The National Pension Commission (PenCom) remitted the sum of N7.42 billion into the Retirement Savings Accounts (RSA) in the fourth quarter of 2018.
The latest PenCOm report shows that RSA funds were remitted into 966,155 employees’ accounts, out of 2,044 organisations. The private sector controls the larger proportion of RSA.
According to the report, PenCom received a total of 3,046 applications for the issuance of Pension Compliance Certificates, out of which 2,044 were approved and issued. 1,002 applications were rejected for failing to meet appropriate requirements.
Meanwhile, the report shows that the cumulative number of applications received during the year was 16,536 out, of which 16,100 were approved and issued certificates while 436 were rejected. PenCom reiterated that it continued to apply various strategies to ensure compliance with the provisions of the Pension Reform Act of 2014.
Transfer of NSITF Contributions to RSA – During the quarter under review, the commission received 1,282 applications for transfer of Nigeria Social Insurance Trust Fund (NSITF) applications totalling N56.78m.
NSITF is one of the foremost social insurance organisations in Africa, founded in 1961 as the National Provident Fund with the mandate to protect employees in the Nigerian private sector who were mostly in non-pensionable employment.
PenCom stated that stated that all applications received were processed and transferred to the RSAs of the NSITF members. From inception to December 2018, N19.64 billion had been transferred to the RSAs of 272,463 NSITF contributors.
Payment of Lump sum benefits to NSITF Members – Similarly, the Commission granted approval to Trustfund for the payment of ₦14.34 million to 377 NSITF members. Thus, from November 2006 to 31 December 2018, ₦2.90 billion had been paid as Lump Sum to 35,562 NSITF Members.
Meanwhile, PenCom further reported that during the period under review, 65 batches of applications were received from Trustfund Pensions on behalf of 378 NSITF members for payment of Lump-Sum Grants.
Significant outstanding pension contributions recovered – In the last quarter of 2018, PenCom maintained that the services of Recovery Agents (RAs) for the recovery of outstanding pension contributions and penalty from defaulting employers.
Specifically, the RAs were mandated to review the pension records of the employers assigned by the Commission with a view to recovering outstanding pension contributions with the penalty.
Therefore, for the period under review, the sum of N365.56 million was recovered by the RAs. This brings the total recoveries made by the Agents from the inception of the exercise in 2012 to date to N15.36 billion, representing the principal contribution of N7.87 billion and penalty of N7.49 billion.
“These amounts have since been credited to the respective RSAs of the employee.”
Pension Contribution Refund to Agencies – According to the report, PenCom processed 240 applications for the refund of pension contributions of Military personnel and Other Security Agencies during the year. Hence, the sum of N157.86 million was refunded to the contributors.
Note that a Tripartite Committee for the Winding Down of the Military Refund was set up in October 2018 to review the entire refund process with a view to ensuring the immediate payment of all outstanding requests.
State Governments continue to make progress in Pension Scheme – The commission indicated that State Governments continued to make progress in the level of implementation of the Contributory Pension Scheme (CPS). As at the fourth quarter of 2018, the number of States that have enacted laws on the CPS stood at 27, while eight (8) States were at the bill stage of implementation.
Private Sector is driving growth in Pension industry – Basically, the pension industry recorded a 1.63 percent growth in the scheme membership during the fourth quarter of 2018, moving from 8.34 million contributors at the end of the preceding quarter to 8.47 million.
According to the PenCom report, the growth recorded in the industry membership was driven by the RSA Scheme, which had an increase of 138,236 contributors representing 1.64 percent.
Further breakdown of the RSA registrations indicated a 0.82 percent (29,455) increase in RSA membership from the public sector during the Q4 of 2018 to stand at 3.6m which represented 42.92 percent of the total RSA registrations.
However, the private sector membership increased by 2.32 percent (108,781) in the quarter under review, which brought total registrations from this sector to 4.8 representing 57.08 percent of total RSA membership. This growth can be attributed to the increased level of compliance by the private sector.
Worrying trends – Nairametrics had earlier reported that one of the reasons for the nearly 326 fold increase in contributions is due to the increase in employees who now contribute to the scheme. Despite the rise, trends in younger contributors are on the decline.
Basically, the way pensions are designed, the younger your contributors the better the pension funds. In the meantime, with the pressure now on those aged 40 years and above to sustain Nigeria’s pension fund industry, the growth in the pension industry remains lopsided.
Twitter to establish its first African presence in Ghana
Twitter has announced Ghana as headquarter of its operations in Africa.
Jack Dorsey, CEO of Twitter Inc has announced today in a tweet that the company is establishing a presence in Africa.
“Twitter is now present on the continent. Thank you, Ghana and Nana Akufo-Addo,” Dorsey tweeted.
As part of its mission to serve the public conversation, Twitter is making it easier for everyone to join in and provide more relevant experiences for people across the world.
Why Ghana as a choice…
Twitter stated that it chose to expand to Ghana first because the country is an advocate of free speech, online freedom, and the Open Internet.
In a blog post the company said, “In line with our growth strategy, we’re excited to announce that we are now actively building a team in Ghana. To truly serve the public conversation, we must be more immersed in the rich and vibrant communities that drive the conversations taking place every day across the African continent.”
“Furthermore, Ghana’s recent appointment to host The Secretariat of the African Continental Free Trade Area aligns with our overarching goal to establish a presence in the region that will support our efforts to improve and tailor our service across Africa.
“Whenever we enter new markets, we work hard to ensure that we are not just investing in the talent that we hire, but also investing in local communities and the social fabric that supports them. We have already laid foundations through partnerships with Amref Health Africa in Kenya, Afrochella in Ghana, Mentally Aware Nigeria Initiative (MANI) in Nigeria, and The HackLab Foundation in Ghana. As part of our long-term commitment to the region, we’ll continue to explore compelling ways we can use the positive power of Twitter to strengthen our communities through employee engagement, platform activation, and corporate giving,” Twitter stated.
The company is also looking to hire specialists to join several teams to operate in product, design, engineering, marketing and communications.
The choice of Ghana as HQ for Twitter’s Africa operations is EXCELLENT news. Gov’t and Ghanaians welcome very much this announcement and the confidence reposed in our country. 1/3 #TwitterInGhana #TwitterGhana https://t.co/HdCqFgXK0x
— Nana Akufo-Addo (@NAkufoAddo) April 12, 2021
Reacting to Dorsey’s announcement, Ghanaian President, Nana Akufo-Addo, in a tweet said that the government and people of Ghana welcome welcomed the micro-blogging site.
“The choice of Ghana as HQ for Twitter’s Africa operations is excellent news. Government and Ghanaians welcome very much this announcement and the confidence reposed in our country,” President Akufo-Addo tweeted.
Youths need critical skills to strengthen Nigerian economy – Bankers Committee’s FITC
Nigerian youths need to embrace adequate skills and create a pool of well-engaged workforce to directly strengthen the nation’s economy.
Bankers Committee’s FITC has called on Nigerian youths to embrace adequate skills and create a pool of well-engaged workforce to directly strengthen the nation’s economy.
This was disclosed by the Managing Director, FITC, Chizor Malize, during the launch of its Future of Work Academy for Youths on Monday.
According to her, the initiative is to continuously bridge the knowledge gap in the country and Africa at large, as it is expected to equip the youths for the peculiar needs of the Future of Work.
It also seeks to solve the prevalent issue of producing university graduates with degrees and skills that have limited practical use in the current global job market, as well as the requirements for the Future of Work.
She said, “The world of work is changing rapidly, and competition for the right talent is fierce. Graduate talents have for decades been primarily identified and employed based on academic excellence, however, in the emerging world of work, creativity, innovation, and work-ready skills have become the non-negotiable indicators for competitive advantage, and to evaluate capabilities.
“It is therefore important for youths to build critical skills, that will equip them for the requirements of the Future of Work in the ever-evolving business landscape. The value FITC FOWA is bringing to corporations at this time cannot be overemphasized. By equipping youths and creating a pool of well-engaged workforce for organizations, FITC FOWA will be directly strengthening the economy and the society in general.”
Malize added that the initiative offers essential courses in Data Science, Data Analytics, Coding, Digital Marketing, Graphics Designs, MS Excel & Analytics, Digital Marketing, Use of PowerPoint, and other key areas that have been strategically packaged to educate, enlighten, and upskill undergraduates and graduates with the vital skills for the Future of Work.
What you should know
Owned by the Bankers Committee (CBN, NDIC and all Nigerian deposit money banks), FITC was established in 1981 as a non-profit organisation limited by guarantee to provide capacity building and serve as a knowledge hub for the Nigerian Financial Services Sector.
Nairametrics | Company Earnings
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