13. Redemptions and escalation

A member can cash in some or all of their units. The redemption is paid within 7 working days.

13.1 A member asks to redeem

Who can do this: an ACTIVE member, from their Investments page.

1. The member opens their membership card and selects Redeem units.
2. The dialog is titled "Redeem {code} units". The member types Units to redeem (up to 4 decimal places).
3. The member selects Request redemption.

How it is priced

• The price is the NAV in force today.
• The cost basis is the member's average cost.
• Withholding tax is charged on the return above cost (the default) or on the gross proceeds, at the scheme's redemption rate (the default is 0%).
• The pay-by date is today plus 7 working days (Monday to Friday).
• The member gets a reference: {code}-RED-….

Worked example (SCAFI)

Musa asks to redeem 100 units. The NAV in force is ₦1,020.

Step	Calculation	Amount
Gross	100 × ₦1,020	₦102,000
Withholding tax	Redemption rate is 0%	₦0
Net	₦102,000 − ₦0	₦102,000

If the request is made on Monday 26 October 2026, the pay-by date is Wednesday 4 November 2026.

What happens next

• The member is told "Redemption {ref} received", with gross, withholding tax and net.
• The admins (CSA and PA) are told: "{code}: redemption to settle by {date}".
• While the status is Requested, the member can select Withdraw.

Working days are Monday to Friday. The system does not skip public holidays. Plan for this when a holiday falls inside the 7 working days.

13.2 Staff view of open redemptions

On the Redemptions tab, the "Open redemptions" list shows:

• The due date, shown as "due by {date}", or "overdue since {date}".
• The gross amount and the return above cost.
• The withholding tax.
• "pay ₦X" to the masked account.

13.3 Decide a redemption

Who can do this: CSA or PA.

1. Open the Redemptions tab.
2. Find the request and select Approve or Decline.
3. Type a reason.

• Approve: the member is told. The FEO is told that the payout is due by the pay-by date.
• Decline: the member is told, and any open escalations are closed.

13.4 Record the payout

Who can do this: a Finance maker (CSA, PA or FEO), with MFA.

1. Open the Redemptions tab.
2. Find the approved redemption and select Record payout.
3. Type the Custodian payment reference.
4. Select Save.

What happens next

• A disbursement is created.
• The ledger shows: debit {code}-UNITHOLDERS. Credit {code}-CUSTODY for the net amount, and {code}-WHT for the tax.
• A Finance Approver approves it in Transactions.
• After approval, the units are redeemed. The status becomes SETTLED, which is shown as "Paid". Open escalations close.
• The member is told "Redemption {ref} paid", with the units, NAV, gross, withholding tax and net.
• If the payout is reversed, the units are given back to the member and the redemption goes back to APPROVED.

13.5 Redemption statuses

System status	Shown as
REQUESTED	Requested
APPROVED	Approved
REJECTED	Declined
CANCELLED	Withdrawn
SETTLED	Paid

13.6 Escalation: when a decision or payout stalls

DFFMS checks every redemption each day at 06:00 UTC (07:00 in Nigeria). It escalates any redemption that is still not paid by its pay-by date.

Level	Who is told	When
Assignees	Scheme admins (CSA and PA) while the request is Requested. FEO and FA once it is Approved.	From the start.
Level 1: Programme Administrator (PA)	The PA	On the first daily check after the pay-by date has passed.
Level 2: Client System Administrator (CSA)	The CSA	When the request is more than 3 working days past its pay-by date.

The member is also told when an escalation is raised.

The escalation timing for redemptions is fixed in the system. It cannot be changed in the Configuration settings.

Worked example of the ladder

The pay-by date is Wednesday 4 November 2026.

• Thursday 5 November: the first daily check after the pay-by date passes. Level 1 is raised. The PA is told.
• Monday 9 November: 3 working days have passed since the pay-by date. Level 2 is not raised yet.
• Tuesday 10 November: 4 working days have passed. Level 2 is raised. The CSA is told.

Escalations close by themselves when the request is decided, or when it is paid.

Escalate by hand

Use this when you need a decision sooner.

1. Open the Redemptions tab, and the request.
2. In the Escalation panel, select Escalate. The dialog is titled "Escalate for a decision".
3. Fill in:
   • What needs a decision.
   • Reason. At least 10 characters.
4. Select Save.

The panel records who raised the escalation and why. The source row says "Escalated to {tier}", and shows the staff member's name. An automatic escalation shows "Service-level sweep" as its source.

When a level is already reached by a manual escalation, the daily check does not raise it again.

Resolve an escalation

• Select Resolve.
• Type How was this resolved?. At least 5 characters.
• Only the PSA, the CSA, the PA, or the person who raised the escalation can resolve it.

13.7 Withdraw a request

The member can withdraw a redemption only while it is Requested. Once it is approved, it cannot be withdrawn.

Redemption history columns

Reference, Member, Units, Gross, WHT, Net, Due by, Paid, Status.

Common problems

Problem	What to do
"Only an ACTIVE member can redeem."	The member is suspended or not yet verified.
The member cannot redeem some units	Those units are already in a pending request.
The escalation did not appear	The daily check runs at 06:00 UTC. Check again the next day, or escalate by hand.
The payout waits for a long time	It needs a Finance Approver to approve it in Transactions.