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How Retirement Can be Enjoyed, Not Endured: The Imperatives!

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Timi Olubiyi retirement

By Timi Olubiyi, PhD

The current landscape of retirement in Nigeria will change in the next couple of years as the ageing workforce is becoming increasingly visible in businesses, government, politics and in sports. Besides, with or without employment retirement phase will surely come for every individual.

However, persistent high rates of unemployment have been a serious concern in the country over the years, without any visible unemployment benefit, insurance or social policy. The reality is that many in this unemployment category will equally be reaching retirement age and will be transiting in a few years.

So, the impact of unemployment should be seen as long term and life-long, because it affects living standards even in retirement when active age and work-life has been passed with no palliatives or supports.

It is not uncommon for employees, politicians, entrepreneurs and the unemployed to live more than 20 years after the retirement age of 60years but the issue is usually the sustainability of wellbeing, livelihood, lifestyle, status, and social demands. The longer the time spent in retirement, the harder it becomes to be certain about the adequacy of resources to keep the livelihood and lifestyle going.

For those that care to know, individuals will need to have enough funds, assets that generate steady income, family support or investments saved to last even beyond 20 years.

Unfortunately, with a recent survey in Lagos State amongst the cluster of entrepreneurs and older adults majority may not have enough to meet and maintain their standard of living particularly livelihood, in an era of uncertainty, increasing inflation and harsh economic environments and much more at retirement.

This piece presents insights from business owners and businesses around Lagos State the economic capital of the country on retirement planning.

A follow-up survey in the Computer Village Ikeja area of the state was carried out, where respondents (entrepreneurs) indicated that they will only be willing to grow and expand their businesses at the expense of retirement planning, how ironic? Few mentioned that the only motivating factor that can increase their confidence in retirement is if their businesses succeed.

One of the key findings in the survey was that only a fraction of businesses are aware of the importance of pension and retirement plans. It was a stiff struggle identifying businesses with adequate arrangements of pension for staff, owner-manager or the business operator.

Even though a retirement plan through pension arrangements can help ensure that business owners and their staff have enough funds to live on in their later years, this all-important scheme is found missing in the majority of small businesses in Lagos State.

Recall small businesses are over 90% of existing businesses in the country and provide significantly for the majority of homes and families in terms of employment, sustainability and livelihood. Many entrepreneurs are so busy growing their businesses that they put off planning for retirement, this growing trend is not only worrisome but disturbing. Surprisingly as important as a retirement plan is, ageing business owners and operators rarely consider it imperative.

The survey further indicated that the majority of the businesses especially the self-employed do not have retirement savings plans, and 40% of business owners in the survey are not confident that they will be able to retire before the age of 65.

Nevertheless, the good news is that those small business owners have more options available to them than traditional 9 am to 5 pm office employees, yet this advantage is not explored. Because it presents an option of flexibility in the date of retirement.

Retirement can either be considered early or later, in some cases business owners might choose not to fully retire. The flexibility gives entrepreneurs the option to determine exactly when to stop working, yet the majority continue to operate without ceasing.

Indeed, according to the survey, 70% of the self-employed and entrepreneurs in computer village do not save regularly for retirement. The reason adjudge to this phenomenon is that they do not receive a steady salary pack, so many of these hardworking individuals forgo retirement plans. The survey further highlights that some of the small business owners have the mind of selling their businesses to fund their retirement and relocate to the village when the time arises.

However, the risk of this option is that entrepreneurs and small business owners can overestimate the value of their businesses and eventually run at a loss. Counting entirely on the sale of the business to fully fund a long retirement is highly risky due to unforeseen circumstances.

The survey also found that many business owners would appreciate guidance when it comes to retirement because they lack knowledge of it. It is important to note that before death, especially under normal conditions in life, there is a phase called old age; a period where entrepreneurs have almost exhausted intellectual values and strength. Consequently, there is a need to prepare for such a phase of life with adequate retirement planning and possibly business succession.

Retiring is a real-life changing phase with far-reaching implications, dreadful stories most entrepreneurs would not want to hear or discuss this reality but unfortunately, there is nothing one can do about it; it is bound to come one day. Business owners cited cost and lack of resources to administer the plan as the leading reasons why they do not have a retirement plan in place.

Please note if you are a small business owner reading this, you are likely busy running your business and have not had the time to research the best retirement option. While retirement may not be on your mind currently as an entrepreneur, the sooner you start planning for this all-important aspect of your business the better. Here are simple steps entrepreneurs and small business owners can take right now to prepare for retirement in my opinion.

A good start is by implementing the 10% rule which is a lot easier than you can comprehend. Achievable by simply setting up an auto-transfer system with your bank, that is automatically transferring 10% of all your earnings out of your business account into your savings account every month. Then you can place the accumulated fund into a low-risk investment at intervals and allow compounding interest to grow your fund.

This applies whether you are an entrepreneur or not. It is a simple trick to grow your wealth and support a retirement plan. Real estate investments can also help give succour in retirement, but professional guidance needs to be sought.

Another approach is to develop an exit strategy in your business, that is, have in mind right now what will happen to it when you retire, when you intend to eventually quit and set up strategies to guarantee retirement income. One other important factor to consider is what will happen to your business when you retire. Will you pass it on to family or sell the company to another business or owner? Will you have someone currently working for you take over?

A simple retirement model can give you a simple leeway, but you have to plan for it and stick to it. Because retirement age varies so drastically, small business owners need to evaluate their lifestyle, savings, and the company’s overall performance to determine an ideal retirement option.

In conclusion, a bit of research, adequate planning, and seeking advice can help with achievable retirement goals. A professional can also help streamline your business and help with the necessary details required to have a comfortable retirement. Good luck!

How may you obtain advice or further information on the article? 

Dr Timi Olubiyi, an Entrepreneurship & Business Management expert with a PhD in Business Administration from Babcock University Nigeria. A prolific investment coach, seasoned scholar, Chartered Member of the Chartered Institute for Securities & Investment (CISI), and Securities & Exchange Commission (SEC) registered capital market operator. He can be reached on the Twitter handle @drtimiolubiyi and via email: drtimiolubiyi@gmail.com, for any questions, reactions, and comments.

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Still on Nigeria’s Electricity Crisis

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Nigeria's electricity crisis

By Jerome-Mario Chijioke Utomi

Similar to history, which according to historians, is an unending dialogue between the present and the past through a continuous process of interaction between the historian and his facts to assist the anxious enquirer improving the present and future based on a clearer understanding of the mistakes and achievements of the past, the conversion on electricity power supply challenge in the country has like history, become neither unending nor abating.

Essentially, the first half of this recurring circle was captured recently in my piece titled FG’s Assurance on Generation of 25,000MW Electricity, as it explains why Nigerians are no longer comfortable with assurances from the federal government, the present piece which qualifies as the beginning of something new was elicited as a response to a declaration by Garba Shehu, the presidential spokesperson.

Shehu, who spoke in an interview on a Channels Television programme, Sunrise Daily, among other things stated; that President Muhammadu Buhari has greatly improved electricity generation in the country, he concluded.

Let’s face the fact; he spoke convincingly with actual authority that flows from the position that he occupies. However, the only difference here is that, unlike history, his run on fact, particularly his fervent belief that the outlook of the nation’s electricity remains good, in the face of the current epileptic power supply and unjustifiable high tariff regime in the country, has not in any way advanced our conversation on or assisted the nation’s quest to find a quick solution to its electricity/energy crisis.

Let’s face the fact; it is true that the 2005 Power Reform Act (EPSR, ACT of 2005), which provided for the privatization of the power sector did not go far before President Olusegun Obasanjo administration left office in 2007. Yes, it is also true in parts that the present frustration in the sector was further fed by the reality that the current federal government as noted by Garba Shehu during the interview, inherited reckless privatization of the power sector done by the Goodluck Jonathan administration (the roadmap for power sector reform of 2010), Despite the validity of these claims, yet, Shehu’s analytics for reasons did not go without opposition.

First, enough evidence supports the fact that no administration in the country, not even the present Muhammadu Buhari led federal government can boast of clean hands when it comes to Nigeria’s electricity crisis.

Without going into analysis to establish how culpable each of these administrations appears in this case, one point, in my view, that mustn’t be overlooked when discussing the power/electricity crisis in Nigeria is that the challenge has nothing to do with privatization. It is neither fuelled by the desire to fashion an authentic roadmap for restoring the health and vitality of the sector nor is it the function of the current effort to bring about a new tariff regime.

Rather, it’s simply and squarely a conceptual problem of what successive federal government has been doing which has never been in the best interest of the people, the nation and the sector.

Very fundamental of the challenge is the operation of the obsolete grid system, an arrangement where the power generated in the country is pooled/assembled or channelled to a control/switch centre before it is finally distributed to consumers across the nation.

Aside from qualifying as a clumsy arrangement and operated in an environment laced with outmoded transmission lines and facilities that cannot hold supplies over time, the practice itself, going by what industry watchers are saying, is not only out-fashioned, old-schooled but visibly runs contrary to the global vision/model which presently favours decentralization of energy generation and distribution.

In my view, energy/power centralization has never assisted the socio-economic development of any nation desirous of making headway industrially.

There exist yet another frustration, this time around fuelled by painful consciousness that instead of acting as energy sector regulator, successive administrations’ for yet to be identified reasons choose to function in the nation’s power sector as both ‘ captain and coach’,- owning shares in Gencos, Discos and TCN.

This state of affairs occurred in spite of part breaking studies that suggest that the private sector is likely to better understand the location and nature of market failures/bottlenecks/barriers that inhabit the energy sector.

It was also argued elsewhere that the government capacity to design and execute an appropriate resolution of identified market failure/bottlenecks is the sector is often always laced with controversy.

From this  ‘unrelenting’  failures/failings on the part of policymakers to define the business of power generation and distribution in the country and lack of clear strategy for penetrating it profitably, or allow conventional market forces to determine electricity tariff regimes in ways that will lead to the realization of economic rights of the investors while expanding fundamental freedoms and choices of the individual consumers; and with government, unwillingness to follow swiftly, the ‘changing needs of time’, which of course are the sufficient ingredients of foresighted decision making and condition that every leader desirous of success must constantly fulfil, it obvious that the nation’s handlers have finally left the survival of the sector to chance.

As we know, anyone that fails to search for his potential leaves his survival to chance

Again, it is weak regulations and untidy oversight such as these, that largely promotes a situation where according to a commentator, an electricity consumer buys pole, cables, meter and contributes money to buy or replace the community transformer; and, as soon as that is done, they automatically become the Disco property and the electricity distribution companies will, without taking the meter reading, send outrageous estimated bills he/she never consumed.

That is not the only apprehension. There exists also some unforgivable abuse of trust within the sector.

The first that comes to mind is the recent report that the Senate Committee on Public Accounts has begun the investigation of N14.7 billion proceeds of privatization of the defunct Power Holding Company of Nigeria (PHCN) allegedly hidden in commercial banks by the Bureau of Public Enterprise (BPE).

The committee is acting on an audit query in the ‘Auditor-General for the Federation’s Annual Report on Non-Compliance/Internal Control Weaknesses Issues in Ministries, Departments and Agencies of the Federal Government of Nigeria for the Year Ended 31st December 2019.’

Before the dust raised by the above worrying/worrisome development could settle, another was up. This time around has to do with a new awareness of how TCN, DISCO’s Inefficiencies Caused Electricity Generating Companies to about N120.25 billion to stranded power which averaged 2,448.50 megawatts every month in 2021.

According to industry data cited by Business Standards, an average of N13 billion was lost every month by generating companies. This is the total monetary value of the volume of electricity generated by generating companies but which unfortunately could not get to consumers either due to infrastructural problems or because they were rejected by distribution companies for fear of not being able to recover the money from consumers.

What the above development tells us is that it is a difficult venture to implement meaningful changes when institutions are the cause of the problems in the first place.

It also suggests that engineering prosperity without confronting the root cause of the problem and the politics that keeps them in place is unlikely to bear fruit as the institutional structure that creates market failure will also prevent the implementation of interventions.

To catalyse the process of serving the sector, we must recognize that what we need today, perhaps, is not a new theory, concept or framework, but people who can think strategically with a balanced perspective.

Utomi Jerome-Mario is the Programme Coordinator (Media and Public Policy), Social and Economic Justice Advocacy (SEJA), a Lagos-based Non-Governmental Organization (NGO). He could be reached via Jeromeutomi@yahoo.com/08032725374.

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Advancement, Money, Transcendence and Vanity

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Money truck going over a cliff

By Nneka Okumazie

The progress that a country makes does not depend on what some individuals can afford. That an individual can have something or afford it does not mean that the happiness the individual now has would become useful to development.

There are countries in the world with people whose priority is to be able to afford high-end things. The acceptance of their society is about that – not about making it, or how it was made, or how to make extraordinary things that people would want, in future.

Money is the global standard of success, but the availability of money is not the eradication of problems. Most developing countries in the world with complex problems have internal and external revenues, with people of means, but low to zero probability of solving their own problems.

Money is its own pet, necessary for continuous tend. Those who have it live for it and are its subject, those who don’t, want and serve for it. There is normalcy to continue to make money, but many people, decades and decades ago, who did, and lived for it, rarely transcended its shackles.

They are gone. Their time and pleasures are gone. What it was to be what they were is forgotten. Their conflicts, bias, strife and competition are all past. Many left without leaving lessons. There is no difference between some of those who had now forgotten, and others who didn’t, also forgotten.

In a world where sudden death is possible, money should not be this important. Knowing that void can become of anyone should make the total war for advantage to money or resources less important. Time passage also, is a lesson, as some fade off, after being in the centre stage for years.

Money should have been a tool mostly adapted to progress, not as the meaning of life. The loss that the place of money is, to life, is unquantifiable. There are people who have things and that is all for them. Pride, arrogance, discrimination and irritation are tosses of money.

The preeminence of capitalism paved way for intense use of technology, contributing in part to unprecedented loneliness, dissatisfaction and gross sadness. Money is the centre of most technology contents, to make or to show, drawing those trying to make or looking to show.

When it was said that all is vanity, there is a point where the money for the sake of it, is included. Progress, real useful advancement carries more meaning than money for things, status or class.

Lack of money is what can make people brand others danger or stranger. The thing about network or connection is not about integrity or purpose, but mostly about who has money or who is close to it.

There are lots of talks about the end of the world, but the world has long driven over the cliff with money as the one true throne everyone bows before.  Those who should have understood more about the risks of money supremacy are blinded by it. Those who understand nothing about its emptiness are controlled by it. The position of money in the world is greater than all people, nation, government, work, school, knowledge, all. Money may be the main, unbreakable hex.

[Psalm 144:4, Man is like to vanity: his days are as a shadow that passeth away.]

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Germ Traps in the Kitchen

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SweepSouth germ traps in the Kitchen

From fridges to coffee makers, these are 5 germ traps in your kitchen.

We all want our homes to feel sparkly clean, but there are some areas that may not be making it onto your household chores list.

Aisha Pandor, whose on-demand home services company SweepSouth helps people to keep their homes spotless, lists the places we often forget to clean.

In a study by global health organisation NSF International looking at where the highest concentration of germs can be found in the average household, three of the top five germ hot spots were in the kitchen – which leads to the first area that needs a good clean.

The back of your fridge

Topping the list of places in the home that rarely gets cleaned is the back of the fridge – that’s the exterior back, not inside! The coils located there work to cool the air down, but they can’t do so efficiently if they’re coated with grime. To reach the coils, Aisha advises you to unplug your fridge, pull it away from the wall and gently brush off any dirt and dust on the coils.

Do this annually and it will help you save on power costs. A fridge is one of the top energy-using appliances in the home, and simply cleaning its exterior coils can reduce the amount of energy it uses by up to 30%. Remember to leave space between your fridge and the wall once you’ve pushed it back into position, to allow air to freely circulate.

Backsplashes

Tiled backsplashes are often overlooked during cleaning, but they’re notorious for attracting grease and grime. That grease acts as a magnet for dust and dirt, says Aisha — not exactly the type of environment where you want to be preparing food.

To clean backsplashes using natural products, mix two cups of distilled white vinegar with a cup of water and 15 drops of eucalyptus oil. Dab a cloth into the mixture and rub over the tiles to clean. You can use this cleaning mixture on any shiny non-porous surface, like sinks, too.

Ovens and hobs

At the very heart of the kitchen’s food preparation, ovens are prime real estate for germs. Clean the interior regularly, and line the bottom with foil to catch any drips and spills. When the foil becomes grimy, simply peel off and throw it away.

It’s not just the inside that needs cleaning, though — stove knobs are in the top 10 for common places where germs hide. To clean, remove the knobs and wash in hot soapy water. Rinse well, allow to dry, and reinstall. On a gas hob, dismantle the gas rings and clean separately in hot soapy water.

Can opener

Chances are that you seldom take a close look at your can opener, yet it’s surprising how grimy this kitchen aid can become. Can openers can harbour bacteria like salmonella and e.Coli, and should be washed after every use to clean the gears and cutting wheel.

Dry thoroughly to prevent rust. If there’s a build-up of dirty residue in your can opener’s wheel, Aisha has a nifty trick to clean it: simply clamp the wheels onto a piece of dry paper towel and turn the handle to get rid of any gunk.

Coffee maker cleanse

Coffee machines’ water tanks or reservoirs usually have lids to stop dust, dirt and insects from getting in. However, a study by a health organisation, NSF International, of where the highest concentration of germs can be found in the average household, showed that coffee machine water tanks are the fifth most germ-ridden place in the house.

A tank’s moist, dark, location is a prime place for germs and bacteria to grow. In fact, the study discovered that 50% of households had yeast and mould in their coffee maker water tanks, and one in 10 had traces of coliform, a bacteria found in animal and human faeces that can cause gastrointestinal upset and flu-like symptoms. If you regularly make coffee, Aisha advises that you rinse the water reservoir regularly — if not daily, at least every week.

While experts do say we need some exposure to germs to help build strong immune systems, we need to limit being around germs that cause serious illnesses, says Aisha. By cleaning the above areas regularly, you’ll help keep your kitchen more hygienic and safer.

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