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  #2261 (permalink)  
Old 19th December 2012, 01:54 PM
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Default Re: First Bank Plc

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Originally Posted by Oracle View Post
When one retires can his pension be reviewed upwards?
Yes, it can.

There is defined benefits pension and defined contribution pension. In the defined benefit system, the pension can be reviewed upwards.

The defined contribution is the new scheme that is currently running and under the jurisdiction of Pencom; the pension cannot be reviewed upwards.
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  #2262 (permalink)  
Old 19th December 2012, 02:18 PM
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Default Re: First Bank Plc

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Originally Posted by knightofdelta View Post
Yes, it can.

There is defined benefits pension and defined contribution pension. In the defined benefit system, the pension can be reviewed upwards.

The defined contribution is the new scheme that is currently running and under the jurisdiction of Pencom; the pension cannot be reviewed upwards.
Actually, under the defined contribution scheme you don't know what you will get! So issue of increase or decrease does not arise.
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  #2263 (permalink)  
Old 19th December 2012, 02:23 PM
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Default Re: First Bank Plc

Quote:
Originally Posted by wanaj0 View Post
Actually, under the defined contribution scheme you don't know what you will get! So issue of increase or decrease does not arise.
So basically on my date of retirement, they will just hand me a cheque for any amount they like abi? and i dont have any way to calculate along to reconcile on dat day; wicked!!

No wonder pension fund magrs are the lastest nouveau riche in town!
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  #2264 (permalink)  
Old 19th December 2012, 03:57 PM
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Default Re: First Bank Plc

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Originally Posted by overload View Post
So basically on my date of retirement, they will just hand me a cheque for any amount they like abi? and i dont have any way to calculate along to reconcile on dat day; wicked!!

No wonder pension fund magrs are the lastest nouveau riche in town!
In principle YES. Whatever your money is worth at retirement is what you get even if it is zero! That's why market fall affect pensioners more. They can't wait for market to recover.

Defined benefit scheme is good BUT most organisations don't fund it well. Hence when it is time to pay, they will be speaking grammar.
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  #2265 (permalink)  
Old 19th December 2012, 04:07 PM
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Default Re: First Bank Plc

Quote:
Originally Posted by wanaj0 View Post
In principle YES. Whatever your money is worth at retirement is what you get even if it is zero! That's why market fall affect pensioners more. They can't wait for market to recover.

Defined benefit scheme is good BUT most organisations don't fund it well. Hence when it is time to pay, they will be speaking grammar.
My Oga, you never answer my question wey I ask some days ago. Na beg I dey beg you.

Is USAN sale part of the capital flight?
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  #2266 (permalink)  
Old 19th December 2012, 09:22 PM
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Default Re: First Bank Plc

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Originally Posted by Oracle View Post
My Oga, you never answer my question wey I ask some days ago. Na beg I dey beg you.

Is USAN sale part of the capital flight?
Don't think so.

Usan is having serious corrosion issues. Total basically sold a lemon to the Chinese company. Total is raising cash for another investment. Egina is waiting for PIB before FID. Sale of USAN is not capita flight.
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  #2267 (permalink)  
Old 19th December 2012, 10:07 PM
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Default Re: First Bank Plc

Quote:
Originally Posted by overload View Post
So basically on my date of retirement, they will just hand me a cheque for any amount they like abi? and i dont have any way to calculate along to reconcile on dat day; wicked!!

No wonder pension fund magrs are the lastest nouveau riche in town!
Don't you have to buy an annuity on retirement? Some insurance companies may sell annuities. If you can buy one, it should be possible to find one that is index linked (i.e. rises with inflation).
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  #2268 (permalink)  
Old 20th December 2012, 06:55 AM
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Default Re: First Bank Plc

Quote:
Originally Posted by wanaj0 View Post
Don't think so.

Usan is having serious corrosion issues. Total basically sold a lemon to the Chinese company. Total is raising cash for another investment. Egina is waiting for PIB before FID. Sale of USAN is not capita flight.
Thanks my Oga.

I've heard of the corrosion issues before. It even delayed the startup of the FPSO when it arrived from S/Korea. I'm wondering why there would be such issues when many FPSOs sitting on the atlantic. It definitely will be a design/material selection problem.
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  #2269 (permalink)  
Old 20th December 2012, 09:27 AM
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Default Re: First Bank Plc

Quote:
Originally Posted by eniyanman View Post
Don't you have to buy an annuity on retirement? Some insurance companies may sell annuities. If you can buy one, it should be possible to find one that is index linked (i.e. rises with inflation).
Our insurance companies are not that "smart" yet.
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  #2270 (permalink)  
Old 20th December 2012, 09:29 AM
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Default Re: First Bank Plc

Quote:
Originally Posted by overload View Post
So basically on my date of retirement, they will just hand me a cheque for any amount they like abi? and i dont have any way to calculate along to reconcile on dat day; wicked!!

No wonder pension fund magrs are the lastest nouveau riche in town!
You need to understand the way the new pension scheme works in Nigeria before drawing conclusions. The old pension scheme was riddled with corruption but if you have been following Pencom actions, you will discover that these guys are not taking any chances.
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  #2271 (permalink)  
Old 20th December 2012, 09:58 AM
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Default Re: First Bank Plc

Quote:
Originally Posted by eniyanman View Post
Don't you have to buy an annuity on retirement? Some insurance companies may sell annuities. If you can buy one, it should be possible to find one that is index linked (i.e. rises with inflation).
Bros, am not sure we have such pdts in Naija insurance coys ( I stand to be corrected though)

Pls is anybody knows of any insurance coy with such ..pls lets helep me.
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  #2272 (permalink)  
Old 20th December 2012, 10:16 AM
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Default Re: First Bank Plc

Quote:
Originally Posted by knightofdelta View Post
You need to understand the way the new pension scheme works in Nigeria before drawing conclusions. The old pension scheme was riddled with corruption but if you have been following Pencom actions, you will discover that these guys are not taking any chances.
bros abeg how do you guys calculate it in this new pension scheme?
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  #2273 (permalink)  
Old 20th December 2012, 10:53 AM
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Default Re: First Bank Plc

Quote:
Originally Posted by overload View Post
bros abeg how do you guys calculate it in this new pension scheme?
The PFAs don't have direct access to the pension funds so there is no way they can "loot" them. Before any investment is made or terminated, instructions are sent to the Pension Fund Custodians (PFCs) to move funds or assets from one place to the other.

The Pencom goes through all transactions and asset class, issuer, etc exposure on a monthly basis, with a fine tooth comb, and flag any lapses. There are definitely loopholes that can be used to skim some funds but the era of finding two billion naira in the house of a pension fund managers is over.
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  #2274 (permalink)  
Old 20th December 2012, 10:57 AM
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Default Re: First Bank Plc

Quote:
Originally Posted by knightofdelta View Post
The PFAs don't have direct access to the pension funds so there is no way they can "loot" them. Before any investment is made or terminated, instructions are sent to the Pension Fund Custodians (PFCs) to move funds or assets from one place to the other.

The Pencom goes through all transactions and asset class, issuer, etc exposure on a monthly basis, with a fine tooth comb, and flag any lapses. There are definitely loopholes that can be used to skim some funds but the era of finding two billion naira in the house of a pension fund managers is over.
but how do we mitigate against wrong bettings? does anyone check what they are betting on with our funds?
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  #2275 (permalink)  
Old 20th December 2012, 12:37 PM
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Default Re: First Bank Plc

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Originally Posted by overload View Post
but how do we mitigate against wrong bettings? does anyone check what they are betting on with our funds?
Yes. There is a strict investment guideline that PFAs have to adhere to. This guideline ensure that the funds are diversified across various asset classes. Maximum of 25% can be directly invested in equities and maximum of 80% can be invested in FGN bonds (which is the safest asset in Nigeria). There are also also limits to other asset classes such as private equity, exchange traded funds, Eurobonds, GDR, GDN, etc. This diversification reduce the propensity of unnecessarily taking huge bets with the funds.

If a PFA returns more than or less than 20% above or below the median PFA return on any month, Pencom will take a walk to the PFA to see what they are doing to generate such gains or losses. It is all about the safety of pension assets.

You can check out Pencom.gov.ng to download the latest investment guidelines.
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  #2276 (permalink)  
Old 23rd December 2012, 05:56 AM
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Default Re: First Bank Plc

IGP, Mohammed Abubakar, Sues First Bank Over Forgery
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  #2277 (permalink)  
Old 23rd December 2012, 07:17 AM
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Default Re: First Bank Plc

Bisi Onasanya: Real Sector Needs to Be Organised to Attract Banks’ Support, Articles | THISDAY LIVE
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  #2278 (permalink)  
Old 23rd December 2012, 12:53 PM
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Default Re: First Bank Plc

"........To the extent that we are still not able to bring inflation rate down, the interest rate regime of the CBN today is still supportive and it is still in order. As a matter of fact, textbook economics would tell you that your interest rate should be above your inflation rate. Today, if the CBN decides to take a factual decision based on available statistics, what they would do is not to bring down interest rate, but to take it up. However, I believe that what should happen is for us to wait and watch the sustainability of the inflation numbers as they come forward. I believe that the numbers would slightly go up higher than it is today, maybe in the first quarter and let’s see what happens in the second quarter. If that pattern emerges and becomes a trend that we can say has come to stay, it would be difficult and dangerous for anybody to propagate that interest rates should come down. We need to understand also that Nigeria traditionally does not have a low interest regime simply because we are not able to control our inflation.

There are efforts today to bring down interest rate, but the efforts should be concentrated first on bringing down inflation before we start talking about bringing down interest rate. I understand the fact that it is desirable for the economy to borrow at low interest rate, but we need to understand that in the context of the Nigerian economy, what is more important today is to make sure that our exchange rate is stable and low enough to sustain the economy. The reason is very simple. We have a very high import component of our cost. So, irrespective of what your interest rate is today, if the exchange rate continues to go up, the impact on inflation will be much higher than we are seeing today. I therefore support the present efforts of the central bank in first of all tackling the exchange rate problem to make sure that we have a stable and sustainable exchange rate. When you do that, the impact is felt on other sectors of the economy including bringing down inflation rate. When inflation rate becomes lower than it is today, it therefore forces the central bank to bring down interest rate. You shouldn’t take interest rate alone in isolation and say you want to bring it down, that would be very academic and can distort the entire system..."
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  #2279 (permalink)  
Old 23rd December 2012, 03:08 PM
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Default Re: First Bank Plc

Quote:
Originally Posted by Waves View Post
"........To the extent that we are still not able to bring inflation rate down, the interest rate regime of the CBN today is still supportive and it is still in order. As a matter of fact, textbook economics would tell you that your interest rate should be above your inflation rate. Today, if the CBN decides to take a factual decision based on available statistics, what they would do is not to bring down interest rate, but to take it up. However, I believe that what should happen is for us to wait and watch the sustainability of the inflation numbers as they come forward. I believe that the numbers would slightly go up higher than it is today, maybe in the first quarter and let’s see what happens in the second quarter. If that pattern emerges and becomes a trend that we can say has come to stay, it would be difficult and dangerous for anybody to propagate that interest rates should come down. We need to understand also that Nigeria traditionally does not have a low interest regime simply because we are not able to control our inflation.

There are efforts today to bring down interest rate, but the efforts should be concentrated first on bringing down inflation before we start talking about bringing down interest rate. I understand the fact that it is desirable for the economy to borrow at low interest rate, but we need to understand that in the context of the Nigerian economy, what is more important today is to make sure that our exchange rate is stable and low enough to sustain the economy. The reason is very simple. We have a very high import component of our cost. So, irrespective of what your interest rate is today, if the exchange rate continues to go up, the impact on inflation will be much higher than we are seeing today. I therefore support the present efforts of the central bank in first of all tackling the exchange rate problem to make sure that we have a stable and sustainable exchange rate. When you do that, the impact is felt on other sectors of the economy including bringing down inflation rate. When inflation rate becomes lower than it is today, it therefore forces the central bank to bring down interest rate. You shouldn’t take interest rate alone in isolation and say you want to bring it down, that would be very academic and can distort the entire system..."
Oga mii I disagree with U. My own argument is since it is more than 1 year since central bank has pegged the interest rate at 12% you will agree with me that the impart has not been felt. If u are are going on gear 3 and the car is having problem moving the wise thing to do is change gear. All centra bank is doing is Academic exercise which goes by all things being equal. In this case all thing are not equall. The real world is different from academic world. If the interest rate is low this will reduce interest on loan hence more companies will access loan for expansion and increase productivity which will invariable push down cost. There will be increase in loan to farmers who will produce more and cost will go down. With lower cost this will compete effectively with imported product and hence less import and increase in Excess crude account, which will lead to appreciation. Of the Naira. At this point it will be necessary to point out that NOI is doing a lot at controlling fiscal policy of the Government and with anticipated improvement in infrastructure and the passage of PIB more participant in the petroleum sector leading to less import of petroleum product which will help to further stabilize and if possible push down inflation more.
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  #2280 (permalink)  
Old 23rd December 2012, 03:20 PM
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Default Re: First Bank Plc

Quote:
Originally Posted by dr dowell View Post
Oga mii I disagree with U. My own argument is since it is more than 1 year since central bank has pegged the interest rate at 12% you will agree with me that the impart has not been felt. If u are are going on gear 3 and the car is having problem moving the wise thing to do is change gear. All centra bank is doing is Academic exercise which goes by all things being equal. In this case all thing are not equall. The real world is different from academic world. If the interest rate is low this will reduce interest on loan hence more companies will access loan for expansion and increase productivity which will invariable push down cost. There will be increase in loan to farmers who will produce more and cost will go down. With lower cost this will compete effectively with imported product and hence less import and increase in Excess crude account, which will lead to appreciation. Of the Naira. At this point it will be necessary to point out that NOI is doing a lot at controlling fiscal policy of the Government and with anticipated improvement in infrastructure and the passage of PIB more participant in the petroleum sector leading to less import of petroleum product which will help to further stabilize and if possible push down inflation more.
i think your comment is more academic. You didn't consider the immediate effect of your policy on exchange rate.
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