Business

PENCOM Allows Low-Income Earners to Withdraw Entire Retirement Savings

Published

2 months ago

December 3, 2024

By Cynthia Abah

Pensioners with low earnings can now choose to withdraw their entire retirement savings in a lump sum or continue receiving monthly pension payments, pending the approval of the Minimum Pension Guarantee.

This change was announced in a memo from the National Pension Commission (PenCom), signed by A.M. Salem, Head of the Surveillance Department, and made public in Abuja on Monday.

The memo, dated November 27, 2024, aligns with a new provision (4.1(g)) in the revised regulation on the administration of retirement and terminal benefits, following the introduction of the new national minimum wage of N70,000.

Previously, retirees could only withdraw one-third of their total Retirement Savings Accounts (RSAs). However, the new regulation, prompted by the increase in the minimum wage, allows retirees whose RSA balance is insufficient to provide a pension of at least one-third of the N70,000 (i.e., N23,333.33) to withdraw the full balance in a lump sum.

The memo, addressed to pension fund administrators and custodians, referenced the National Minimum Wage Act signed by President Bola Tinubu on July 29, 2024.

It mandates that pension fund administrators apply the N70,000 minimum wage when processing retirement benefits.

Retirees whose monthly or quarterly pensions fall below N23,333.33 may opt to either withdraw their full RSA balance or continue receiving their current pension until the Minimum Pension Guarantee is established.

The memo also detailed the process for retirees requesting full access to their RSA balance. Pension fund administrators are instructed to submit the retiree’s request to PenCom, along with a consent form, signed application letter, and payment schedule.

The circular, which is effective immediately, emphasizes the importance of full compliance with the new guidelines.

Business

FCMB, Proparco Partner to Boost Women-Led Businesses, Agriculture

Published

2 days ago

January 23, 2025

Samson Adeyanju

By Our Correspondent

First City Monument Bank (FCMB), and Proparco have strengthened their partnership with a $35 million senior credit line and two guarantees—ARIZ (€3 million) and EURIZ (€6 million)—signed on January 20, 2025.

The deal, facilitated under the European Union’s EFSD programme, aims to empower small and medium enterprises (SMEs), with a focus on agriculture (90%) and women-led businesses (10%).

This initiative enhances FCMB’s role as a leading SME bank in Nigeria and aligns with global development goals, such as SDG 2 (Zero Hunger) and SDG 8 (Decent Work and Economic Growth). The funding will support high-impact sectors, including agriculture and renewable energy, fostering job creation and economic progress.

Proparco Deputy CEO Djalal Khimdjee emphasized the partnership’s impact: “This collaboration enables the growth of SMEs, advances gender equality, and strengthens food security in Nigeria, building a sustainable and resilient economy.”

Since 2014, Proparco has supported FCMB in advancing Nigeria’s economic development. This latest collaboration reaffirms both institutions’ commitment to inclusive growth and sustainable economic transformation.

Business

Cardoso Vows to End Buying, Selling of Naira Notes

Published

3 days ago

January 22, 2025

Samson Adeyanju

By Our Correspondent

Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, has pledged decisive action to end the commoditization of the Naira, which has become prevalent across the country.

Speaking at the inaugural Stakeholders’ Conference of the Committee of Heads of Banks Operations (CHBO), in Lagos, themed “Commoditization of Naira: The Way Forward,” Cardoso, represented by his Senior Special Adviser, Fatai Kareem, described the practice as a grave threat to Nigeria’s financial system and economic stability.

He noted that the Naira, beyond being a currency, represents the nation’s identity and its stability is essential for economic growth.

However, the growing trend of treating the Naira as a commodity undermines its role as a medium of exchange.

Cardoso highlighted strategies to combat the issue, including public awareness campaigns on responsible currency use, enhancing cash management systems to ensure fair distribution, enforcing regulations against offenders, and promoting digital payment systems to reduce cash dependency.

Chairman of CHBO, Abraham Aziegbe, attributed the commoditization of the Naira to cash shortages in recent years, which forced Nigerians to pay premiums for transactions.

He emphasized the need for robust measures to address cash scarcity and prevent hoarding by financial institutions.

Business

Abuja BDC Denies Money Laundering, Terrorism Financing Allegations

Published

2 weeks ago

January 13, 2025

Samson Adeyanju

By Emmanuel Ogbodo
Abdullahi Abubakar Dauran, outgoing chairman of the Wuse Zone 4 Bureau de Change (BDC), merchants association, has dismissed allegations that the group is involved in money laundering and terrorism financing.
Dauran described the claims as baseless, emphasizing that the association operates within Nigeria’s financial laws.
He also refuted reports suggesting the formation of a parallel BDC group, calling them fabrications.
He urged the public to disregard the allegations and warned The Nation and The Independent newspapers to retract their reports within 48 hours or face legal action.