to send their children to school. “Now it’s going to change that game altogether.
And we have seen how these things resonate with parents. When they are successfully implemented, you will see students will want to run to school every morning. Parents want to take their children to school because they are learning practical things while in school.”The Acting Executive Secretary of the Nigerian Educational Research and Development Council, Dr Margret Lawani, had also disclosed during the same event that the newly introduced subjects fell under the vocational and entrepreneurship studies framework, which has been designed to expose pupils to various trades across multiple sectors. In the views of some vocational training experts, the decision to include vocational education into the basic school curriculum is plausible as it comes at a time when the nation’s education system is facing mounting criticism for its inability to adequately prepare students for real-world challenges.
They opined that by introducing vocational training at an early age, Nigeria has an opportunity to bridge the gap between formal education and practical skill acquisition. They however noted that the success of this initiative hinges on thoughtful implementation and sustained support. “The problem of Nigeria has never been a dearth of ideas or policies on how to move the country forward. In the past some educationists came up with the idea of 6-3-3-4 system of education whereby Students would be taught introductory technology and other forms of vocational skills at the junior secondary school level to better equip them for the real world in future. What happened to that brilliant idea? How many schools have well-equipped laboratories and well-trained teachers to handle these technical and vocational subjects? “The idea of setting up technical schools and polytechnics across the country is for them to serve as a grooming ground for young Nigerians in the area of technology.
How has the government, both federal and states, supported these schools to succeed? So, our problem is lack of implementation, fragmented policies and lack of sustenance not lack of ideas”, posited one expert. He advised that for the new curriculum to bear positive fruits, the government must take time to sensitize heads and owners of schools, teachers, parents and pupils of both public and private schools on the importance of the subjects and assist the schools in acquiring the necessary equipment and tools for the smooth running of the curriculum. “These subjects being introduced cannot be taught only theoretically as we are used to in this country. They require regular practical classes which will cost some money. Government, via the ministries of education, must vote out money for these practical classes and be ready to supervise schools to ensure that they are doing the right thing,” he added
Noting the importance of vocational training in today’s Nigeria where the rate of unemployment is high, Mr. Abel Ikiriko, a basic technology teacher in a Private School at Trans Amadi, Port Harcourt, regretted that vocational training is often seen as a last resort for those who fail academically, leading to low enrolment. He said, “I say this because I am a teacher and I know what we see in school every day. When these vocational subjects are introduced, you will see parents who will go to their children’s schools to make trouble because the children are compelled to learn maybe Hairstyling or something like that. Every parent wants their children to be doctors, lawyers, engineers and other professions and never skilled persons because for our society, skilled jobs are for the dullards.” “One of the most pressing issues in our labor market is the skills gap. Employers often struggle to find workers with the right skills, despite high unemployment rates. Yet many youths are not willing to be trained in a vocation. They prefer to search for the unavailable white-collar jobs. So unfortunate,” he continued.
Ikiriko said that the inclusion of vocational training in primary schools has benefits that extend beyond future job prospects. “Hands-on activities help children develop critical thinking, problem-solving, and creativity—skills that are essential in any field. Vocational subjects can also provide an alternative pathway for students who may not excel in traditional academic subjects, ensuring that no child is left behind in the education system. Moreover, these subjects can instill a sense of dignity in manual labor and shift societal perceptions about the value of skilled trades.”He advocated for public awareness campaigns so as to change perceptions about vocational education, and showcase its potential to lead to successful careers. Mrs. Meg Amadi, a mother of three pupils is concerned about the curriculum of the primary schools being overloaded, stressing that that is a potential risk.
According to her, primary school students are at a formative stage of their development, and overloading them with too many subjects could lead to cognitive fatigue. She maintained that careful planning is required to ensure that the new vocational subjects complement rather than compete with core academic learning; that they are seamlessly integrated into the broader curriculum without overwhelming students. To maximize the impact of this initiative, she offered the following suggestions: the government must invest in training and retraining teachers to deliver vocational subjects effectively, collaborating with vocational training institutes and NGOs for better result; government should begin with pilot programs in select schools to identify best practices and address challenges before scaling up nationwide; the private sector should be engaged to provide funding, equipment, and expertise for vocational training in schools.
Nonetheless, some analysts are of the view that the addition of 15 vocational subjects to the basic school curriculum is a visionary step toward transforming the nation’s education system and improving the nation’s economy. they hold that if implemented effectively, the initiative will equip young Nigerians with the skills needed to thrive in a rapidly changing world while fostering a culture of innovation and self-reliance. They said that with collaborative effort, strategic planning, and unwavering commitment from all stakeholders and the right execution, this bold move could serve as a model for other nations seeking to align education with the demands of the 21st century.

Calista Ezeaku

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A Farewell To Arms In Ogoni

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For three decades or more, there has been a cessation of oil production activities in Ogoni land. But recent meeting of President Bola Tinubu with notable sons and groups may return Ogoni to renewed oil-production once again. Ogonis are weary of perennial neglect. Days after the meeting, President Tinubu gave a nod to the establishment of a  University of Environmental Technology in Tai in the Ogoni area. He had earlier-on approved appointments into some federal boards in which some notable Ogonis were among the beneficiaries. The President’s actions and speeches so far have indicated good faith and good intentions. This has urged hard-nosed and irrepressible resistant leaders like Attorney Ledum Mitee, one-time President of the Movement for the Survival of Ogoni People (MOSOP), to be in complete agreement with the return to oil production.
He was heard on the news calling on  all well- meaning sons and daughters of Ogoniland to accept the offers coming their way. Many Ogonis however,  are still doubtful about the President’s intentions. They have said it is all geared towards the Federal Government having access to the rich oil and gas deposits in Ogoni soil. There is also distrust by some who have yet to heal from past injustices inflicted on the land by previous governments in cahoots with the oil majors. Since 1993 when oil production stopped in Ogoni land following intensive protests from the Ogoni people, the Nigerian government and the oil majors stopped reaping from millions of dollars in proceeds from the oil and gas. Lawson Hayford, a veteran journalist, who has reported the Niger Delta for over four decades, particularly the Niger Delta and the Ogoni crisis, said Nigeria has lost revenue amounting to over N30 trillion for the 32 years that oil has not been mined in Ogoni land.
Writing in the Southern Examiner, Hayford said, “While oil exploration and production in the Niger Delta region began in the late 1950s, operations were suspended in Ogoniland in the early 1990s due to disruptions from local public unrests with oil fields and installations remaining largely dormant for about 34 years, leading to a loss of revenue of over N30 trillion. “There are a total of 96 oil wells connected to five flow stations across the four local government areas of Khana, Gokana, Tai, and Eleme in Ogoniland. They were being operated by the Shell Petroleum Development Company, SPDC of Nigeria, a subsidiary of the Royal Dutch Shell.” That story is presently being rewritten by the remediation efforts of the Hydrocarbon Pollution Remediation Project (HYPREP) and the work of Prof Nenibarini Zabbey, its Project Coordinator.
“Over 50 communities are now enjoying potable water.” As though this was not magic enough, contractors are working hard toward mangrove regeneration not to leave out empowerment programmes for women and people with disabilities. These are stories too good to be true. In addition, the Petroleum Industry Act has also been introduced to take care of some basic needs of the oil communities, especially by tying development of the communities to the operational budgets of the oil companies. The establishment of a host community development trust as a condition for oil mining license holders regarding community development, may well be the magic wand required to turn things around for the Ogonis. A trying present is most likely to give way to a prosperous future. The future of the land and peoples of oil-bearing communities appear brighter with possibilities within this framework.
Environmentalist and lawyer, Iniro Wills, however, strongly thinks that the community-friendly clause in the PIA is only a tiny drop that cannot quench the thirst of the people’s appetite. Only time will tell. A lot of work needs to be done to bring every party in the Ogoni scenario to the table. Some groups are yet to agree with the return of oil production in Ogoniland, while others do not quite agree with the modus operandi adopted to initiate the process. They would all need to be brought together to ventilate their positions so that everyone is taken along together. Last Saturday, the committee that emerged to kickstart a process of the consultations initiated by President Tinubu convened a meeting at Freed Centre, Bori in the heart of Ogoniland. Though it was well attended, proceedings had to be hurried as a group of protesters stormed the venue.
Blessing Wikina, a long time public communications expert from Ogoni however, noted that the Bori meeting was a good landing. He said he was there. He dismissed the slanted reports about the meeting which he said were done to create social media content. He said in his social media handle that the committee deliberately avoided founding the consultations along old ‘loyalty blocs’ and ‘groups of people with entitlement blood.’ “Every Ogoni was to attend as an individual, not as a member of a camp. This approach meant no one would claim success or failure.”
Several factions exist in Ogoniland, including the leading pressure group, MOSOP, and they all need to get involved in the consultations, including those sulking for not being invited to the Abuja parley with the President.
Factional MOSO President, Fegalo Nsuke, recalled how MOSOP championed the Ogoni struggle from the beginning and wondered why MOSOP was not invited to Abuja or the Bori meeting. Hayford said, “sidelining MOSOP in the move to re-enter Ogoniland for oil and gas production could create distrust in the hearts of the Ogoni people, cautioning against rushing the process in order not to generate tension, anxiety and crisis in the landscape of Ogoni area.” Certain that the current process led by President Tinubu would yield good fruit for the Ogoni, Wikina says, he silently prays that “this oil resumption comes sooner, so that our people will participate in productive ventures around our oil economy…..and get benefits like our brothers in Orashi area, Bonny axis, etc.”
He cast a glance at the Bodo-Bonny road that will link mainland Nigeria with the vital island port of Bonny that is passing through Ogoniland. “Shall we wait, watch, as vehicles drive through here, to where lucrative oil businesses are happening…without our involvement?  Every party will have to sheathe their sword and embrace the ongoing consultation process that will lead to a prosperous future for the land and the people.

Dagogo Josiah, Olayinka Coker and Emmanuel Obe
Josiah, Coker and Obe wrote in from Port Harcourt.

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Contributory Pension Scheme: Time For Review

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For decades, Nigeria grappled with a pension crisis that left countless retirees in financial insecurity and despair. The unfunded pension system led to delayed payments and inadequate retirement funds, especially for public sector employees. In response, the federal government, under the leadership of former President Olusegun Obasanjo, enacted the Pension Reform Act of 2004, introducing a contributory pension scheme (CPS) designed to overhaul the system and secure a dignified retirement for Nigerian workers.
According to the Pension Reform Act, 2004, Contributory Pension Scheme (CPS) is an arrangement where both the employer and the employee contribute portions of an employee’s monthly emolument towards the payment of the employee’s pension at retirement. The CPS covers employees in the public service of the Federation, Federal Capital Territory, States, Local Governments and private sector organisations with three or more employees.
Only Judicial Officers, members of the Armed Forces, the Intelligence and Secret Services of the Federation; retirees under any pension scheme existing before 30 June 2004; and employees who had three or less years to retire as at  June  30, 2004  were exempted from the scheme.
The objectives of the CPS according to Section 2 of the Pension Reform Act, 2004,  are to ensure that every retiree of the Nigerian Public Service receives his/her retirement entitlements as and when due; assist an improvident person to save against old age; and ensure a uniform set of rules and regulations on issues relating to the administration and payment of pension to retirees.
According to Section 85 of the Pension Reform Act, 2014, which effectively repealed the 2004 Act, “All contributions made under this Act shall be invested by the Pension Fund Administrators with objectives of safety and maintenance of fair returns on amount invested”.
Analysts and some retirees have questioned the usefulness of this section of the Act when the retirees are kept in the dark about the investments made with their contributions and hardly reap the dividend of the investment. A group of retirees known as Contributory Pensions Retirees Forum, recently described the CPS as a “modern day slavery; an instrument of economic annihilation of workers to death in abject poverty after retirement.”
According to them, the CPS denies retirees of a lump sum of their money after retirement and dispenses a paltry monthly pension to retirees across the board. They narrated the case of a retiree who served the Federal Government from July 15, 1981 and retired on July 15, 2016 on salary grade Level 14, having worked for a mandatory period of 35 years and attained the maximum age of 60 years.
For all the years he put in, the total balance standing to his credit was N6,745,823.34. Out of this, he was paid 25 per cent which amounted to N1,686,455.84 while the balance of 75 per cent was retained by Pension Fund Administrator (PFA) for investment in the capital market and other large institutions.  The retiree has been receiving a paltry sum of N26,703.15 monthly since 2016 till date despite the huge profits declared every year from the investment.
“Unfortunately, the sad part of this is that every day prices of goods and services are on the increase.  While workers and retirees under the old scheme – Defined Benefit Scheme had their salaries and pension increased across all levels, we in the CPS are abandoned to our fate. We do not get increase”, lamented a retiree.
A public affairs analyst, Bonny Harrison, described such treatment of the retirees, who spend their active years serving the country as unfair and inconsiderate, noting that such attitude will discourage the people still in service from putting in their best. “They may be lured into bribery and corruption, knowing that the country will not cater for them when they retire”, he opined.
Section 7, Sub Section 1, Paragraph (a) of the Pension Reform Act, 2014 provides that unlike the former Defined Benefit Scheme, the CPS is to be jointly funded by both the employer and the employee. Each worker has an individual Retirement Savings Account (RSA) with a Pension Fund Administrator (PFA).
It also made provision for state governments to migrate to the CPS and stipulates that employees contribute eight per cent of their monthly earnings, and employers add 10 per cent, totalling 18 per cent of the employee’s monthly income. The funds are managed under the oversight of the National Pension Commission (PenCom), with the aim of ensuring transparency and accountability.
Two decades down the road, getting the state governments to key into the scheme has been a Herculean task. Reports show that only about five out of the 36 states in the country have fully complied with the CPS Act. Some have not even enacted their CPS laws while some enacted the law without contributing anything to their workers’ RSA.   PenCom and Pension fund operators have reportedly made frantic efforts to have them key into the scheme since 2014 but that yielded little or no results.
A recently retired civil servant in Rivers State narrated that the past governments in the states did not key in fully into the scheme. While the eight per cent of the employees’ salary was deducted, the government failed to contribute its own 10 per cent, thereby making retirees from the state ineligible to benefit from the CPS scheme.
The retiree was however glad that the total amount he contributed over the years was paid to him without any deduction and that the State government has put keying into the CPS on hold. He advised that the state government should not be part of the CPS as it is confusing and not favourable to government workers. “Contributory Pensions Scheme cannot work in our states where the governors run the states like their personal businesses. A governor today may decide to contribute and another governor tomorrow may choose not to. What happens to the retirees in such a situation? He queried.
Low compliance in the informal sector has also been noted as one of the challenges of the scheme. The informal sector, which represents over 80 per cent of Nigeria’s workforce, often lacks the structure or financial stability to commit to monthly contributions. Many informal workers are unaware of the benefits of joining the scheme, highlighting a gap in outreach and education.
Analysts have also observed that fluctuations, especially inflation, often erode the value of retirement savings. Although PFAs invest in various assets, ensuring inflation-adjusted returns remains challenging, impacting retirees’ purchasing power, they said.
They therefore, canvassed  for a halt of the CPS  or reforms and initiatives to make it effective and worth the while. These include:
Expansion of CPS outreach programmes and incentives, such as flexible contribution options to increase informal sector enrollment; improved awareness and education which will drive greater participation among self-employed and informal workers; increasing transparency in fund management and imposing stricter penalties for misconduct so as to improve public confidence; introducing innovative investment options like green bonds and infrastructure development projects to help pension funds achieve better returns.
Others are:  a more aggressive investment strategy that offers inflation-protected returns, benefiting retirees in the long term by PenCom in order to mitigate inflation’s effects, and PenCom offering financial education to pensioners so as to help them manage their funds effectively.  PenCom should offer financial planning resources, ensuring that retirees fully understand the structure and benefits of the CPS.
Analysts have also argued that for CPS to succeed and live up to its objective of being a cornerstone of economic stability and prosperity, embodying the hope of dignified and secured retirement for all, PenCom must wake up to her duty of ensuring that the retirees are not short-changed by the pension administrators and that non-complaint employers (that fail to make deductions) as stipulated in PRA 2014 are duly punished.

Calista Ezeaku

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