₦airaland Forum

these people go kill the country. they wan go borrow 758 BILLION to pay pensioners. why we never her of this problem before ??

What's the meaning of the topic or headline pls. Am lost!

Enlighten me pls.

vanitybutiwanti:
And so what? Are you aware that the government can easily print cash(ways and means) to offset Domestic debts(Treasury bills and Bonds issued in Naira) if they have a problem paying back? Moreover government has never and would never default on Domestic debts

What does the topic or headline mean pls? Am lost.
Can you enlighten me?

ValarDoharis:
You're truly ignorant. Why is inflation 37%?

Keep printing until inflation grts to 100%

The money deducted will be paid back?

Ishilove:
It was borrowed.

What do you mean by remitted in this case?

tunjijones:
I think the pension wasn't remitted as at the time they were in service.

But these days the money is no more domiciled with the govt but with pension companies.

So they want to now deduct money from their pensions?

I don't really understand this news.
Can you enlighten me pls?

Housing:
The approval, granted during Tuesday’s FEC meeting at the State House, Abuja, allows the Debt Management Office (DMO) to raise the funds needed to settle pension arrears under the Defined Benefit Scheme—the system that preceded the current contributory pension scheme introduced in 2004 and amended in 2014.


The backlog is for pensioners that existed before the contributory pensions scheme and those that were not part of the contributory pensions scheme. So no deductions were made from their salaries while in service

Fg wants to borrow that money from the public to pay pension. Pension could have been paid from all the revenue or subsidy removal monies but no, they've stolen those.

Love800:
What does the topic or headline mean pls? Am lost.
Can you enlighten me?

What is gratuities pls? Is it different from pension?

Kewekubosineh:
But government could do better. It takes more than a year waiting before a retiree could collect Half of his pensions.

Government could settle gratuities of retirees within three months of retirement instead of more than a year. It's retrogressive and many died before they were settled.

This delays is the reason there is massive corruption in civil service. People steal against the rainy day, delays in settlement of gratuities.

Love800:
The money deducted will be paid back?

A quarter of the money is going to be paid to the pensioners. Usually in Nigeria it is half of the pension that is paid while half remains with the pension managers, but in this particular case it is only a quarter that will get to the pensioners. Take for instance, if GL14 is to receive 7 million, they will now receive 1.750 million, which is very very negligible.

frog12:
these people go kill the country. they wan go borrow 758 BILLION to pay pensioners. why we never her of this problem before ??

You didn't hear because civil servants don't have any active union to fight for their rights. As of now, pensioners that retired March 2024 are yet to be paid their gratuities.

Love800:
What do you mean by remitted in this case?

Let me use an example to illustrate it maybe you wld understand better.

Normally pension is 18 percent of your salary out of which the employee will pay 8 percent and the employer will pay 10 percent. So if someone is earning 100k the pension is 18k. 8k will be deducted from the employee salary while the employer will add 10k to make it 18k.

So in this case, govt is the employer, so as at the time the staff was in active service, the govt wasn't remitting their own 10 percent. Most times they pay it in bulk like the just did now.

I don't know if you understand better now.

Ishilove:
You didn't hear because civil servants don't have any active union to fight for their rights. As of now, pensioners that retired March 2024 are yet to be paid their gratuities.

You people shd sharap... You don't know something and you wld be acting like you know it all.

The govt have always been releasing bond to pay pensioners. It didn't just start today.

Love800:
What is gratuities pls? Is it different from pension?

Gratuities is payment made to retiree after putting stipulated years of service.

Pension is the monthly payment made to you for life based on your grade level before retiring from service. it's based on percentage of your monthly salary before retirement.

tunjijones:
You people shd sharap... You don't know something and you wld be acting like you know it all.

The govt have always been releasing bond to pay pensioners. It didn't just start today.

No, you shut that hole you call a mouth. You're the one who doesn't know anything and you have refused to know

Ishilove:
No, you shut that hole you call a mouth. You're the one who doesn't know anything and you have refused to know

Okay tell me what you know ma.

FYI, I am a pension expert and I have been doing this for more than 12 years.

Almost every year, the govt release bond for pensioners to be paid. That is when you see all pensioners are very happy and they wld go for verification exercise.

Some people don't know, they know that they don't know and they are willing to know.

But you, you don't know, you foolishly think you know... That is the highest height of ignorance. Everything you want to use it to blame Tinubu.

Since when Obasanjo did pension reform act in 2004, govt have been using bond to pay pensioners lump sum.

tunjijones:
Okay tell me what you know ma.

FYI, I am a pension expert and I have been doing this for more than 12 years.

Almost every year, the govt release bond for pensioners to be paid. That is when you see all pensioners are very happy and they wld go for verification exercise.

Some people don't know, they know that they don't know and they are willing to know.

But you, you don't know, you foolishly think you know... That is the highest height of ignorance. Everything you want to use it to blame Tinubu.

Since when Obasanjo did pension reform act in 2004, govt have been using bond to pay pensioners lump sum.

You are saying rubbish. I am surrounded by pensioners who have been waiting for donkey years for their pension, despite fulfilling all the verification requirements. Pensioners who retired as far back as 2023 and one who just retired this past Monday. They have been waiting because the government has borrowed their pension for other uses best known to them.

I repeat you are saying rubbish but you don't know you are saying rubbish

I appreciate so much.

ValarDoharis:
Fg wants to borrow that money from the public to pay pension. Pension could have been paid from all the revenue or subsidy removal monies but no, they've stolen those.

But the remaining half or money will be paid monthly?

Ishilove:
A quarter of the money is going to be paid to the pensioners. Usually in Nigeria it is half of the pension that is paid while half remains with the pension managers, but in this particular case it is only a quarter that will get to the pensioners. Take for instance, if GL14 is to receive 7 million, they will now receive 1.750 million, which is very very negligible.

Okay.
So the government just paid their own percent into the PFA account recently, instead of paying dem during active service. Am i correct?

tunjijones:
Let me use an example to illustrate it maybe you wld understand better.

Normally pension is 18 percent of your salary out of which the employee will pay 8 percent and the employer will pay 10 percent. So if someone is earning 100k the pension is 18k. 8k will be deducted from the employee salary while the employer will add 10k to make it 18k.

So in this case, govt is the employer, so as at the time the staff was in active service, the govt wasn't remitting their own 10 percent. Most times they pay it in bulk like the just did now.

I don't know if you understand better now.

Okay.
So after paying the gratuity, no more payment of monthly pension. Am i correct?

Kewekubosineh:
Gratuities is payment made to retiree after putting stipulated years of service.

Pension is the monthly payment made to you for life based on your grade level before retiring from service. it's based on percentage of your monthly salary before retirement.

Love800:
Okay.
So after paying the gratuity, no more payment of monthly pension. Am i correct?

There is monthly pension. Read my comments again on it.

A certain percentage is paid to you as monthly pension. Depending on your salary Grade Level before you retired. Your pension is worked out by relevant agencies of government. This money is domiciled with Pension Managers. And payment is for life!

Thanks so much.
I really appreciate.

Sorry for bothering you. i want to clarify something. This will be my last question. Concerning that payment is for life, is it actually true? I held an argument with some Nairalanders about it. Some said the payment will stop at a point in time!

Kewekubosineh:
There is monthly pension. Read my comments again on it.

A certain percentage is paid to you as monthly pension. Depending on your salary Grade Level before you retired. Your pension is worked out by relevant agencies of government. This money is domiciled with Pension Managers. And payment is for life!

Love800:
Thanks so much.
I really appreciate.

Sorry for bothering you. i want to clarify something. This will be my last question. Concerning that "payment is for life" is it actually true? I held an argument with some Nairalanders about it. Some said the payment will stop at a point in time!

No, payment never stops. It only stops if the person dies.

Just like military pensioners. Their pension ceases if they die. It's for life. Ditto other civil servants.

I appreciate.
Have a wonderful day ahead!

Kewekubosineh:
No, payment never stops. It only stops if the person dies.

Just like military pensioners. Their pension ceases if they die. It's for life. Ditto other civil servants.

Love800:
I appreciate.
Have a wonderful day ahead!

Thanks 👍. It's my pleasure.

ValarDoharis:
Some Northerners that helped him rigged North thought he built Lagos but in 2027, he cannot make that fraudulent claim of Lagos but will be campaigning based on his disastrous 4yrs.

It means the north wants him and not obi

They can want him but ought not to have rigged for him. But that same North will not rig for him 2027 because their lives became worse off

Akpakomiza2:
It means the north wants him and not obi

ValarDoharis:
They can want him but ought not to have rigged for him. But that same North will not rig for him 2027 because their lives became worse off

It's same thing. They didn't want your obi and will never desire him

Rigging is done by few to suppress the majority. If e sure for them, why did they shutdown IREV?

Akpakomiza2:
It's same thing. They didn't want your obi and will never desire him

Love800:
What's the meaning of the topic or headline pls. Am lost!

Enlighten me pls.

When a government can't generate enough tax revenue to cover its budget obligations, it issues debt instruments like bonds and treasury bills to borrow from the public. This age-old practice helps bridge the expenditure shortfall and isn't unique to Nigeria.

In Nigeria's case, Tinubu's government plans to borrow ₦758 billion to clear outstanding pensions and gratuities from 1999 to date. This opportunity will attract banks, pension funds, private equities, and individuals. Here's how it works: bonds are typically set at a fixed interest rate for a specific number of years. For instance, a 5-year bond with a 15% interest rate means that if you invest ₦100 million, you'll receive ₦15 million annually for 5 years, and your initial ₦100 million will be returned after the bond matures

This investment is considered risk-free since the government has a stellar track record of settling its bond obligations over the past 15 years. Typically, high-net-worth individuals, such as former governors, commissioners, bank chiefs, and savvy businesspeople, take advantage of these opportunities. Investing ₦2 billion, for example, could yield ₦300 million annually, risk-free, for 5 years.

I hope you understand now?

I don't really understand it now. But with time after i read it again and research more about it, i will grab the gist.

vanitybutiwanti:
When a government can't generate enough tax revenue to cover its budget obligations, it issues debt instruments like bonds and treasury bills to borrow from the public. This age-old practice helps bridge the expenditure shortfall and isn't unique to Nigeria.

In Nigeria's case, Tinubu's government plans to borrow ₦758 billion to clear outstanding pensions and gratuities from 1999 to date. This opportunity will attract banks, pension funds, private equities, and individuals. Here's how it works: bonds are typically set at a fixed interest rate for a specific number of years. For instance, a 5-year bond with a 15% interest rate means that if you invest ₦100 million, you'll receive ₦15 million annually for 5 years, and your initial ₦100 million will be returned after the bond matures

This investment is considered risk-free since the government has a stellar track record of settling its bond obligations over the past 15 years. Typically, high-net-worth individuals, such as former governors, commissioners, bank chiefs, and savvy businesspeople, take advantage of these opportunities. Investing ₦2 billion, for example, could yield ₦300 million annually, risk-free, for 5 years.

I hope you understand now?