Economy
FG Slashes Ex-Nigerian Airways Workers’ Package by 45%
By Modupe Gbadeyanka
The final severance package of N78 billion for former workers of liquidated national carrier, Nigeria Airways, has been reduced by 45 percent, Daily Independent is reporting.
The paper, in its investigation, gathered that the Presidential Initiative on Continuous Audit (PICA) set up by President Muhammadu Buhari in its recommendation slashed the sum to just N43 billion.
However, Minister of State for Aviation, Mr Hadi Sirika, is vehemently against this development, insisting that the earlier approved sum of N78 billion must be paid to the beneficiaries.
Daily Independent is reporting that “the reduction of a massive N35 billion from the recommended and approved N78 billion by the Inter-Ministerial Committee is causing ripples in the presidency.”
Also, investigations by the paper reveal that this move may backfire for the Federal Government, which is contemplating on floating a new national carrier.
It was learnt that international creditors of the former carrier are preparing to sue the government over its plans to set up a new national carrier without first settling its old debts with them.
Since Nigerian Airways was liquidated in 2003 by President Olusegun Obasanjo, no fewer than 700 of the former workers had died of various illnesses.
Reduction of Severance Package
The Inter-Ministerial Committee set up by the Federal Government in 2006 had recommended the sum of N78 billion as the total severance package for 10 years for the workers, including pension arrears for the period after the physical verification of about 6,000 beneficiaries. But the Presidential Initiative on Continuous Audit (PICA) set up by President Muhammadu Buhari in its recommendation slashed the sum to just N43 billion, a 45 percent reduction.
PICA, at reaching the N43 billion, it was gathered, removed the 10 years pension arrears as agreed with the former workers, their unions and the Inter-Ministerial Committee.
However, the reduction of a massive N35 billion from the recommended and approved N78 billion by the Inter-Ministerial Committee is causing ripples in the presidency as the Minister of State for Aviation, Mr Hadi Sirika, is insisting that the earlier approved sum must be paid.
Agreement with Staff
Also, the former workers in one of their meetings with President Muhammadu Buhari had agreed to reduce the pension arrears to 10 years from the agreed 25 years during the time of the late President Umar Yar’Adua in 2009, but with a proviso that the 10 years pension arrears would be paid, which the government accented to.
Apart from the Nigerian staff of the airline, outstations like those in Rome, Saudi Arabia, Benin Republic, Cameroon, Dubai and all the French speaking countries in Africa would also benefit from the severance package, which have been lingering since the liquidation of the airline in 2003 by former President Olusegun Obasanjo.
Only employees of the former airline in United Kingdom and United States were paid their entitlements of 25 years severance package in full by the Federal Government.
Minister’s Letter to President
A document made available to Independent by a source close to the presidency dated August 10, 2016 with reference number Ref: TCA0036/S.I/T6/183, addressed to President Muhammadu Buhari by Mr Sirika vehemently negated the N43 billion recommendations by PICA.
Mr Sirika in the letter with the theme, ‘Settlement of the terminal benefits of ex-workers of Nigeria Airways (in-liquidation) – Appeal for Mr President Intervention,’ recalled that the Federal Executive Council (FEC) at its meeting of May 21, 2003, approved the liquidation of the airline vide Conclusion 35 and Council Resolution No. EC (2003) 145 following which Bureau for Public Enterprises (BPE) was directed to effect the liquidation.
Sirika, however, observed that before the company was liquidated, there was no proper determination of the worth of the company in terms of income on realisable assets vis-à-vis the liabilities in form of entitlements of staff that would be affected. Government insisted that the workers must be paid their entitlements in full.
The document indicated that the sum of N29.1 billion, which represented five years severance package, were paid to the former workers of the airline.
Mr Sirika in the letter to Buhari warned that Nigeria may never have a national carrier again until all the staff especially foreign nationals are paid off.
The letter reads in part: “Following from the above, the ministry arrived at a decision to compute additional 10 years pension pay-off to make up 15 years (being one of the options recommended by the Inter-Ministerial Committee), instead of the 20 years pay-off demanded by the ex-workers.
“To this end, the entitlements of all categories of beneficiaries were updated and verified in accordance with the inter-ministerial template.
“It is imperative that the liability is paid-off because if unpaid it may stall the resolve to create a national carrier as the international creditors of the defunct Nigeria Airways may sue the new entity as having tangential relationship with the former.”
Payment Will Stop Agitations
Besides, another document made available to Independent on the issue by a union, Aviation Unions Grand Alliance (AUGA), stated that with the full and final payment of the workers by the Federal Government all instituted court cases against the government would be dropped.
The document dated November 7, 2016 with reference number: AUGA/NUPF.1/16/FMA was signed by seven leaderships of the ex-workers of the liquidated carriers— Capt. M.O. Wekpe, Chairman of National Association of Aircraft Pilots and Engineers (NAAPE) for pilots; Engr. L.O. Animashaun, Chairman of NAAPE (Engineers) and Comrade I.N Wusaini, Chairman of Air Transport Services Senior Staff Association of Nigeria (ATSSSAN).
Others are Comrade Lucky Engbele, Chairman of the National Union of Air Transport Employees (NUATE); Comrade Sam Nzene, Chairman, National Union of Pensioners (NUP); Engr. O. Animashaun, Chairman of AUGA and Comrade Sam Nzen, Chairman of NUP.
The document reads in part: “The approval and subsequent payment of supplementary compilation, 33 percent pension increases, outstanding pension arrears and additional 10 years pension pay off to all categories of our members will bring to a close all agitations from the above-mentioned unions.”
Source: Daily Independent.
By Adedapo Adesanya
The Vice President, Mr Kashim Shettima, inaugurated the Board of the Nigerian Consumer Credit Corporation (CREDICORP) and gave a 50 per cent access target for workers, saying consumer credit was critical to Nigeria’s ambition of becoming a one-trillion-dollar economy by 2030.
According to him, President Bola Tinubu established the CREDICORP to build a trusted credit infrastructure, provide catalytic capital to lower borrowing costs, and help Nigerians overcome long-standing cultural resistance to credit.
Speaking on Thursday in Abuja when he inaugurated the board on behalf of the President, the Vice President, in a statement by his spokesman, Mr Stanley Nkwocha, said that the quality of life of Nigerians cannot improve without closing the gap between access to capital and human dignity.
“A civil servant who earns honestly does not have to chase sudden wealth just to buy a vehicle, or save for ten years to buy one. A young professional should not remain in darkness simply because solar power must be paid for all at once,” the Vice President said.
VP Shettima disclosed that in just one year of operations, CREDICORP has disbursed over ₦37 billion in consumer credit to more than 200,000 Nigerians, with over half of them accessing formal credit for the first time.
The Vice President said the organisation was specifically tasked with building credit infrastructure to bridge the trust gap between lenders and borrowers, providing wholesale capital and credit guarantees through its portfolio company.
“Ultimately, these critical jobs of CREDICORP will enable access to consumer credit to at least 50 per cent of working Nigerians by 2030,” he said.
The Vice President explained that the new board’s role was not ceremonial as they are custodians of the organisation’s mission, adding that the long-term strength of the institution would depend on their “vigilance, integrity, sacrifice, and commitment.”
He directed Board members to uphold Public Service Rules, the Board Charter, and all applicable governance frameworks, warning that accountability and stewardship of public resources were non-negotiable.
The Chairman of CREDICORP, Mr Aderemi Abdul, expressed appreciation to President Tinubu for his vision behind the formation of CREDICORP and for the confidence reposed in them, noting that the establishment of the corporation marked an important step towards strengthening the nation’s financial architecture.
He assured President Tinubu that the board understands its responsibility and will guide the institution to deliver meaningful benefits to Nigerians.
For his part, Mr Uzoma Nwagba, Managing Director/CEO of CREDICORP, recalled watching President Tinubu say 20 years ago that consumer credit is one of the major tools that will improve the lives of Nigerians.
He noted that over the past 18 months, the institution has benefited more than 200,000 Nigerians, including students.
He assured that the presidential vision behind CREDICORP would not be taken lightly, as the team considers their appointments a unique, once-in-a-lifetime opportunity.
Other members of the board inaugurated include Mrs Olanike Kolawole, Executive Director, Operations; Mrs Aisha Abdullahi, Executive Director, Credit and Portfolio Management; Mr Armstrong Ume-Takang (MD, MoFI), Representative of MoFI; Mrs Bisoye Coke-Odusote (DG, NIMC), Representative of NIMC; and Mr Mohammed Naziru Abbas, Representative of FMITI.
Others are Mr Marvin Nadah, Representative of FCCPC; Mrs Chinonyelum Ndidi, Representative of the Federal Ministry of Finance; Mr Mohammed Abbas Jega, Independent Director; and Mrs Toyin Adeniji, Independent Director.
By Adedapo Adesanya
Six price gainers helped the NASD Over-the-Counter (OTC) Securities Exchange retain its stay in green territory after a 0.23 per cent appreciation on Thursday, February 26.
The price gainers were led by Nipco Plc, which added N25.00 to close at N278.00 per share compared with the previous day’s N253.00 per share, NASD Plc rose by N5.13 to N56.41 per unit versus N51.28 per unit, FrieslandCampina Wamco Nigeria Plc expanded by N2.24 to N102.44 per share from N100.00 per share, Afriland Properties Plc grew by 88 Kobo to N18.88 per unit from N18.00 per unit, 11 Plc increased by 35 Kobo to N277.00 per share from N276.65 per share, and Lagos Building Investment Company (LBIC) Plc gained 27 Kobo to close at N3.75 per unit versus N3.48 per unit.
On the flip side, Central Securities Clearing System (CSCS) Plc lost N1.75 to sell at N68.25 per share versus N70.00 per share, and Geo-Fluids Plc depreciated by 2 Kobo to N3.25 per unit from N3.27 per unit.
The weight of the advancers fortified the NASD Unlisted Security Index (NSI) by 9.21 points to 4,034.46 points from 4,025.25 points, and the market capitalisation soared by N5.51 billion to N2.413 trillion from Wednesday’s N2.408 trillion.
Yesterday, the transaction value jumped by 18.8 per cent to N102.8 million from N80.7 million, and the number of deals surged by 18,8 per cent to 38 deals from 32 deals, while the transaction volume went down by 84.9 per cent to 1.3 million units from 8.7 million units.
At the close of business, CSCS Plc was the most traded stock by value (year-to-date) with 34.2 million units worth N2.04 billion, followed by Okitipupa Plc with 6.3 million units sold for N1.1 billion, and Geo-Fluids Plc with 122.1 million units valued at N478.2 million.
Resourcery Plc remained as the most traded stock by volume (year-to-date) with 1.05 billion units exchanged for N408.7 million, trailed by Geo-Fluids Plc with 122.1 million worth N478.2 million, and CSCS Plc with 34.2 million units traded for N2.04 billion.
By Adedapo Adesanya
The Naira further weakened against the Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) for the fourth straight session this week on Thursday, February 26.
At the official market yesterday, the Nigerian Naira lost N3.71 or 0.27 per cent to trade at N1,359.82/$1 compared with the previous session’s N1,356.11/$1.
In the same vein, the local currency depreciated against the Pound Sterling in the same market window on Thursday by N8.27 to close at N1,843.23/£1 versus Wednesday’s closing price of N1,834.96/£1, and against the Euro, it crashed by N8.30 to quote at N1,606.89/€1, in contrast to the midweek’s closing price of N1,598.59/€1.
But at the GTBank forex desk, the exchange rate of the Naira to the Dollar remained unchanged at N1,367/$1, and also at the parallel market, it maintained stability at N1,365/$1.
The continuation of the decline of the Nigerian currency is attributed to a surge in foreign payments that have outpaced the available Dollars in the FX market.
In a move to address the ongoing shortfall at the official window, the Central Bank of Nigeria (CBN) intervened by selling $100 million to banks and dealers on Tuesday.
However, the FX support failed to reverse the trend, though analysts see no cause for alarm, given that the authority recently mopped up foreign currency to achieve balance and it is still within the expected trading range of N1,350 and N1,450/$1.
As for the cryptocurrency market, major tokens posted losses over the last 24 hours as traders continued to de-risk alongside equities following Nvidia’s earnings-driven pullback, with Ripple (XRP) down by 2.7 per cent to $1.40, and Dogecoin (DOGE) down by 1.6 per cent to $0.0098.
Further, Litecoin (LTC) declined by 1.3 per cent to $55.87, Ethereum (ETH) slipped by 0.9 per cent to $2,036.89, Bitcoin (BTC) tumbled by 0.7 per cent to $67,708.21, Cardano (ADA) slumped by 0.6 per cent to $0.2924, and Solana (SOL) depreciated by 0.4 per cent to $87.22, while Binance Coin (BNB) gained 0.4 per cent to sell for $629.95, with the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closing flat at $1.00 each.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn