Nigeria has launched a new pension scheme after its previous one collapsed with liabilities of 2 trillion naira ($15 billion), and operators give the new scheme high chances of success despite union concerns, Reuters reported. The oil-exporting country of over 140 million people is still struggling to pay arrears of 60 billion naira ($471 million) under its old government-run scheme, which ran into problems as employers failed to fund it and corrupt officials looted it. The new scheme, run wholly by the private sector, began deducting money from civil servants' salaries in 2004 and the government last month issued new licences to 17 financial institutions which are expected to start investing shortly. "There are some fears about whether this would work, but I believe the structures they have taken will ensure its success," said Yinka Sanni, Managing Director of IBTC Pensions, a subsidiary of IBTC Chartered Bank, one of the companies licensed to administer the new pensions. The Nigeria Labour Congress, which represents over four million workers, says its members should be wary of some of the new operators, arguing that they have been set up to make easy money off workers. "The negative reaction is based on the experience of people who put money in similar ventures in the past and were not satisfied with what happened to their money," John Odah, NLC General Secretary told Reuters. --more 22 05 Local Time 19 05 GMT
