Economy
REVEALED: Real Reasons for Delay in Payment of Ex-Nigeria Airways Workers
By Olusegun Koiki
Daily Independent newspaper has unearthed the real reasons former workers of the defunct Nigerian Airways are yet to receive the severance package despite President Muhammadu giving the approval for the payment.
It was gathered that the conflict between the Office of the Accountant General of the Federation (OAGF) and the Presidential Initiative on Continuous Audit (PICA), a department under the Ministry of Finance, is stalling final payment of severance benefit to ex-workers of the defunct national carrier, Nigeria Airways.
Independent learnt that the conflict between the two government bodies is as a result of who gets the administrative charge from the severance package of the ex-workers.
Recommendations
The inter-ministerial committee raised by the government verified the status of ex-workers of Nigeria Airways and came up with N78 billion benefit for the former staff of the airline. The committee recommended one percent administrative charge of the total sum to be given to any government agency that disburses the money to the ex-workers. This amounted to N735 million.
In its recommendation, the inter-ministerial committee also said that the OAGF should disburse the N78 billion to all the beneficiaries.
However, PICA in its own recommendation to President Muhammadu Buhari reduced the total benefit to N43 billion, but increased the administrative charge to N2.1 billion without recourse to any percentage as recommended by the inter-ministerial committee.
Breakdown Of Benefit
A document seen by Independent revealed the breakdown of the N78 billion benefit thus: serving staff, N20.9 billion; presidential fleet, N1.4 billion; Skypower Aviation Handling Company Limited (SAHCOL), N4 billion; retired staff from SAHCOL, N207.7 million; properties, N1 billion and catering, N1.1 billion.
Others are pensioners, N37.3 million; deferred pensioners, N920.5 million; 1988 Group, N6.4 billion; one percent administrative charge, N735 million; one percent mark-up contingencies, N735 million; salary of four retained staff working on the benefit for 12 months, N10.5 million; office running cost at N100,000 monthly for 12 months, N1.2 million and supplementary at N3 billion.
Interest In Administrative Charge
A reliable source told Independent that PICA, which was set up by President Buhari in 2015, few months after coming into office to carry out final verification of any payment by the Federal Government suddenly became interested in payment of the severance package to the former workers of the airline because of the administrative charge involved.
The document revealed that the inter-ministerial committee 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.
The workers had initially insisted on another 20 years payment of severance package as agreed with the Federal Government in 2009 before the payment of five years of severance package to them by the late President Umaru Yar’Adua in 2009.
PICA in its recommendation to the government slashed the sum to just N43 billion, and expunged the 10 years pension arrears as agreed with the former workers and their unions by the inter-ministerial committee.
Anger
However, sources said the reduction of a massive N35 billion from the recommended and approved N78 billion by the inter-ministerial committee did not go down well with the Minister of State for Aviation, Hadi Sirika, who insisted that the earlier approved sum must be paid.
A source close to the committee confided in our correspondent that the Federal Government was ready to pay the total sum to the ex-workers who have lost at least 700 of their members since the airline was liquidated in 2013 to avoidable deaths, but PICA is a stumbling block to that payment, which has further put the government in a dilemma.
The source wondered how PICA arrived at the N2.1 billion administrative charge after reducing the total sum to be paid to the ex-workers to N43 billion which represented 45 percent reduction.
“PICA is the only body that is standing between the payment of the final severance package to us and the government. President Buhari has agreed to pay the total sum to us until everything was taken to PICA for final verification.
“PICA without following due process, suddenly reduced our total benefit to just N43 billion, but ironically increased its own administrative charge to N2.1 billion, which is a difference of N1.3 billion. And the government thinks they can come up with a national carrier without first settling us, I think that will be practically impossible.
“Several bodies are ready to take the government to court even outside the country. I can assure you that anywhere their aircraft flies to such an aircraft would be impounded until all debts are settled. We are talking of ex-workers in Europe and several other African countries. Some of them are already in court to ensure their payments. PICA is not helping matters and may make the case worse for impending investors.”
It would be recalled that apart from the Nigerian staff of the airline who are owed pension arrears, outstations like those in Rome, Saudi Arabia, Benin Republic, Cameroon, Dubai and all the French speaking countries in Africa are also yet to benefit from the severance package.
Only staff of the airline in United Kingdom and United States were paid their entitlement of 25 years severance package in full.
The total sum of N29.1 billion, which represented five years severance package was paid to the former workers of the airline by the late Yar’Adua in 2009 after years of agitation by the ex-workers.
Source: Daily Independent
By Adedapo Adesanya
Food Concepts Plc neutralized the gains recorded by three securities, returning the NASD Over-the-Counter (OTC) Securities Exchange into the negative territory with a 0.27 per cent loss on Thursday, December 4.
Yesterday, the share price of the parent company of Chicken Republic and PieXpress declined by 34 Kobo to sell at N3.15 per unit compared with the previous day’s N3.49 per unit.
This shrank the market capitalisation of the OTC bourse by N5.72 billion to N2.136 billion from N2.142 trillion and weakened the NASD Unlisted Security Index (NSI) by 9.57 points to 3,571.53 points from 3,581.10 points.
Business Post reports that Central Securities Clearing System (CSCS) Plc went down by 50 Kobo to N38.50 per share from N38.00 per share, FrieslandCampina Wamco Nigeria Plc gained 29 Kobo to sell at N55.79 per unit versus N55.50 per unit, and Geo-Fluids Plc added 5 Kobo to close at N4.60 per share compared with Wednesday’s closing price of N4.55 per share.
Trading data indicated that the volume of securities recorded at the session surged by 6,885.3 per cent to 4.3 million units from the 61,570 units posted a day earlier, the value of securities increased by 10,301.7 per cent to N947.2 million from N3.3 million, and the number of deals went up by 146.7 per cent to 37 deals from the 15 deals achieved in the previous trading session.
At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value on a year-to-date basis with the sale of 5.8 billion units for N16.4 billion, trailed by Okitipupa Plc with 170.4 million units worth N8.0 billion, and Air Liquide Plc with 507.5 million units valued at N4.2 billion.
InfraCredit Plc also finished the session as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.
By Dipo Olowookere
The upward trend witnessed at the Nigerian Exchange (NGX) Limited in recent sessions continued on Thursday as it further improved by 0.10 per cent.
This was despite investor sentiment turning bearish after the local equity market ended with 23 price gainers and 28 price gainers, indicating a negative market breadth index.
UAC Nigeria gained 10.00 per cent to finish at N88.00, Morison Industries appreciated by 9.94 per cent to N3.54, Ecobank rose by 8.53 per cent to N36.90, and Coronation Insurance grew by 8.47 per cent to N2.56.
On the flip side, Ellah Lakes depreciated by 10.00 per cent to N13.14, Eunisell Nigeria also shed 10.00 per cent to finish at N72.90, Transcorp Hotels slipped by 9.95 per cent to N157.50, Omatek shrank by 9.23 per cent to N1.18, and Guinea Insurance dipped by 8.46 per cent to N1.19.
Yesterday, the All-Share Index (ASI) went up by 152.28 points to 145,476.15 points from 145,323.87 points and the market capitalisation chalked up N97 billion to finish at N92.726 trillion compared with the previous day’s N92.629 trillion.
Customs Street was bubbling with activities on Thursday, though the trading volume and value slightly went down, according to data.
A total of 1.9 billion stocks worth N19.2 billion exchanged hands in 23,369 deals during the session versus the N2.3 billion valued at N21.0 billion traded in 21,513 deals a day earlier.
This showed that the number of deals increased by 8.63 per cent, the volume of transactions depleted by 17.39 per cent, and the value of trades decreased by 8.57 per cent.
For another trading day, eTranzact led the activity chart with 1.6 billion units sold for N6.4 billion, Fidelity Bank traded 31.0 million units worth N589.3 million, GTCO exchanged 28.3 million units valued at N2.5 billion, Zenith Bank transacted 27.1 million units for N1.6 billion, and Ecobank traded 21.9 million units worth N744.3 million.
By Adedapo Adesanya
The Naira marginally depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, December 4 amid renewed forex pressure associated with December.
At the official market yesterday, the Nigerian currency lost 0.01 per cent or 18 Kobo against the Dollar to close at N1,447.83/$1 compared with the previous day’s N1,447.65/$1.
It was not a different scenario with the local currency in the same market segment against the Pound Sterling as it further shed N15.43 to sell for N1,930.97/£1 versus Wednesday’s closing price of N1,925.08/£1 and declined against the Euro by 20 Kobo to finish at N1,688.74/€1 compared with the preceding session’s N1,688.54/€1.
Similarly, the Nigerian Naira lost N5 against the greenback in the black market to quote at N1,465/$1 compared with the previous day’s value of N1,460/$1 but closed flat against the Dollar at the GTBank FX counter at N1,453/$1.
Fluctuations in trading range is expected to continue during the festive season as traders expect the Nigerian currency to be stable, supported by intervention s by to the Central Bank of Nigeria (CBN)in the face of steady dollar demand.
Support is also expected in coming weeks as seasonal activities, particularly the stylised “Detty December” festivities, will see inflows that will give the Naira a boost after it depreciated mildly last month, according to a new report.
“As the festive Detty December season intensifies, inbound travel, tourism spending, and diaspora inflows are expected to provide moderate support for FX liquidity,” analysts at the research unit of FMDA said in its latest monthly report for November.
Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450 next week, buoyed by improved FX interventions by the apex bank.
Meanwhile, the crypto market was down as the US Federal Reserve’s preferred inflation gauge, core PCE, likely rose in September—moving in the wrong direction. However, volatility indices show no signs of major turbulence.
If the actual figure matches estimates, it would mark 55 straight months of inflation above the US central bank’s 2 per cent target. The sticky inflation would strengthen the hawkish policymakers, who are in favour of slower rate cuts.
Ripple (XRP) depreciated by 4.5 per cent to $2.08, Solana (SOL) went down by 3.8 per cent to $138.11, Litecoin (LTC) shrank by 3.1 per cent to $83.23, Dogecoin (DOGE) slid by 2.5 per cent to $0.1463, Cardano (ADA) declined by 2.1 per cent to $0.4368, Bitcoin (BTC) fell by 0.9 per cent to $91,975.45, Binance Coin (BNB) crumbled by 0.9 per cent to $899.41, and Ethereum (ETH) dropped by 0.7 per cent to $3,156.44, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
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