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 Dipo Olowookere
About 0.04 per cent was recovered on Friday from the loss recorded by the Nigerian Exchange (NGX) the previous due to profit-taking.
Yesterday, investors were in the market with renewed vigour, mopping up stocks trading at relatively cheaper prices.
According to data, the insurance counter gained 0.41 per cent, the banking sector appreciated by 0.38 per cent, and the consumer goods index grew by 0.14 per cent.
The gains achieved by these three sectors were enough to lift Customs Street at the close of business despite the 0.26 per cent decline printed by the industrial goods segment and the 0.14 per cent loss suffered by the energy industry. The commodity counter was flat during the session.
A total of 43 equities gained weight on the last trading day of this week, while 26 equities shed weight, indicating a positive market breadth index and strong investor sentiment.
Red Star Express increased its share price by 10.00 per cent to N13.20, NCR Nigeria grew by 9.97 per cent to N128.55, SCOA Nigeria inflated by 9.96 per cent to N14.90, Omatek appreciated by 9.94 per cent to N1.77, and Deap Capital expanded by 9.85 per cent to N4.46.
On the flip side, McNichols decreased by 8.81 per cent to N6.00, Legend Internet crumbled by 7.56 per cent to N5.50, Cornerstone Insurance crashed by 6.48 per cent to N6.35, C&I Leasing contracted by 6.29 per cent to N8.20, and Austin Laz slipped by 5.78 per cent to N3.75.
Yesterday, 539.9 million shares valued at N16.7 billion were transacted in 48,023 deals versus the 1.0 billion shares worth N31.6 billion executed in 51,227 deals in the preceding day, implying a shrink in the trading volume, value, and number of deals by 46.01 per cent, 47.15 per cent, and 6.26 per cent apiece.
Zenith Bank was the most active for the day with 54.6 million stocks sold for N3.8 billion, Jaiz Bank traded 41.5 million units worth N359.4 million, Secure Electronic Technology transacted 37.7 million units valued at N39.2 million, Access Holdings exchanged 30.5 million units for N699.2 million, and Lasaco Assurance transacted 27.2 million units worth N68.3 million.
When the market closed for the day, the All-Share Index (ASI) went up by 72.21 points to 166,129.50 points from 166,057.29 points and the market capitalisation gained N31 billion to N106.354 trillion from N106.323 trillion.
By Adedapo Adesanya
It was a positive ending for the Naira this week after it further appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, January 16 by N1.33 or 0.09 per cent to sell for N1,417.95/$1 compared with the previous day’s N1,419.28/$1.
The domestic currency also gained N2.41 against the Euro in the official market to close at N1,647.51/€1 versus the preceding session’s closing price of N1,649.92/€1, however, it suffered a N7.97 loss against the Pound Sterling in the same market window to trade at N1,901.32/£1, in contrast to Thursday’s closing price of N1,893.35/£1.
In the same vein, the Nigerian Naira depleted against the Dollar at the GTBank FX counter by N2 to quote at N1,427/$1 compared with the previous day’s N1,425/$1, but strengthened against the greenback at the black market yesterday by N5 to settle at N1,485/$1 versus the N1,490/$1 it was exchanged a day earlier.
Improved supply conditions helped keep the market within range as exporters’ and importers’ inflows in addition to non-bank corporate supply enhanced liquidity as the Central Bank of Nigeria (CBN) made no visible intervention.
Stronger external inflows from foreign portfolio investors (FPIs) and improving current account dynamics, continue to align with structural support in the wider economy.
Nigeria has seen projections of a stronger economic or gross domestic product (GDP) growth and lower inflation in 2026, with these forecasts citing improved macroeconomic fundamentals and reform impacts.
As for the cryptocurrency market, it was mixed following selloff in precious metals and lower US stocks appeared to be denting crypto sentiment.
Gold and silver, both of which also enjoyed big rallies earlier this week, tumbled 1.2 per cent and 5 per cent, respectively while key US stock indexes — the Nasdaq, S&P 500 and Dow Jones Industrial Average — all reversed from early gains to modest losses in Friday trade.
Dogecoin (DOGE) shrank by 2.2 per cent to $0.1370, Ripple (XRP) slipped by 0.8 per cent to $2.05, Ethereum (ETH) went down by 0.7 per cent to $3,228.56, and Bitcoin (BTC) slumped by 0.6 per cent to $95,086.80.
Conversely, Litecoin (LTC) appreciated by 3.2 per cent to $74.48, Solana (SOL) rose by 0.4 per cent to $143.70, Cardano (ADA) jumped by 0.2 per cent to $0.3942, and Binance Coin (BNB) increased by 0.1 per cent to $935.88, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
Oil prices settled higher amid lingering worries about a possible US military strike against Iran, a decision that may still occur over the weekend.
Brent crude settled at $64.13 a barrel after going up by 37 cents or 0.58 per cent and the US West Texas Intermediate (WTI) crude finished at $59.44 a barrel after it gained 25 cents or 0.42 per cent.
The US Navy’s aircraft carrier USS Abraham Lincoln was expected to arrive in the Persian Gulf next week after operating in the South China Sea.
Market analysts noted that it doesn’t seem likely anything will happen soon. However, the weekends have become the perfect time for actions so as not offset the markets.
The market had risen after protests flared up in Iran and US President Donald Trump signalled the potential for military strikes, but lost over 4 per cent on Thursday as the American president said Iran’s crackdown on the protesters was easing, allaying concerns of possible military action that could disrupt oil supplies.
Iran produces approximately 3.2 million barrels per day, accounting for roughly 4 per cent of global crude production, so it was not a coincidence that markets rallied sharply through Tuesday and Wednesday as President Trump canceled meetings with Iranian officials and posted that “help is on its way” to Iranian protesters, raising fears of potential US military strikes that sent prices surging toward multi-month highs.
Weighing against those fears are potential supply increases from Venezuela.
The Trump administration is exploring plans to swap heavy Venezuelan crude for US medium sour barrels that can actually go straight into Strategic Petroleum Reserve (SPR) caverns, since not all all oil belongs in the reserve.
According to Reuters, the Department of Energy is considering moving Venezuelan heavy crude into commercial storage at the Louisiana Offshore Oil Port, while US producers deliver medium sour crude into the SPR in exchange.
Analysts expect higher supply this year, potentially creating a ceiling for the geopolitical risk premium on prices.
Some investors covered short positions ahead of the three-day Martin Luther King holiday weekend in the US.
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