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Economic hardship: Massive contingency withdrawals hit micro pension funds
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At the backdrop of heightened economic hardship subscribers to the micro-pension scheme have began to draw down on their contributions through contingency withdrawals.
The micro-pension plan, MPP, was created by the National Pension Commission to encourage low income group, mainly self employed and informal sector workers, to have a pension savings for their old age.
Financial Vanguard findings from pension data show that the contingent withdrawals by micro pension contributors in 2023 skyrocketed by 245.2 per cent to N21.4 million from N6.2 million recorded in 2022.
Also, the number of contributors that made contingent withdrawals increased by 68.4 per cent to 64 in 2023 from 38 recorded in 2022.
Contingent withdrawals is that portion of the Retirement Savings Account, RSA, balance made available for withdrawal to ease financial pressures or needs of the micro pension contributor before his/her retirement.
The sharp rise in contingency withdrawals is coming at the backdrop of underperformance being recorded in the low income pension category, with the target enrollments completely off plan.
The scheme, one of the most strategic financial inclusion measures of the Federal Government packaged and implemented by the National Pension Commission, PenCom, had envisaged to enroll about nine million registrants by 2023, however only 114,382 contributors were registered as at end of 2023.
The data also show that total pension contributions to the micro pension stood at N680.2 million as at December 2023.
Consequently, as the economic hardship continues to bite harder, some micro pension contributors are taking advantage of the contingent withdrawal option of the plan to withdraw from their pension savings.
Meanwhile, quarterly breakdown of the withdrawals in 2023 show that micro pension contributors withdrew N2.98 million in Q1’23.
The figure went up by 3.7 per cent to N3.09 million in Q2’23 and in Q3’23, the figure further increased by 238.5 per cent to N10.46 million, but dropped in Q4’23 to N4.87 million, a 53.4 per cent decline.
Experts’ insight
Speaking on the development, Executive Director of the Center for Pension Rights Advocacy, Mr. Ivor Takor, stated that the rise in the withdrawals of pension savings could continue except government fixes the economy for the better.
He said: “The contingency plan is just part of encouragement for the contributors to know that if they are passing through any challenge, they can withdraw from the contingency plan.
“And the economy, like all of us know, is so bad, so the contributors cannot have that money standing there and they are dying of hunger or sickness.
“What the government can do is to fix the economy and do things well so that people will begin to have a meaningful life because even those of us who are working you cannot be having challenges and you have money in your savings account and you will not go for it. It is expected anyway, and the trend could continue. It can only improve and get better when the situation and welfare of citizens is better.”
Also speaking, Managing Director of Achor Actuarial Services, Mr. Pius Apere stated that the MPP is designed to bring the self employed members of the public into the pension system with a view to safeguarding them from retirement age poverty.
Apere said: “The government must do all within its power to turn the economy around for the better to prevent further withdrawals from pension savings. An average Nigerian must have one form of pension scheme or the order; formal or informal and the micro pension plan can help us to include more Nigerians in the financial safety net. Micro pension can be made a big deal in Nigeria”.
According to the Director-General, PenCom, Mrs. Aisha Dahir-Umar, “The implementation of the micro pension plan will improve the standard of living of the informal sector participants at retirement and reduce dependence on extended family for support at retirement.”
She noted that the self-employed people and workers in the informal sector could reap financial and economic protection by participating in the plan, as the initiative will provide income at old age and inculcate a savings culture through highly protected and regulated investment.
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Court sentences two Ekiti teachers to 44-year in prison for raping pupils
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A High Court in Ekiti, sitting in Ado Ekiti, has sentenced two teachers to 44 years of imprisonment for committing rape, without the option of a fine.
During the proceedings, the prosecution, represented by Kunle-Shina Adeyemi, stated that the defendants, Gbenga Ajibola, 43, and Olaofe Ayodele, 52, were charged before Justice Adeniyi Familoni on March 2, 2022, with three counts related to rape and the misuse of their authority.
The court was informed that the defendants had, in November 2019, raped two female students aged 17 and 15, whose names have been withheld for privacy reasons.
According to him, the offence contravened Section 31(2) of the Childs Right Law, Cap. C7, Laws of Ekiti State, 2012.
In her testimony before the court, one of the victims said that one of the convicts, Ajibola, was her computer teacher, and always disturbing her while in class.
“On this fateful day, he told me to be in mufti and gave me N200 to go and wait for him in front of a filling station along Bank Road. He later came there alongside Mr Olaofe, but before they came, one of my classmates also met me there, he told me that Mr Olaofe asked her to wait here for him. When they came, we all left for a hotel, around the Oke-Ila area of Ado Ekiti, on getting there, we were taken to different rooms where Mr Ajibola had sexual intercourse with me. After that day, he continued to disturb me, when I could no longer bear it, I narrated what happened to my mother who later took the matter up,” she narrated.
To prove his case, the prosecutor called four witnesses and tendered statements of the victims and defendants, medical reports, as well as report of the panel of enquiry among others as exhibits.
Also, Counsel to the defendants, Lawrence Fasanmi called six witnesses to prove his case.
In his judgement, Justice Familoni said, the defendants shared their minds and mulled the voice of conscience as they took advantage of the victims with reckless abandonment.
“They deserved severe panel sanction for their misdeeds to serve as a warning and deterrent to others who may want to follow their footsteps,”.
Justice Familoni thereby sentenced the defendants, Ajibola Gbenga and Olaofe Ayodele to 20 years imprisonment each without an option of fine on count one and two years each on count two without option of fine, making 44 years imprisonment, saying that it should run concurrently.
(NAN)
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Uba Sani no longer considered a friend anymore – El-Rufai
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Nasir El-Rufai, the former Governor of Kaduna State, has declared that he no longer maintains a friendship with his successor, Uba Sani.
This statement was made during an interview with Arise TV on Monday, marking Mr. El-Rufai’s first media appearance since concluding his term in 2023.
It is noteworthy that Governor Sani previously served as Mr. El-Rufai’s political adviser during his initial term from 2015 to 2019.
Mr El-Rufai then supported Mr Sani to replace Shehu Sani as the senator for the Kaduna Central district in 2019, before also supporting Mr Uba Sani in succeeding him in 2023.
In his Monday interview, Mr El-Rufai said the Kaduna governor was being used to fight him by Nuhu Ribadu, the National Security Adviser.
“Uba Sani has been my friend for many many years, but not anymore, because the concept of friendship is to be there for you when you need them the most. Uba Sani and Ribadu used to be my friends. But I think something happened. Not anymore.”
When asked if he is still relevant in Kaduna politics, Mr El-Rufai said time shall tell.
“If I am relevant in Kaduna State or not? Well, we will see who is more relevant when the time comes.”
On the investigation of his administration by the Kaduna State House of Assembly, Mr El-Rufai said nothing was found against him.
“I read the report of the Kaduna State Assembly that so so billions were siphoned. They did not state from where to where, money cannot just disappear. I told all my commissioners to calm down. We have been invited by ICPC, they found nothing yet. The EFCC has also done their investigation and nothing was discovered,” he said.
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Afenifere appoints Oba Oladipo Olaitan to succeed Ayo Adebanjo
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Pan-Yoruba socio-cultural organisation, Afenifere, has nominated Oba Oladipo Olaitan as the successor of the late Leader of the group, Chief Ayo Adebanjo.
This was contained in a communique jointly signed by Chief Sola Ebiseni and Justice Faloye, Secretary General and National Publicity Secretary of the group respectively and made available to newsmen in Akure, Ondo State capital on Tuesday.
The decision was taken at the regular monthly General Meeting of the group on Tuesday, February 25, 2025, at the country home of the late Leader, Chief Ayo Adebanjo at Isanya-Ogbo, Ogun State.
Oba Olaitan will be working in acting capacity until the final burial of the late Chief Ayo Adebanjo, who died at age 97 years old.
At the meeting, which was attended by delegates from the six South West states, Kogi, Kwara and the Itsekiri of Delta State, Afenifere, formerly formally briefed the delegates of the demise of The Leader, Chief Ayo Adebanjo.
They proudly acknowledged the enviable contributions of our the late Leader to nation-building as reflected by the glowing tributes in his memory from all walks of life within Nigeria and the world over.
Also, they commiserated with the children and the immediate family members of our Leader and applauded them for their untiring courteous engagement of large number of people who daily throng the Lekki, Lagos and Isanya-Ogbo, Ogun State residence of our great Leader.
At the meeting, the delegates “considered the recommendations of the National Caucus and approved the appointment of Oba Oladipo Olaitan as the new Leader of Afenifere.”
The communique reads in parts: “Oba Olaitan was called to the Nigerian Bar as a lawyer in 1971, a Political Adviser to Governor Lateef Jakande and member of the Lagos State Executive Council 1979-1983; elected Member House of Representatives and Leader of AD in the House 1999-2003.
“He has been a member of Afenifere for over 45 years serving in various capacities including the National Financial Secretary under the leadership of Chief Reuben Fasoranti and Deputy Leader under Chief Ayo Adebanjo.
“Oba Olaitan will function as the Leader in acting capacity till after the final burial of Papa Ayo Adebanjo when he will assume the office as substantive Leader.”
According to the communique, Oba Olaitan “in his acceptance speech, the new Leader committed himself to the ideals of Afenifere as a social political organisation and unrelenting advocate of restructuring and true federalism adding that he would ensure the unity of the organisation.”
Afenifere decried the incessant kidnap incidents between Ondo and Kogi states, charging the governor’s of both states to arrest the situation.
The communique reads: “Afenifere decried the worsening security situation in the country. Members received reports of a young man, Prince Eniola Ojajuni, the videos of whose ordeal, in the den of kidnappers have been on social media for almost a week.
“The Meeting called on the governments of Ondo and Kogi states around which common boundaries the kidnapping was reported to have taken place and the relevant security agencies to act without further delay and ensure the rescue and safety of the young man.”
The delegates at the meeting include The Leader, Oba Oladipo Olaitan, Senator Femi Okunrounmu, Senator Gbenga Kaka, former Deputy Governor of Ogun State, Pekun Awobona, Chief Tola Mobolurin, Tokunbo Ajasin, Engr. Bayo Adenekan, Hon Leke Mabinuori, Olayemi Olajuyinu; Olu Pessu, Chief Olusegun Olawoyin.
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