News
Economic hardship: Massive contingency withdrawals hit micro pension funds
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.
News
Okorocha, hale, hearty, says aide, dismisses death rumour
Rumours that former Imo Governor Senator Rochas Okorocha is dead has been dismissed by his aide, Mr. Ebere Nzeworji.
Nzeworji said Okorocha is alive and well, putting the false social media claims to rest.
According to Nzeworji, Okorocha was attending to his normal duties at his Unity House Garki Abuja office when the fake news started circulating.
He clarified that the former Governor had just returned from Owerri, Imo State where he attended the funeral ceremony of elder statesman Emmanuel Iwuanyanwu and hosted Deputy Speaker Benjamin Kalu and other Reps members.
Nzeworji urged the public to disregard the “wicked lies from mischief makers” and confirmed that Okorocha is continuing his humanitarian work and private business duties without interruption.
Nzeworji reassured the public that the former Governor is “hale and hearty.”
The false report, which first emerged on Wednesday evening, November 6, alleged that Okorocha had died in a London hospital.
He said: “Okorocha had attended the funeral of the late elder statesman, Chief Emmanuel Iwuanyanwu, on Friday, November 1, and subsequently hosted the Deputy Speaker of the House of Representatives, Hon. Benjamin Kalu, along with other lawmakers, at his residence in Owerri.
“These activities demonstrate that Okorocha was in good health and actively engaged in public affairs.”
Nzeworji questioned the motives behind the spread of such baseless rumors, noting that “one can now begin to wonder about the intentions of those behind this fake news.”
He emphasised that Okorocha, who has served Nigeria at the state and national levels, is well-known for his positive contributions and commitment to the well-being of others.
The aide also reminded the public that Okorocha has always been a “cheerful and caring” individual who holds no ill will towards anyone.
He urged Imo people, Nigerians and the global communities to disregard the false report and reassured them that Okorocha is alive and in good health.
News
Otti renames Abia Poly after late Onu
Gov. Alex Otti, has renamed the Abia State Polytechnic, Aba, after the first governor of the state, late Dr Ogbonnaya Onu.
Otti made the announcement on Thursday, during a Commendation Service held in honour of the deceased at the International Conference Center, Umuahia.
The News Agency of Nigeria (NAN) reports that Onu, who passed away in April at the age of 72, also served as the Minister for Science, Technology and Innovation.
The governor said that late Onu made significant contributions to the development of the state and nation at large.
“We as a state have decided to immortalize him by renaming the Abia State Polytechnic, Aba after him.
“The Polytechnic will henceforth be known as Dr Ogbonnaya Onu Polytechnic, Aba,”he said.
The governor added that the deceased made significant contributions to Abia’s development.
This, he said was especially with the founding of the Abia State Polytechnic, the Abia State College of Education (Technical), and supporting the establishment of Michael Okpara University of Agriculture (MOUAU).
“The simultaneous establishment of these institutions in the three senatorial districts of the state speaks to Dr Onu’s distinction as a strategic leader.
“He was a leader that understood the connection between institutions of learning and the development of the critical manpower necessary for holistic and widespread economic growth,” he said.
Otti recalled that late Onu’s act of patriotism in 1999 when he sacrificed his presidential bid for national unity, adding that the deceased showed great commitment to Nigeria’s future.
“He loved the country and its democratic future more than his desire to occupy the exalted seat of the presidency.
“Dr Onu was by every measure, qualified to serve this country as its president at the dawn of the Fourth Republic and had a good run at it.
“He only had to let go of his ambition when circumstances contrived against it but he still found other veritable ways of serving the country he loved so dearly.
“He was an important voice for democracy, a true nationalist and patriot who saw beyond the narrow prism of ethnicity and religion.
“He saw every Nigerian as a citizen who has the right to pursue their economic and social aspirations from any part of the country, unrestricted by individual or institutional biases,”Otti said.
He said Onu’s demise had created a social and political void that would be very difficult to fill.
Otti prayed God to grant the family of the deceased and the people of Ebonyi State the fortitude to bear the loss and urged them to emulate his life of service and integrity.
In a homily, the Bishop of Umuahia Catholic Diocese, His Lordship Michael Ukpong, emphasised the need for all to live responsibly.
Ukpong said that the former governor positively impacted lives and left indelible marks in Abia.
He said the deceased would be remembered for many reasons including contributions such as attracting the rebuilding of the Abia Tower of Peace, establishment of Broadcasting Corporation of Abia, National Ambassador among others.
The News Agency of Nigeria (NAN) reports that the event attracted dignitaries including chairman, National burial planning committee, Sen. Anyim Pius Anyim among others.
(NAN)
News
Media can now access funds from BoI — Tinubu
President Bola Ahmed Tinubu has asserted that the media is not left out of the Renewed Hope agenda of the Federal Government.
He said media organisations can now also access funds from the Bank of Industry at a single-digit interest rate, for the development and expansion of their businesses.
President Tinubu stated this at the opening ceremony of the All Nigerian Editors Conference in Yenagoa, Bayelsa State capital, on Thursday.
Represented by the Minister of Information and National Orientation, Alhaji Mohammed Idris, the President applauded the role of the media in the fight to to enthrone democracy and the successes recorded in the 25 years of its uninterrupted journey, saluting their longstanding legacy of deeply committed contributions to nation building.
He said the democracy that Nigeria enjoys today would not be possible without the media, just as he saluted media personalities and individual whose collective efforts not just at that time, but even right through to today, as the country celebrates a quarter of a century of unbroken democratic experience.
Tinubu said as someone who was privileged to be in the thick of the pro-democracy struggle, with a front-row view of how it played out, he would always acknowledge the very important role of the media in the struggle.
The President said: “Indeed, in this room are many veteran journalists who played very important roles in ushering in the age of enduring democracy in Nigeria. I salute your individual and collective efforts not just at that time, but even right through to today, as we celebrate a quarter of a century of unbroken democratic experience.
“In any thriving democracy, the roles of the government and the media are intertwined, both essential in serving the public interest. And of course, the media has a duty to hold elected and appointed officials accountable, and ensure that we are doing our work in a manner that strengthens democracy – not weakens it.
“That important work must be done in a spirit of mutual respect and collaboration, not recrimination and opposition; this alignment enables us to achieve common goals that benefit society at large.
“Indeed, our roles are most effective when they are not adversarial but cooperative. By viewing each other as allies in nation-building, we can create an environment where transparency, accountability, and mutual respect thrive.
“Together, the government and the media can empower citizens, strengthen democratic institutions, and build a more informed and resilient society.
“As we gather to discuss a theme that is both timely and urgent, ‘Economic Growth and Development Strategies in a Resource-Rich Country,’ we find ourselves at a critical juncture in our nation’s journey toward sustainable growth and prosperity.
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