Economic Confidential, July 2007

NATIONAL NEWS

YAR’ADUA EXPRESSES CONCERN OVER DOMESTIC DEBT

The President, Alhaji Umaru Musa Yar’Adua has expressed concern over the rising domestic debt, as he directed the Central Bank of Nigeria [CBN] to take steps to reverse the trend. He was speaking after a briefing on the economy by the CBN governor, Professor Chukwuma Soludo, at the State House, Abuja.

            The President said “I am concerned about the rising domestic debt and we must come up with a strategy to stem it and reduce its volume. The Central Bank must take appropriate steps to check the tendency of the commercial banks to finance the social sector to the detriment of the real sector”

            He drew attention to the huge domestic debts of some states: “it seems as if some states will spend the next four years managing only debt. It seems some banks find it easier to lend to governments, and wait for monthly allocations to collect their money”, the President said

             President Yar’Adua also expressed serious concern at the state of the educational sector, saying that “education is a crisis sector, such that the products are not trained or knowledgeable or skilled enough to take charge of the commanding heights of the economy. We have a lot of work to do to change this,” he stated.

            Earlier, Professor Soludo had given an extensive brief on the economy, drawing particular attention to the domestic debt, poverty level, the Gross Domestic Product and the challenges facing the country.

            At another briefing by the National Poverty Eradication Programme National Coordinator, Dr. Magnus Kpakol, President Yar’Adua said the poverty eradication programmes “must have intrinsic value so that participants can earn a living through productive activities”.

            He challenged NAPEP to provide projects that will enable beneficiaries of the programme produce and create marketable products. He also spoke about the need for the operators in the private sector, who are beneficiaries of the reforms, to make credit available to the poor at little or no interest rates.

            “The private sector has a great social responsibility; they should play a role towards eradicating poverty by providing capital for the poor to invest and thereby improve their lives and move out of poverty”, the President said.

            Dr. Kpakol, NAPEP National Coordinator, had spoken about the need for sound economic and fiscal policies, rapid infrastructural development and a funding partners with  the private sector and states for the programmes to succeed

PENCOM BEGINS FULL IMPLEMENTATION OF PENSION ACT

The full implementation of Pension Reforms Act has begun as the three years moratorium period given employers in both the public and the private sectors to implement the Act expires. Commissioner in the inspectorate division of the National Pension Commission [PenCom], Dr Musa Ibrahim disclosed in Abuja at the opening of a workshop for pension sales agent.

Dr Ibrahim, disclosing that the three years transitional arrangement for the full implementation of the Pension Reform Act 2004 had lapsed stating that from this year, PenCom would begin to implement the Act fully and invoke all the punitive clauses that are associated with full implementation. 

Explaining the rational for passage of the Act, the Commissioner stated that prior to this, pension funds never existed in some establishments, where they were available at all, and he said the funds were not adequate. He said it is with the aim of ensuring good life for retired employees that informed the decision of the government to enact the law

With full implementation of the Act the stakeholders in the pension industry would be subjected to appropriate sanctions as stipulated by the Act should they contravene any of the laid down rules and regulations. The pension sales agents are as the second most important after the workers. PenCom intended to professionalize the entire pension industry before anybody can be appointed as a pension sales agent. The prospective agent may go through an online examination to be organized by the commission before being certified.

CPC TO ESTABLISH CONSUMER COURT

The Consumer Protection Council is planning to establish consumer court in Nigeria as the South African Consumer Protection Agencies pledges to assist the organisation. Tthe council, the court became imperative following the experience gathered in the study visit embarked upon by the CPC to South Africa courtesy of the British Department for international Development [DFID]

            During the visit to no less than 18 different consumer protection agencies in South Africa led by the Director General Mrs Ify Umenyi, the CPC gatherer that for effective operation a consumer court is needed to protect the consumers like what obtained in South Africa. Apart from the establishment of a consumer court the capacity building efforts of the CPC  is to get a boost through inward and outward bound exchanges, secondments, mentorship, and coaching of the Council’s staff  by South African regulatory bodies.

            During the week-long visit, the CPC delegation which included the Deputy Director Legal, Ms. Riftiat Folami, Assistant Director Legal, Mr. Emmanuel Ataguba, Assistant Director Quality Assurance and Development, Mrs. Mopelola Akeju and Senior Public Relations Officer, Mr. Ondaje Ijagwu, held very useful meetings and discussions that were all attended by heads of the South African agencies visited.

            The South African agencies freely shared with them information and documentation on work processes and experiences, undertook to assist and enter into exchange and capacity building arrangements with the Council, and offered CPC the opportunity to send its staff for trainings and exchange programmes in their respective organisations. Most of the South African Consumer agencies also expressed the intention to equally understudy the CPC whose mandates they variously described as lofty, particularly the measures being put in place by CPC to achieve them.

            To fully maximize opportunities created by the visit, CPC is creating a desk with very skilled staff to handle international liaison and cooperation with other consumer protection agencies and international donors. 

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