The Need for Infrastructural Development a case for Housing as the Pension Fund Assets Hit 4.3 Trillion Naira.-Odunze Reginald C

The importance of housing can be seen in its place in the 1999 constitution of the Federal Republic of Nigeria. S.16 (I)(d) provides as one of the fundamental objectives  and directive principles of the Nigeria state policy, the provisions of suitable and adequate shelter for all citizens, the same was made in the 1979 constitution ( Nigeria constitution 1979, 1999 and FMBN 2006)

Continuing the FMBN bulletin 2006 stated that FMBN Act 1993 and the Mortgage Institutions Act 1989 all fell short of desired impact on housing and Mortgage industry. The National Housing Policy 2002 according to FMBN is to ensure that all Nigerians own or have access to decent, safe and sanitary housing accommodation at affordable cost and secure tenures. But this is not been achieved, as NHF has been involved in the refund of contributions which cannot afford enough blocks talk less of building houses.

Therefore there is that urgent need for infrastructural development, a case of housing as most retirees are faced with the great task of building their own houses. In an article on 15 costly mistakes pensioners make, Odunze (2014) in the verynewsinfo.com highlighted that one of the pension mistakes is using retirement money to build a house after retirement. It should be noted that building houses after retirement aggravates the retiree health as the retirement money  is not enough to erect a house coupled with the ignorance of the retirees who thought that they will  be paid everything in the retirement savings account balance only to hear the bitter truth of the provisions of the Pension Reform Act  2004  for 25 percent. And so the need for such housing development cannot be over-emphasized as in all investments instruments, it is investment in housing that appreciates astronomically. In an article in the Telegraph Newspaper of London, Richard Dyson noted in article captioned “ £1,250bn and rising , how buyer to let is overtaking Pension”  that  “The value of property owned by Britain’s growing army of buy-to-let investors is fast approaching the value of the entire workforce’s pension savings built up over decades of employment. At £1.25 trillion – £1,250bn – the value of the flats and houses owned by almost two million small-time landlords is catching up on the £1.6 trillion total amassed in workers’ pension schemes.“

In a recent announcement while announcing the world pension summit, the Acting Director General of National Pension Commission, Chinelo Aholu stated that the pension assets has hit 4.3 Trillion and still counting. That provides enough investment outlay for infrastructural development in housing.

The Former Governor of the Central Bank, Mr. Sanusi had canvassed for the use of the fund for infrastructure development. In an article in Punch 2011 captioned ”Safeguarding Pension Funds”  it reported that the Central Bank Governor has canvassed for the use of the pension fund in rescuing the decayed infrastructure , however the paper was quick to add “but this should be discouraged because of the underlying factors of mismanagement” continuing it states that as “plausible as this idea may seem to have, are problems of corruption, inflated contracts and abandoned projects which may threaten investments in such areas. The paper concluded that it is necessary to “avoid a situation where money may not be available when pensioners are ready to collect their life savings”  All these stems from fear of the unknown which I don’t blame them because corruption had at one time or the other affected, the smooth running of some laudable policies.

Be as it may , it is a good proposition but do we because of fear of corruption allow the retire to suffer in  using the pension to start building a house and the risk of inflation on the said fund, bearing in mind that the majority of the retirees still use the retiree fund to build houses. The result is more abandoned project as most retirees are the last phase of their circle of existence and may not be able to complete such projects.

In most developed countries in Europe and America, pension fund are being used for infrastructural development especially in the area of housing. But what they do here is that they build houses for lease and rent, and non is used for outright sale. They discovered that of all investment in life, it is real estate that has the highest rate of return. As a house that was bought in 2012 for 5 million cannot be sold for the same amount even within a period of 3 months. As both land and building appreciates over a period of time.  Jerry Lewis, the owner MacDonald, once stated that he is getting his wealth through real estate and not through the restaurant.

Since the masses are afraid of corruption ravaging the fund, if it used for infrastructural development, they can work out the following:

The retirement saving balance can be used to access mortgage under strict compliance

The commission in conjunction with PFA and PFC can embark on massive housing project with part of the fund as a way of ensuring housing for all.

As we look forward for the amendment of the Pension Reform Act 2004 , let us remember and bear in mind the words of Richard Dyson that “ while traditional pension saving is complex and unpopular with many, the phenomenon of buying-to-let is now growing at its fastest rate ever, spurred by rising rents and house prices and cheap mortgages.” Will the pensioners be able to afford the rising prices of houses and rents knowing quite alright that if they know they can’t afford it at their point of retirement they make resort corruption during their working life.

CBN AND CASHLESS SCHEME, ISSUES AND CHALLENGES IN NIGERIA.-ODUNZE REGINALD C

Starting from July 1 2014, cashless policy will be implemented across all states of the federation in Nigeria by the central bank of Nigeria.

This is a good development but calls for caution; this means that E banking solutions will be on the increase, for banking convenience and higher transactions limits and also for safety purposes.

But safety is the issue, it affords customers safety from the attacks of hoodlums, armed robbers etc. it affords the opportunity of banking from the comfort of your homes. It makes buying convenient and whole lots of opportunities. It will increase investment in purchase of pos and create employment for the teaming populations

But beyond these there are the activities of hackers, password sniffers, web crammers’ data kidnappers, software pirates, cyber squatters and unlawful interceptors. This is where the issues are of paramount concern. There are the yahoo boys who can break into secured networks and do bank transfer. They are not deterred by barriers. The attack on Sony customers and more recently e Bay customers are still fresh in our minds.

In his book "The Lexus and the Olive Tree", Thomas L Friedman, often makes reference to the electronic herd. He went on to say that the electronic herd is a group of several thousand often young people who control great sums of electronic money; they are individuals who work for large banks, mutual funds, investment funds and the like. They have the power with the click of the mouse to move literally trillions of dollars from one country to the other in a split second. That makes the electronic herd more powerful than the politician.( Kiyosaki)

So also the evil men with wrong knowledge can also do more than that, remember the case of Osamo, the young Nigerian masters degree holder in computer engineering who was involved in 2005 on such fraud related issues in Texas that drove the American Government to sentence him to life imprisonment without option of fine (Source How to Rob a Bank, 2005/2006 CNN Documentary)

With the so called electronic herd, how do we safeguard the customers from these evil men and that is why in these period of cashless policy, banks should endeavor to safeguard their systems by building an adequate firewall and also employing ethical hackers to safeguard the bank customers by fashioning out a formidable software to protect the customers, this is because the world of money is filled with charlatans and con men   (Kiyosaki) The banks should also collaborate with foreign bodies on the outright ban of IP mask, a software that hides IP addresses.

As we go cashless on July 1 2014, customers should be cautious and be weary of unauthorized request from introducers who are interested in harvesting passwords.

Let us follow the advice of Alan Woodward, a security expert on how to protect passwords, and according to Leo Kelion (BBC News), they are as follows:

• Don't choose one obviously associated with you: Hackers can find out a lot about you from social media so if they are targeting you specifically and you choose, say, your pet's name you're in trouble.
• Choose words that don't appear in a dictionary: Hackers can precalculate the encrypted forms of whole dictionaries and easily reverse engineer your password.
• Use a mixture of unusual characters: You can use a word or phrase that you can easily remember but where characters are substituted, e.g., Myd0gha2B1g3ars!
• Have different passwords for different sites and systems: If hackers compromise one system you do not want them having the key to unlock all your other accounts.
• Keep them safely: With multiple passwords it is tempting to write them down and carry them around with you. Better to use some form of secure password vault on your phone.

As we embark on the full cashless policy throughout the federation, having implemented in Lagos, Abuja Etc let us keep the necessary precautions and enjoy a cashless scheme.