23 December 2012

Nigeria: NACCIMA Blames FG for Poor Development, Low Pension Contribution

The Nigerian Association of Chambers of Commerce Industry, Mines and Agriculture (NACCIMA), the umbrella organisation for the organised private sector (OPS) has said that the Federal Government was responsible for most of the challenges facing the manufacturing sector.

Speaking exclusively to LEADERSHIP SUNDAY, the NACCIMA Director General, Dr. John Isemede, said the FG has not been able to provide the enabling environment that would encourage productive development, adding that without adequate infrastructure and access to funds, creation of jobs which is one of the priority areas of the Federal Government would not be achieved.

He also said that the pension scheme, which is a laudable government initiative has been seriously affected because some enterprises especially the sole proprietors and Small and Medium Scale enterprises have ignored regulators demands and refused to participate in the scheme.

A recent report from Financial Derivatives Company (FDC) said a major challenge confronting the pension scheme is the average compliance rate within the working population, which it said is dominated by mostly Small and Medium Enterprises that have refused to participate due to poor returns on investment.

The report said "The current roughly five million participants in the contributory pension scheme is still a far cry from the estimated 56 million potential contributors," the report said the available N2.4 million investible funds are far below the possible capital formation.

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