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 NASD Over-the-Counter (OTC) Securities Exchange made a marginal 0.01 per cent rise on Tuesday, April 29, pushing the Unlisted Security Index (NSI) up by 0.29 points to 3,282.42 points from the previous session’s 3,282.42 points.
Also, the market capitalisation of the trading platform increased slightly by N170 million to remain relatively unchanged at N1.922 trillion.
At the trading session, the bourse ended with two price gainers led by Geo-Fluids Plc, which chalked up 15 Kobo to sell at N2.13 per unit compared with the previous day’s N1.98 per unit, and Food Concepts Plc grew by 13 Kobo to settle at N1.29 per share compared with the N1.17 per share it was traded a day earlier.
However, Afriland Properties Plc lost N1.71 to close at N16.07 per unit versus the preceding day’s price of N17.78 per unit, and FrieslandCampina Wamco Nigeria Plc crumbled by 65 Kobo to finish at N37.50 per share, in contrast to Monday’s closing value of N38.15 per share.
The volume of securities traded in the session went up by 223.6 per cent to 2.2 million units from the 692,885 units transacted in the previous trading day, the value of transactions jumped by 70.8 per cent to N38.6 million from N22.6 million, while the number of deals fell by 18.4 per cent to 31 deals from 38 deals.
Impresit Bakolori Plc remained the most active stock by volume on a year-to-date basis with 533.9 million units worth N520.9 million, followed by Okitipupa Plc with 153.6 million units sold for N4.9 billion, and Industrial and General Insurance (IGI) Plc with a turnover of 71.2 million units valued at N24.2 million.
The most traded stock by value on a year-to-date basis was Okitipupa Plc with a turnover of 153.6 million worth N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with the sale of 14.7 million units for N566.9 million, and Impresit Bakolori Plc 533.9 million units valued at N520.9 million.
By Adedapo Adesanya
The Naira marginally appreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, April 11.
Data obtained by Business Post from the Central Bank of Nigeria (CBN) showed that the exchange rate closed at N1,601.04/$1 during the trading session compared with the previous day’s value of N1,601.38/$1, indicating that the Nigerian currency improved its value by 0.08 per cent or 34 Kobo against the greenback.
Also, against the Pound Sterling, the local currency appreciated yesterday by N5.57 to sell for N2,145.85/£1 versus Monday’s closing price of N2,186.65/£1 but against the Euro, it lost N5.00 to trade at N1,823.82/€1, in contrast to the N1,818.82/€1 it was exchanged a day earlier.
At the parallel market, the Nigerian Naira maintained stability against the US Dollar on Tuesday, remaining unchanged at N1,610/$1.
Meanwhile, the cryptocurrency market turned bearish yesterday after a wave of economic data suggests the US economic activity is slowing down due to the tariffs policies unleashed by the administration of President Donald Trump.
Consumer confidence, according to a survey by the Conference Board, is currently at its lowest level since May 2020, a period when the world was on lockdown.
However, there are evidence that negotiation of trade deals with other countries, could offer support.
Dogecoin (DOGE) depleted by 3.3 per cent to sell at $0.1740, Ripple (XRP) lost 2.6 per cent to quote at $2.22, Cardano slumped by 2.4 per cent to trade at $0.6955, Litecoin (LTC) went down by 1.9 per cent to finish at $84.89, and Solana (SOL) recorded a 1.4 per cent depreciation to close at $146.55.
Further, Ethereum (ETH) declined by 1.3 per cent to end at $1,779.01, Binance Coin (BNB) crumbled by 1.2 per cent to settle at $603.30, and Bitcoin (BTC) slipped by 0.2 per cent to trade at $94,682.75, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Dipo Olowookere
An additional N11.49 billion has been recovered by the House of Representatives Committee on Public Accounts from some oil companies operating in Nigeria.
A statement signed by the spokesman of the lower chamber of the National Assembly, Mr Akin Rotimi, said the total amount recovered from these energy firms is now N61.5 billion.
He stated that the recovered funds were from oil and gas companies with outstanding obligations to the federal government.
It was revealed that $182,057.44 (N291.29 million) was recovered from Platform Petroleum Limited, $730,889.37 (N1.17 billion) was from Midwestern Oil and Gas, N1.58 billion from Seplat Energy, $3.9 million (N6.1 billion) from Aradel Holdings, $500,000 (N775 million)
From Network Exploration & Production, and $1 million (N1.55 billion) from Shoreline Resources Limited.
According to the statement, the committee’s intensified efforts are anchored on findings from the Auditor-General’s reports and data obtained from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
These have informed sustained engagements with oil firms to ensure accountability for unremitted funds and outstanding liabilities.
The legislative arm of government also warned some organisations ignoring invitations to desist from such.
It said these defaulting firms collectively owe over $384 million and N325.7 million to the federal government, listing them as Neconde Energy Ltd – $110.5 million and N325.7 million, Heirs Holdings – $137.7 million, AITEO Ltd – $34.8 million, Continental Oil & Gas Ltd – $31 million, General Hydrocarbon – $28.4 million, Energia Ltd – $19.5 million, Waltersmith OML 16 – $8.7 million, Bilton – $5 million, Pillar Oil Ltd – $4.6 million, Millennium Oil and Gas Ltd – $2.067 million, Conoil Producing Ltd – $1.1 million, and Frontier OML 13 – $952,216.51.
“This Committee will not tolerate attempts by corporate entities to evade their responsibility to the Nigerian people.
“These companies are withholding billions of Naira owed to the federal government, and we will not allow them to disregard the authority of parliament.
“If these companies believe they are too big to be held accountable, they must understand that their licenses are at risk.
“We are prepared to recommend immediate revocation for any company that shows contempt for this Committee and the laws of the nation,” the chairman of the panel, Mr Bamidele Salam, fumed.
“No company is above the law. The funds being withheld are critical to the country’s growth and must not be hoarded while Nigeria suffers. Every company operating in Nigeria must settle its obligations promptly, as required by law,” he declared.
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