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Contributory Pension Scheme: What Stake For Rivers Workers?

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The Pension Reform Bill which President Olusegun Obasanjo signed into law on June 25, 2004 did not provide coverage for state and local government employees.

Unlike the 1990 Pension Act which it replaced, and which gave coverage to all retiring workers in the state service based on counterpart financial payments by the federal and state governments, the new Act is clearly restricted to federal and private-sector employees.

This is clearly expressed in Section 2 of the Pension Act which states as follows: “The scheme shall apply to all employees in the public service of the federation, federal capital territory and the private sector.”

It is also instructive to point out that even as the law makes contribution to the scheme mandatory for all federal civil servants and FCT workers, its application to the private sector is only limited to firms with five or more employees.

As for workers at the lower tiers of government, the Pension Act leaves the decision to the discretion of their respective employers. This simply means that states and local councils are at liberty to decide on whether or not to enact laws that will enable their workers participate in the contributory pension scheme (CPS).

The National Pensions Commission (PenCom), which is the apex regulatory body for pension matters in the country, said it has, however, continued to engage states and local governments in discussions aimed at persuading them to key into the new pension system.

The Commission’s efforts appear to have been yielding results, after all. This is because available statistics indicate that as at December 2011, six states had commenced full implementation of the scheme; 11 were already working out structures for its take-off; 17 still had theirs pending at their state legislatures; while two states were yet to initiate any visible action on the matter.

In enacting the new Pension Act, its proponents may have wished for a system which would ensure that workers save toward their retirement and that receipt of retirement benefits is made regular and much easier.

This is surely designed to significantly reduce (if not completely eliminate) the sufferings of pensioners. These sufferings include but are not limited to: dying without receiving a dime of their benefits even after some years into retirement; collapsing from hunger and exhaustion while on queue for the many identification exercises that precede each payment; giving up a large chunk of their benefits to fraudulent pension officials in order to avoid the unnecessary delays associated with the processing of pension documents.

In general terms, the CPS requires that each participating worker opens a Retirement Savings Account (RSA) with any Pension Fund Administrator (PFA) of his choice. This account is to be operated with a Personal Identification Number (PIN).

The initial rate of monthly contributions by the worker and his employer is a minimum of seven and half per cent each. This means that every worker will have at least seven and half per cent of his emolument (annual basic salary, transport and housing allowance) deducted from his monthly salary. In the same vein, his employer will also make a contribution of, at least, the same amount on behalf of the worker. Their combined minimum of 15 per cent contribution is then paid into the account of the worker’s chosen PFA with a Pension Fund Custodian (PFC) which, in turn, advises the PFA to credit the worker’s RSA.

Again, whatever may be a worker’s monthly cash contribution, such social insurance expense is regarded under the Pension Act as a tax-deductible expenditure. This means that the money is tax-free and should be deducted from the worker’s salary before his personal income tax is computed. The same goes for his employer with regard to any company income tax assessment.

But even with all the strict measures outlined in the Pension Act to effectively regulate the administration of pension funds in Nigeria, sad tales have continued to trail the CPS.

The recent revelations concerning the alleged misappropriation of N88 billion police pension money by Mr. Abdulrashid Maina, chairman of the Presidential Pension Recovery Task Team (PPRTT) has become a cause of serious concern to existing and potential contributors. Even the ongoing probe of the pensions sub-sector by the National Assembly has done little to douse such apprehension.

PenCom helmsman, Mr. Muhammad Ahmad, has, however, continued to assure the nation that the CPS is very much on course. According to him, about 5.01 million workers are already registered under the scheme in both the public and private sectors. Of this number, 31 per cent are federal employees while 23 percent and 46 percent are state and private-sector workers, respectively.

He said that the value of pension assets under the scheme stood at N2.45 trillion in December 2011 with a monthly contribution of N20 billion and 30 per cent annual growth rate.

Ahmad also disclosed that the Federal Government had, as at the same period, remitted N604 billion into a Contributory Pension Account with the Central Bank of Nigeria (CBN) out of which N449.35 billion was paid into the various RSAs.

Here in Rivers State, it’s only a matter of time before public servants join their counterparts from the few states that have started to implement the new pension scheme. This follows Governor Chibuike Amaechi’s recent assent to a Contributory Pension Bill by the Rivers State House of Assembly and the earlier assurance by the Chairman of the State Pensions Board, Mrs. Edna Alikor, to the effect that modalities are being worked out for an effective commencement of the scheme in the state.

Alikor was said to have given this assurance after a maiden meeting of her board with relevant stakeholders in the state, including the Head of Service, Mrs. Esther Anucha, and the Finance Commissioner, Dr. Chamberlain Peterside.

She also disclosed that workers who have less than seven years to retire would not be eligible to participate in the scheme as stated in the pension bill.

While noting that workers retiring from the state’s public service currently receive their pensions and gratuities within two months of retirement, the board chairman also described as pitiable a situation where long-retired persons still receive a monthly pension of less than N500, coupled with the existence of names of dead retirees in the government’s payroll.

Unlike some states which rushed into the new pension scheme in order to satisfy a Debt Management Office (DMO) condition for bond issuance, and are now many months in default of their pension contributions, Rivers State cannot be said to be in any such haste even as it strives to work for the overall interest of its indigenes, workers inclusive.

The establishment of a dependable pension scheme for a state’s workforce certainly requires the exercise of due diligence on the part of the pensions board, especially in a system that allows the option of selecting PFAs and allocating ministries, departments and agencies (MDAs) to such pension managers.

Even as the rule requires that PFAs invest pension funds strictly within the objectives of safety and fair returns on the amounts or assets invested, it goes without saying that Rivers workers and, indeed, the entire state stand to benefit more if contributions from civil servants are saved with those PFAs that have always identified with the state and are most likely to channel such investible funds into safe and viable projects located within the state.

But while workers patiently await the commencement of this laudable scheme, let it be said that the reintroduction of pay advice into the salary payment system is long overdue. It beats most minds to realise that Rivers workers received pay slips along with their salaries some years ago when the civil service system knew next to nothing about computers and information technology whereas such rights are lacking now that the entire system is computerised.

As of right, a worker deserves to know how much increments and or deductions that apply to his income even before such is paid.

 

Ibelema Jumbo

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Fish Production Deficit, A Major Investment Opportunity – Minister

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The Minister of Marine and Blue Economy, Dr Adegboyega Oyetola, has called on investors and financial institutions to tap into Nigeria’s vast catfish industry, describing the country’s fish production deficit as a major investment opportunity capable of driving economic growth, food security and job creation.
Oyetola made the remark during a high-level roundtable on scaling sustainable catfish value chain transformation, organised under the Fisheries and Aquaculture for Africa, the Caribbean and the Pacific programme, in Abuja, Wednesday.
In a statement, Oyetola said Nigeria’s annual fish requirement stood at approximately 3.6 million metric tonnes, while domestic production from all sources is about 1.4 million metric tonnes, leaving a significant supply gap that local aquaculture operators and prospective investors could exploit.
He said “Expanding domestic fish production is an economic and food security imperative. It offers an opportunity to strengthen domestic food supply, reduce dependence on fish imports, stimulate enterprise development and create sustainable livelihoods across the country.
He noted that Nigeria is Africa’s second-largest aquaculture producer and a leading producer of farmed African catfish, stressing that the sector’s potential extends beyond fish farming to hatcheries, feed mills, equipment manufacturing, transportation, processing, cold-chain services and trading.
“Investment in aquaculture has a multiplier effect, creating opportunities and value across several interconnected sectors of the economy. Closing the production gap would require more than establishing additional fish farms”, Oyetola stated, insisting on coordinated investments across the entire value chain.
He identified access to quality fingerlings, affordable feed, appropriate financing, effective fish health management, reliable markets and modern infrastructure as essential to sustainable industry expansion.
Highlighting the contributions of FISH4ACP, the minister commended the Food and Agriculture Organisation, the European Union and the German Government for supporting Nigeria’s catfish value chain.
He said the programme had identified critical industry constraints and demonstrated practical interventions in alternative feed ingredients, including black soldier fly larvae, hatchery management, broodstock improvement, business development and digital farm management.
On access to finance, Oyetola urged lenders to develop credit arrangements that reflect the realities of fish farming.
While stating that “the timing of disbursement, repayment schedules and cost of credit must reflect the production cycle and cash-flow patterns of fish farming enterprises,”the minister added that viable businesses should not be constrained by unsuitable financing arrangements.
He identified high feed and energy costs, inconsistent supplies of quality fingerlings, inadequate fish health management, weak biosecurity and insufficient processing and cold-storage facilities as major challenges confronting the industry, describing these constraints as investment opportunities, particularly in feed manufacturing, modern hatcheries, processing facilities and cold-chain infrastructure.

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NCDMB, NLNG Unveil $9m For Professorial Endowment Research Chairs In Six Varsities

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The Nigerian Content Development and Monitoring Board (NCDMB), and the Nigeria Liquified Natural Gas Limited (NLNG) have launched a US$9 million professorial chair endowment programme across six Nigerian universities to develop commercially viable solutions to industry challenges, strengthen local research capacity and advance technological innovation.
To this end, the Board in a statement said under the Nigerian Content Research and Development (NC-R&D) Professorial Chair Endowment Programme, each university is to receive US$1.5 million to establish a specialised professorial chair focused on agreed industry research priorities.
The Tide gathered that the initiative was being implemented in partnership with the NCDMB, under the supervision of its Planning, Research and Statistics Directorate.
The beneficiary institutions include the University of Ibadan, Oyo State, Rivers State University, Port Harcourt, Modibbo Adama University, Yola, Adamawa State, Aliko Dangote University of Science and Technology, Kano State, University of Nigeria, Nsukka, Enugu State, and Yakubu Gowon University(formerly University of Abuja).
Speaking at the kick-off ceremony, NLNG’s Managing Director and Chief Executive Officer, Adeleye Falade, described the programme as an investment in Nigeria’s capacity to translate academic knowledge into practical solutions.
In his keynote address, titled ‘Reshaping Nigeria’s Future Through Innovation, Research and Capacity Development,’ Falade emphasised the importance of sustained collaboration between government, industry and academia.
“In the energy industry, we understand that technology and energy systems are evolving and the requirement for sustained research cannot be overemphasised,” he said.
The NLNG’S boss noted that the programme would support research into challenges central to the energy industry’s future, including improving operational efficiency, managing emissions, strengthening safety, maintaining critical infrastructure and making industrial processes more sustainable.
Beyond the research endowments, he outlined opportunities for a “triple helix” approach that brings government, industry and academia together through specialised programmes, sabbaticals, exchange opportunities, practical testing of research assumptions and the joint development of postgraduate curricula.
A Statement from the Corporate Communications Division of the NCDMB further stated that the six beneficiary universities will undertake research in distinct areas while the NLNG Research and Innovation Centre for Computer and Electrical Engineering (RICCEE) at the Rivers State University was envisaged as the coordinating point for these collaborations among the universities.
Falade added that discussions were already under way with the Rivers State University on implementation arrangements and commended its Vice-Chancellor, Professor Isaac Zeb-Obipi, for his role in advancing the proposed collaboration.
“We’ve already gotten indications of other partners like Google, Cisco and MTN who are showing interest to support this initiative, he noted.
He also highlighted the opportunities for younger researchers to deepen their expertise, investigate industry problems and learn from experienced academics and practitioners, urging the beneficiary institutions to build on the endowments by strengthening research partnerships and attract additional funding and pursue the commercialisation of intellectual property.
“Expand the scope, reach for more grants and funding which can push the frontiers of knowledge and commercialisation of intellectual property,” he added.
Acknowledging NCDMB’s role in bringing the initiative to fruition, the LNG helmsman called for sustained commitment to technology transfer and the development of home-grown solutions without compromising quality assurance or safety.
He averred that the programme’s lasting value would lie on stronger institutions, research outcomes deployed in the field and the development of the next generation of Nigerian researchers and industry professionals.
In his remarks, the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe said the US$9 million for the endowment programme represents a strategic investment in the future of Nigeria’s research and innovation ecosystem.
The initiative, he said, complements the Board’s ongoing investments in research infrastructure, including the establishment of specialized Research and Development (R&D) Centres of Excellence across six universities in the country.
He added that when taken together, these interventions demonstrate the Nigerian oil and gas industry’s commitment to creating an integrated research ecosystem that connects academic expertise, modern research infrastructure, industry requirements, and commercialisation opportunities.
Represented by his Senior Technical Adviser, Engr. Austin Uzoka, the Executive Secretary said by supporting specialised professorial chairs in critical areas of the industry operations, NLNG and NCDMB were creating opportunities to bridge the longstanding gap between academic research and industrial application.
He further charged the universities to deliberately transition from research for publication to research for application, and from innovation as an academic pursuit to innovation as a driver of industrial transformation.
“The beneficiary universities must see this endowment as both an opportunity and a responsibility and they would be expected to deliver clearly defined research objectives, measurable outcomes, prudent resource utilisation, effective stakeholder engagement, and sustained collaboration with industry partners.
“These Professorial chairs will generate commercially viable solutions, strengthen local technological capabilities, support industrial competitiveness, and contribute meaningfully to the long-term sustainability of Nigeria’s oil and gas industry”, he said.
The Tide reports that further details contained in the NCDMB’S Corporate Communications Division States that the University of Ibadan will focus on natural gas processing, pollution control and environmental management, while Rivers State University will concentrate on digital engineering, intelligent energy systems, automation and asset integrity.
Modibbo Adama University will undertake research in energy transition and the environment, while Aliko Dangote University of Science and Technology will focus on sustainable energy innovation and climate-resilient food systems.
In the same vein, the University of Nigeria, Nsukka, will specialise in green energy production and geoenvironmental engineering, while Yakubu Gowon University(formerly the University of Abuja) will focus on geoscience and satellite intelligence for resilient gas infrastructure.
Other terms contained in the endorsement document indicates that each of the beneficiary universities will work towards agreed research targets and commercialisation pathways, providing a framework for measuring progress and translating findings into practical applications.
The institutions, according to the Board will also jointly host an information management hub to support knowledge sharing and exchange programmes.

Ariwera Ibibo-Howells, Bayelsa

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‘NUJ, NPA’s Partnership Would Boost Port Producrivity, Economic Growth’

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The Chairman of Rivers State Council of the Nigeria Union of Journalists (NUJ), Comrade Paul Bazia, has said the proposed partnership between the union and the Nigerian Ports Authority (NPA), Rivers Port, would promote effective information dissemination, boost productivity and enhance economic growth.
Bazia gave the assurance during a courtesy visit by the leadership of the NUJ Rivers State Council to the management of NPA, Rivers Port, in Port Harcourt, within the week.
Comrade Bazia said the proposed collaboration was informed by the strategic importance of port operations to national economic development, particularly Rivers Port, which he described as the cradle of maritime operations in the Eastern Maritime Corridor.
He explained that current leadership of the union had, upon assumption of office, resolved to promote constructive and development-oriented journalism capable of improving the public perception of Rivers State and attracting investors.
Bazia said the visit was also intended to familiarise the union with the achievements and operational challenges of the port management, while identifying areas of collaboration that would enhance its efficiency and contribute to national economic growth.
According to him, Rivers Port occupies a significant position in the maritime industry and deserves adequate media attention to showcase its contributions to commerce, trade and the nation’s economy.
The NUJ chairman said the union was committed to changing the narrative through positive and balanced reportage, noting that effective media engagement would help project the activities of the port and attract the needed investment.
He further disclosed that the NUJ had correspondents covering different sectors of the economy, including the maritime industry, and was prepared to deploy specialised maritime reporters to the authority whenever the need arose.
Bazia urged the port management to sustain its relationship with the union by informing it of important developments, activities and programmes requiring media coverage, assuring that the NUJ would provide the necessary publicity.
In her response , the Port Manager of NPA, Rivers Port, Mrs Edith Okezie, described the NUJ as a critical partner in information dissemination and the promotion of national economic development.
Okezie highlighted some of the achievements recorded under her administration in the last three years, including the rehabilitation of internal roads within the port complex and measures taken to strengthen security around the facility.
She also disclosed that port’s water channels had been dredged to facilitate the smooth movement of vessels, while rehabilitation work was ongoing on some of the berths to improve operational efficiency and service delivery.
The port manager further noted that the Federal Government was currently undertaking rehabilitation of ports in the Western region, expressing optimism that the exercise would be extended to ports in the Eastern region. She thanked the NUJ delegation for the visit and welcomed the union’s readiness to collaborate with the authority.

King Onunwor

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