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Pencom Refunds N849m To Retirees

THE NORTHERNISATION OF PENCOM:A Constitutional Breach? -

The National Pension Commission refunded N848.92m to 3,499 retirees under the Contributory Pension Scheme in the country.

The agency also said it allowed the retirees to leave the system due to low balances in their Retirement Savings Accounts in the fourth quarter of 2020,according to report.

The affected retirees did not have above N550,000 in their RSAs as of the time they retired.

It said: “During the quarter under review, the commission granted approval for enbloc payment of retirement benefits to 3,499 retirees whose RSA balances were N550,000.00 or below and considered insufficient to procure Programmed Withdrawal or Retiree Life Annuity of a reasonable amount for an expected life span.In this regard, a total sum of N848.92m was paid to the 3,499 retirees comprising 200 public (FGN and state) and 3,299 private sector retirees.”

The regulation of the CPS said retirees with less that N550,000 should be given all the money they contributed and as such was deemed to be too small to be managed by the Pension Fund Administrators and life insurers, either as programmed withdrawal or as life annuity.

by Online Editor — April 14, 2021 in Regulators 0

Accountants Need Integrity To Earn Public Respect-NDIC Boss

The Managing Director of the Nigeria Deposit Insurance Corporation, NDIC, Bello Hassan, has emphasized the need for professional auditors who are members of the Institute of Chartered Accountants of Nigeria, ICAN, to uphold the core values of accuracy and integrity.

He gave the charge while receiving an ICAN delegation led by Council member, Mrs Sofura Seghosime, at the NDIC head office in Abuja.

The Director, Communication & Public Affairs Department, NDIC, Mr. Bashir Nuhu, quoted the NDIC boss in a statement as saying thatICAN members needed integrity to earn public respect and confidence.

Hassan explained that both the NDIC and Central Bank of Nigeria (CBN) relied on the works of third parties, including external auditors and reporting accountants in the Risk-Based Supervision (RBS) of deposit taking institutions.

He stressed the need for ICAN members to ensure strict compliance to the high standards expected by the institutions in the discharge of their responsibilities.

by Online Editor — April 6, 2021 in Regulators 0

Why We Celebrate Aigboje Aig-Imoukhuede-NSE

NSE Honours Aig-Imoukhuede With Closing Gong -

Otunba Abimbola Ogunbanjo, the Chairman, Nigerian Exchange Group (NGX Group) says the transformational groundwork by the former president of the NSE, Mr. Aigboje Aig-Imoukhuede, was an inspiration to the leadership of the exchange.

He said the development makes it necessary for the founder of AccessBank to celebrated.

He was hosted to a digital Closing Gong ceremony in celebration of his years of meritorious service and contributions to the growth of the NSE on Tuesday

Otunba Abimbola Ogunbanjo stated, “It is my deep pleasure to celebrate Mr. Aig-Imoukhuede today for his exemplary stewardship as First Vice President, President and ex-officio of the National Council for over seven years. The transformational groundwork he laid made it easier to succeed him as Council President and avidly pursue the vision to build a world-class exchange. Furthermore, I would like to thank him for his wise and valuable counsel to the NSE over the years which were instrumental in the attainment of demutualisation and will continue to guide the entire Group in this new era. I speak on behalf of the Management and Staff of the NGX Group Plc and its subsidiaries in commending him for his exceptional service and wishing him well in his future endeavours.”

The Group Chief Executive Officer, NGX Group Plc, Mr. Oscar N. Onyema, OON, also commented, “I must thank the ever astute Ex-Officio, National Council, NSE, Mr. Aigboje Aig-Imoukhuede, CON for the hands-on experience and business expertise with which he has contributed to the growth of the NSE over the years. During his time as President of the National Council, he provided unique insights that saw to the development of The Exchange despite the harsh economic and policy environments that often characterised his tenure. As Ex-Officio, Mr. Aig-Imoukhuede continued to provide invaluable support to The Exchange. We are honoured to celebrate his achievements and are excited that he did indeed enter the ‘promised land’ with us as he said he would when he retired as President of the National Council in 2016.”

On his part, the Ex-Officio, National Council, NSE, Mr. Aig-Imoukhuede noted thus, “It has been a wonderful journey over the past seven years as First Vice-President, President and Ex-Officio of the National Council of the NSE. Serving in this prestigious role will always be a highlight in my career and I feel greatly privileged to have worked with amazing colleagues at the National Council, the Executive Committee and staff of The Exchange. I must also thank the dealing member community, issuers, the investing public, regulatory bodies and all other stakeholders who contributed in one way or the other to our progress over the years, particularly our aspiration to demutualise. Let me assure you that the Boards and Management of the Nigerian Exchange Group Plc and its subsidiaries remain committed to the course of action and will leave no stone unturned in ensuring that we achieve even more notable feats in this new era.”

by Online Editor — April 1, 2021 in Regulators 0

FIRS Sets New Rule For Income Tax Payment

The Federal Inland Revenue Service (FIRS) has said that any company that wishes to pay income taxes in instalments must apply in writing before the due date of filing.

Muhammad Nami, the FIRS boss,also

said the application must be accompanied by evidence of full payment of tertiary education tax (TEDT) and the first instalment of the companies income tax (CIT) due.

He said:”Section 77 (5) of the 2004 Company Income Tax act amended by the 2019 finance act states that: “Every company shall make payment of tax due on or before the due date of filing, in one lump sum or in instalments”.

“Provided that, where the taxpayer pays in instalments- (a)the taxpayer shall first write, with evidence of payment of the first instalment, and obtain the approval of the Service to pay in such number of instalments as may be approved by the Service; and

“(b)the final instalment must be paid on or before the due date of filing.

“(5B) Any balance of taxes unpaid as at the due date shall attract interest and penalties as provided in the Act or any other relevant law for failure to pay on the due date in accordance.”

The FIRS also explained that the last instalment must be paid on or before the due date for filing tax returns, otherwise penalty and interest will be charged after the due date.

“Taxpayers are enjoined to ensure that they comply with the above mentioned provisions of the Act,” the statement read.

The agency said it would be compelled to carry out tax recovery measures in line with Section 85 (1) of CITA cap C21 LFN 2004 as amended and Section 32 of FIRS Establishment Act (2007), which authorize addition for non-payment and enforcement of payment.

by Online Editor — March 30, 2021 in Regulators 0

SEC Boss Assesses Benefits Of Non-Interest Capital Market

Meet Dr. Lamido Yuguda, the new SEC DG | Nairametrics

Mr. Lamido Yuguda, the Director General Securities and Exchange Commission,has said that non-interest capital market sector has full of potentials to facilitate the objective of deepening the financial system and spurring the growth of the Nigerian economy.

He disclosed this in his opening remark during a 4-day Executive Programme on Non Interest (Islamic) Capital Market (NICM) Products and Basic Accounting Treatment organised by Islamic Financial Services Board (IFSB) based in Malaysia, and the Auditing and Accounting Organization for Islamic Financial Institutions (AAOIFI) based in Bahrain.

He said the recent sovereign issuances of Sukuk by the Nigerian Debt Management Office (DMO), which were all oversubscribed, stresses the need to enhance the SEC’s regulatory capacity adding that the Sovereign Sukuk issuances set the benchmark for other corporates to issue Sukuk for various developmental activities.

He said the SEC’s quest for in-depth knowledge for Non-Interest Capital Market products, operations, and services is further underscored by the recent increase in market activities such as the entrance of more assets managers, investment advisers, Real Estate Investment Trusts, advisory experts e.tc. to provide new asset classes for Nigerian investors.

He said, “It is worthy of note that whilst the non-interest capital market sector in Nigeria is nascent and unique, it is a market full of potential to facilitate the objective of deepening the financial system and spurring the growth of our economy.

“Thus, as you are aware, the SEC in its efforts to deepen the Nigerian Capital Market, developed a 10-year (2015 – 2025) Masterplan with various strategic recommendations, one of which is to drive the Non-Interest Capital Market segment of the market to enable it contribute not less than 25% to the total market capitalization.

“Although, we can confidently report some remarkable achievements recorded in the segment, six years into the implementation of the Masterplan, the Non-interest Capital Market (NICM) segment is still facing challenges in terms of innovation, awareness, acceptance and coverage. These challenges underscore the need to provide focused training, capacity building and vigorous stakeholder engagement and awareness programs”.

He expressed the confidence that the IFSB and OOAIFI have assembled subject matter experts for the training to ensure that the SEC not only gains the requisite knowledge on the Non-Interest Capital Market segment but also optimally leverages the global experiences of the facilitators to guide it in facilitating the development of the sector.

by Online Editor — March 30, 2021 in Regulators 0

SEC Fixes N50m Paid Up Capital For Warehousing, Collateral Mgt companies

The Securities and Exchange Commission, SEC, has fixed N50 million as minimum paid up capital for warehousing and collateral management companies in Nigeria .

The agency explained that the new rules would ensure that the nation has a vibrant commodities trading ecosystem which would in turn translate into foreign exchange earnings for the country.

It added every warehouse that stores commodities to be traded on a registered Exchange shall apply to be registered by the Commission, while the Commission shall maintain a register of all registered warehouses which shall be published on its website

by Online Editor — March 29, 2021 in Regulators 0

We Are Still In Charge Of Stamp Duties Collection-FIRS

We're still in charge of stamp duty collection –FIRS

The Federal Inland Revenue Service (FIRS) says it is still the bonafide agency vested with the collection of stamp duty in the country.

The Finance Act 2020 did not strip FIRS iof stamp duty collection functions on behalf of the Federal Government,its Director, Communications and Liaison,Abdullahi Ismaila Ahmad, claimed.

“The attention of the Federal Inland Revenue Service (FIRS) has been drawn to false publications in some newspapers and electronic/social media platforms misquoting a recent speech by the Honourable Minister for Communications and Digital Economy on the administration of Stamp Duties in the country.

“For the avoidance of confusion arising from such publications, the FIRS hereby informs the general public, especially taxpayers, that the Honourable Minister was misquoted as saying that the administration of Stamp Duty was granted to NIPOST by the Finance Act 2020. The speech attributed to the Honourable Minister was definitely, and unfortunately, quoted out of context.

“For the record, the Honourable Minister merely stated that NIPOST would henceforth produce the Adhesive Stamps required by FIRS to denote Stamp Duties. This position is in line with Section 2 of the Stamp Duties Act (as amended by Section 46 of the Finance Act 2020).

“The FIRS, therefore, urges taxpayers, tax practitioners and the general public to ignore this unfortunate attempt to cause confusion by twisting the Honourable Minister’s speech. The Honourable Minister for Communications and Digital Economy, Dr. Isa Pantami, is a patriot with unarguable passion for the rule of law and stability of the country.

by Online Editor — March 17, 2021 in Regulators 0

NSE Completes Demutualisation From SEC

NSE completes demutualisation process, receives SEC, CAC application

The Nigerian Stock Exchange (NSE) has received final approvals of its demutualisation plan from the Securities and Exchange Commission (SEC) and Corporate Affairs Commission (CAC) .

These approvals pave way for the complete demutualisation process of NSE,according to a statement,which also birth a new non-operating holding company, the Nigerian Exchange Group Plc (‘NGX Group’) .

The Group will have three operating subsidiaries, namely: Nigerian Exchange Limited (NGX Limited), the operating exchange; NGX Regulation Limited (NGX REGCO), the independent regulation company; and NGX Real Estate Limited (NGX RELCO), the real estate company. All the entities have been duly registered at the CAC.

Speaking on the development,Otunba Abimbola Ogunbanjo, NSE Council President, said: “Successful demutualisation was one of my fundamental objectives when I assumed the Presidency of The Exchange. The SEC’s decision today to approve the NSE’s demutualisation plans brings this aspiration to a successful conclusion in a process that included the passage of the Demutualisation Act through the National Assembly.

“We are elated that this milestone has been achieved as we celebrate the 60th anniversary of the commencement of trading at the Exchange and now look forward to the future public listing of its shares on NGX Limited. On behalf of the NSE, I would like to warmly thank all those that have worked assiduously to achieve this watershed event on our journey to make the NSE a multifaceted exchange that extends across various markets and geographical regions.”

The approvals by the SEC and CAC signify that the NSE can now activate its Transition Plan to a new operational structure and holding company. The extensive Transition Plan, taking the Group and its subsidiaries through to full Operational Launch, covers legal and practical changes to enable the functioning of the new corporate structure, with no loss of service and a seamless transition for market participants.

The Transition Plan will also see the inauguration of Boards for each of the new entities, staff reallocation to their respective functions within the operating subsidiaries, operationalisation of business plans and budgets, technology systems transfer, and the requisite arm’s length agreements between the entities. Upon Operational Launch, the Group’s new brands, including a new website, will be unveiled and the Group will be in position to execute on its strategic vision. Stakeholders, including our new valued shareholders will benefit from The Group’s enhanced Corporate Governance framework, access to capital to fund strategic developments and a more globally competitive Exchange.

The approvals also enable the shares of NGX Group Plc, which have been registered with the SEC, to be allotted to the membership pursuant to the Court approved Scheme of Arrangement. Ahead of its listing on NGX Limited, the shares of NGX Group Plc will be available for bilateral trades to be executed in line with extant rules and regulations of the Nigerian capital market. Otunba Ogunbanjo will serve as the inaugural Chairman of NGX Group Plc’s Board of Directors.

Oscar N. Onyema, the new Group CEO of NGX Group Plc, said: “The Nigerian capital markets should play a role commensurate with Nigeria’s status as Africa’s largest economy. At the Nigerian Stock Exchange, we have a vision that the new group will become the premier exchange hub for Nigerian businesses and for the African economy. We are implementing a series of measures towards this goal, demutualisation being a critical milestone. The completion of demutualisation is a truly significant moment, and we welcome the new possibilities that have opened up for us today.”

by Online Editor — March 11, 2021 in Regulators 0

NSE’s Indices Resume Week With 0.17% Growth

The Nigerian equities market resumed trading for week activities yesterday with key indicators improving by 0.17 per cent.

The All-Share Index garnered 64.96 points or 0.17 per cent to close at 39,396.57 compared with 39,331.61 recorded on Friday.

Besides, the market capitalisation rose by N34 billion or 0.17 per cent to close at N20.612 trillion in contrast with N20.578 trillion posted on Friday.

The uptrend was also driven by price appreciation in medium and large capitalised stocks amongst which are: Lafarge Africa, Ardova, FBN Holdings, Access Bank and Champion Breweries. Analysts have expressed optimism that the stock market would witness a rebound in the absence of the Nigerian Treasury Bill auction this week.

They said the absence of an NTB auction this week would calm the surge in yields and provide some temporary respite for equities. A breakdown of the price movement chart indicates that 26 stocks recorded price appreciation in contrast to 15 laggards.

Ardova and Linkage Assurance dominated the gainers’ chart in percentage terms, growing by 10 per cent each to close at N14.85 and 55k per share, respectively.

Champion Breweries followed with a gain of 9.52 per cent to close at N1.84 per share. Oando rose by 9.43 per cent to close at N2.90, while Morison Industries, Cornerstone Insurance and Wema Bank gained 9.09 per cent each to close at 72k, 60k and 60k per share, respectively. Meyer Plc led the losers’ chart in percentage terms, dropping by 10 per cent to close at 45k per share.

by Online Editor — March 9, 2021 in NSE 0

CBN Explains Benefits Of ‘Naira 4 Dollar Scheme’

The Central Bank of Nigeria (CBN) has said that its new “CBN Naira 4 Dollar Scheme”, is aimed at providing Nigerians abroad with cheaper and more convenient ways of sending remittances to the country.

CBN Governor,Mr Godwin Emefiele stated this at the weekend while delivering the keynote address at Fidelity Bank’s Inaugural Diaspora Webinar on the “Implications and Impact of the New FX Policy on Diaspora Investments”.

He explained that the move was also to increase the transparency of remittance inflows and reducing rent-seeking activities,

He expressed optimism that the new policy measure will encourage banks and financial institutions to develop products and investments vehicles geared towards attracting investments from Nigerians living abroad.

The added that the the new policy is expected to enlarge the scope and scale of foreign exchange inflows into the country with a view to stabilising the exchange rate and supporting accretion to external reserves.

He explained that the apex bank introduced the rebate of N5 for every $1 of fund remitted to Nigeria through International Money Transfer Operators (IMTOs) licensed by the Central Bank in order to incentivise the process of remittance.

He explained that the rebate will be provided to the bank accounts of beneficiaries following receipt of remittance inflows.

Emefiele emphasised that the new measure would help to make the process of sending remittance through formal bank channels cheaper and more convenient for Nigerians in the diaspora.

by Online Editor — March 8, 2021 in CBN 0