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
Nigeria Commiserates With South Korea On Tragic Plane Crash
News
Sad! 96 die in South Korea plane crash
A Jeju Air plane carrying 181 people from Bangkok to South Korea crashed on arrival Sunday, colliding with a barrier and bursting into flames, with only two survivors rescued so far and 96 confirmed dead.
A collision with birds and adverse weather conditions were cited by the authorities as likely causes of the crash that flung passengers out of the plane and left it “almost completely destroyed”, according to fire officials.
Video showed the Jeju Air plane landing on its belly without wheels at Muan International Airport, skidding off the runway as smoke streamed out from the engines, before crashing into a wall and exploding in flames.
“Passengers were ejected from the aircraft after it collided with the barrier, leaving little chance of survival,” a local fire official told families at a briefing, according to a statement released by the fire brigade.
“The plane is almost completely destroyed, and identifying the deceased is proving difficult. The process is taking time as we locate and recover the remains,” he was quoted as saying.
“So far, two people rescued — both are flight attendants — 96 dead,” the fire department said, revising an earlier statement that said one of the survivors was a passenger.
A photo showed the tail section of the plane — a Boeing 737-8AS according to Flight Radar — engulfed in flames on what appeared to be the side of the runway, with firefighters and emergency vehicles nearby.
“The cause of the accident is presumed to be a bird strike combined with adverse weather conditions. However, the exact cause will be announced following a joint investigation,” Lee Jeong-hyun, chief of Muan fire station, said during a briefing.
A response team officer at the local fire department, Lee Hyeon-ji said rescue authorities had evacuated passengers from the rear section of the jet.
The Muan International Airport is in Muan county, which is about 288 kilometres (179 miles) southwest of Seoul.
The fire agency said it had mobilised 32 fire engines and scores of fire fighters to the scene.
The accident took place at 9:03 am (0003 GMT) on Sunday during the landing of Jeju Air Flight 2216, the Ministry of Land said.
“A total of 175 passengers — including two Thai nationals — and six crew members were onboard,” it said.
The initial fire was extinguished and a search and rescue operation was “under way at the crash site”, it said in a statement at around 11:00 am local time.
Low-cost carrier Jeju Air apologised and vowed to do all it could to help.
“We at Jeju Air will do everything in our power in response to this accident. We sincerely apologise for causing concern,” the airline said in a statement posted on its social media channels.
– Engulfed in flames –
Acting President Choi Sang-mok called for the mobilisation of all resources to save the passengers.
“All related agencies… must mobilise all available resources to save the personnel,” he instructed officials in a statement.
Choi convened an emergency meeting with cabinet members to discuss rescue operations and response before heading to Muan, his office said.
“I believe no words of consolation would suffice for the bereaved families who have suffered this tragedy,” said Choi, who took office only on Friday.
“The entire government is working closely together to manage the aftermath of the accident, dedicating all available resources, while making every effort to ensure thorough support for the bereaved families,” he added.
It is the first fatal accident in the history of Jeju Air, one of South Korea’s largest low-cost carriers, which was set up in 2005.
On August 12, 2007, a Bombardier Q400 operated by Jeju Air carrying 74 passengers came off the runway due to strong winds at the southern Busan-Gimhae airport, resulting in a dozen injuries.
South Korea’s aviation industry has a solid track record for safety, experts say.
Last year, a passenger opened an emergency exit on an Asiana Airlines flight as it was preparing to land, with the aircraft landing safely but several people hospitalised.
A number of fatal aviation accidents have occurred globally due to bird strikes, which can cause a loss of power if the animals are sucked into the air intakes.
In 2009, a United States Airways Airbus A320 famously landed in New York’s Hudson River after bird strikes on both of its engines, in an incident widely known as the “Miracle on the Hudson” because there was no loss of life.
News
Nigerian Hospital to begin kidney transplant in 2025 – CMD
The Ahmadu Bello University Teaching University (ABUTH) Zaria is set to commence kidney transplant surgeries in 2025 towards bringing relief to patients with kidney failure and reversing medical tourism.
The Chief Medical Director of the hospital, Ahmed Umdagas, made this known in an interview with the News Agency of Nigeria (NAN) on Sunday in Zaria.
Mr Umdagas said the Urology Centre of Excellence would be ready by the first quarter of 2025 to offer high-quality urology services.
“By the first quarter of 2025, ABUTH would commence kidney transplant. What was just holding us back was a few infrastructure.
“Besides that, most of the machines and equipment for kidney transplant were available and our personnel have been adequately trained to offer the services,’’ he said.
Mr Umdagas added that aside from the urology centre, there would also be an Amenity Wing that can take any class of patients.
According to him, the amenity wing will have a single-bed room, a room and parlour for the affluent patients; stressing that ABUTH was determined to offer global-best services.
Mr Umdagas said, “The amenity wing would have a dedicated line and a website; the website will have the profile of doctors in the hospital.
“When a patient wants to see a certain professor or specialist what he will just do is to make a call on the dedicated line or the website to see him seamlessly.”
Similarly, the CMD said a contract had been awarded for the procurement of linear machines to enhance cancer care at the facility.
While speaking on additional efforts to reverse medical tourism, the chief medical director said ABUTH had a fully functional 128 Slice CT Scan machine.
He said, “If you are doing investigation abroad that requires the use of the 128 slice CT Scan, one must pay an amount not lower than $200 which is over N300,000 while ABUTH charges for such service is just N30,000”
The CMD disclosed that many patients were coming to ABUTH to do the scan, take it abroad and continue their treatments.
“We also have 1.5 Tesla MRI and 0.2 Tesla MRI machines which are high imaging machines.
“They are fully functional at the hospital and the cost for such services was far below what is being charged in other places within Nigeria.
“We also do lithotripsy at ABUTH which is breaking stones by laser instead of a surgery,’’ he said.
Mr Umdagas said the hospital had celebrated over five successful IVF cases in collaboration with its partners.
According to him, the hospital plans to build a unit that would house all the necessary equipment for IVF services in its subsequent budgets.
(NAN)
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