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PFAs boost investment in infrastructure to N40.52 billion   

The Pension Fund Administrators have increased investments in infrastructure to N40.52 billion, according to the latest PenCom’s monthly report. 

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Nigeria’s Pension Asset increased by N228 billion in October, PFAs increase investment in infrastructure to N40.52 billion   

Pension Fund Administrators (PFAs) have increased their investments in infrastructure from N37.5 billion in October 2019 to N40.52 billion by November 2019. This was disclosed in the National Pension Commission’s (PenCom) latest monthly report.

The report stated that out of the N9.9 trillion pension fund assets, about N7 trillion had been invested in the Federal Government securities by the PFAs, which represents 70.88% of the total fund size.

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According to the commission, as at May 2015, the operators had invested N568 million in infrastructure and increased investments to N1.35 billion in December 2015, adding N2.06 billion in infrastructure bond in December 2016. The investment rose to N6.86 billion in December 2017 and as of the end of September 2018, N17.12 billion had been invested in infrastructure.

The breakdown: Pension fund assets were worth N9.9 trillion as at November 2019, according to the monthly report. Here are some of the assets invested in by the PFAs.

  • Federal Government’s securities took a chunk of the pension assets, with the report showing that N4.86 trillion as an investment in Federal government bonds alone.
  • This was followed by N2.1 trillion investment in Treasury Bills while investment in Sukuk bond, agency bond, and green bonds, with N78.1 billion, N10.82 billion and N15.64 billion respectively.
  • There was a significant drop in cash and other related cash assets when the N45.14 billion recorded in November is compared to the N95.30 billion recorded in October.
  • The commission invested a sum of N117.79 billion in state governments’ securities, with state government bonds and corporate bonds taking the balance of 29.12%.
  • The N10.82 billion agency bond, according to the commission, was invested in two government agencies, the Nigeria Mortgage Refinancing Company and the Federal Mortgage Bank of Nigeria.

However, a sum of N535.93 billion, representing about 5.36% of the fund, was invested in domestic ordinary shares, while foreign ordinary shares had a total investment of N62.6 billion, amounting to 0.69%.

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[READ MORE: PFAs invest 71.4% total assets in FG securities)

Similarly, the sum of N5.03 billion was invested by the PFAs in foreign money market securities; N23.62 billion in mutual funds; N224.63 billion in real estate; N32.31 billion in private equity fund.

However, investments in Federal Government securities by PFAs are expected to adopt a downward trend due to various monetary policies adopted by the Central Bank.

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Hospitality & Travel

Passengers can now arrive 90 minutes before departure for domestic flights – FG

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international passengers, Coronavirus: FG enforces immediate screening of travellers at airports with new directive

The Federal Government has announced the reduction of arrival time for passengers from three hours to one hour and a half before departure for domestic flights.

This was disclosed in a tweet post by the Minister for Aviation, Hadi Sirika, through his Twitter handle on Monday, July 13, 2020.

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The minister said that the decision was arrived at after they have reviewed passenger facilitation at the airport while noting that passengers should check-in online.

In the tweet post, Sirika said, ‘’My colleagues and I have reviewed passenger facilitation at our airports, consequently I am happy to announce that, henceforth travellers are to arrive one hour and half before their departure time for domestic flights. Travellers are advised to check-in online, please.’’

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It can be recalled that the Federal Airports Authority of Nigeria (FAAN) had earlier in June issued flight resumption protocol for both international and local passengers across the country, advising passengers to arrive at the airport three hours before their time due to the new COVID-19 safety checks for domestic flight operations and five hours for international flight operations.

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Economy & Politics

Seyi Makinde Proposes N3 billion investment plan for water supply

The local governments in Oyo are advised to submit a list of 10 faulty boreholes in the LG. 

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Seyi Makinde Proposes N3 Billion plan for water supply

The Governor of Oyo State, Seyi Makinde announced the proposal of a N3 billion investment plan dedicated to water supply in rural and urban areas of the state.

Speaking through the Chairman of Rural Water Supply and Sanitation Agency (RUWASSA), Mr. Najeem Omirinde in Ibadan on Monday, he added that N500 million of the N3 billion would be used for repairing broken and faulty state-owned boreholes.

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All Chairmen of each of the Local Governments in Oyo are advised to submit a list of 10 faulty boreholes in the Local governments.

The Oyo State governor also ordered that all new boreholes must be compliant with solar-powered pumps, to enable their longevity and save costs.

Urging residents to patronize the agency if they need to dig up boreholes for water, citing that it would be cheaper if done through the state agency than with private drilling companies.

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Minister of Finance, Zainab Ahmed stated last year that Nigeria needs an estimated N36 trillion annually for the next 30 years to solve Nigeria’s infrastructure problem. The investment, although a tiny fraction of what Nigeria needs is a bold step by the Oyo State government.

 

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Economy & Politics

FG asks UK court for more time to appeal $9.6 billion arbitration judgement

Malami stated that the Evidence of P&ID’s highly orchestrated scam had only recently come to light. 

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FG asks UK court for more time to appeal $9.6 billion arbitration judgement

The Federal Government has approached a UK court to appeal for more time to appeal the $9.6 billion arbitration award against it over the breach of contract with Process & Industrial Development (P&ID) Ltd.

Nigeria has said that it needs more time to pursue its argument that the 2010 gas supply contract with Process & Industrial Development Ltd was a sham.

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The legal dispute with P&ID is coming against the backdrop of the huge drop in the country’s revenue due to the collapse in oil prices globally. Nigeria had applied to US courts in March seeking for documents from 10 banks which includes Citigroup Inc. and JPMorgan Chase & Co, in a bid to prove its corruption allegations.

P&ID, however, has denied any wrongdoing in the whole transaction, arguing that Nigeria missed its opportunity to appeal.

The Nigerian Lawyer, Mark Howard, on Monday, the first morning of a 2-day hearing, said ‘’It is very unusual in a fraud case to discover a single smoking gun. By its very nature, fraud is conducted in secret, which makes it hard to detect and justifies an extension.’

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READ MORE: The effect of the United States’ Shale Oil on Nigeria?

The legal representatives for Nigeria are seeking another hearing for the judge to decide whether any misconduct has taken place and whether it justifies overturning the contract

The Attorney General and Minister for Justice, Abubakar Malami in a statement said, ‘’Evidence of P&ID’s highly orchestrated scam had only recently come to light.’’

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It can be recalled that last year, a UK judge upheld an earlier arbitration award to P&ID, which had accumulated to about $9.6 billion. The arbitration decision was over a failed contract to build a gas processing plant in the Southern city of Calabar.

The Nigerian lawyers disclosed that they have uncovered alleged bribes to government officials and their family members dating back to 2009.

Malami in his court filing on March 24, submitted that ‘’There is good reason to believe that ministers at the highest level were involved in a corrupt scheme to steal money from Nigeria.’’

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