Nigeria’s Pension Commission, (PENCOM) says it is expanding pension coverage to the unserved populace.
The Director General, Ms. Omolola Oloworaran, during the 2024 PenCom Media Conference held recently, disclosed that the Commission has revamped Micro Pension Plan as it leverages technology to incentivise informal sector participation, making it easier for everyday Nigerians to save for retirement.
Oloworaran said “This initiative aligns with our vision of inclusive growth and financial security for all.”
“We are also addressing delays in retirement benefit payments to retirees of Federal Government treasury-funded MDAs. Recently, N44 billion was released under the 2024 budget appropriations to settle accrued pension rights for retirees from March to September 2023. Moving forward, we are working with the Federal Government to institutionalize a sustainable solution, ensuring retirees receive their benefits promptly and without undue stress.
Speaking on the Commission’s commitment to safeguarding contributor savings through prudent management and sustainable growth practices, Oloworaran said the Commission is exploring investment that could withstand economic headwinds.
“As of October 2024, the CPS has recorded 10.53 million registered contributors and boasts pension fund assets of N21.92 trillion. However, the economic realities of 2024 and preceding years present unique challenges. High inflation, the devaluation of the Naira, and the lingering effects of unorthodox monetary policies have eroded the real value of pension funds, impacting contributors’ purchasing power”.
“To address these challenges, PenCom has initiated a comprehensive review of the Investment Regulations, focusing on diversifying pension fund investments into inflation-protected instruments, alternative assets, and foreign-currency denominated investments. Our goal is to safeguard contributors’ savings and ensure resilience against future economic volatility”.
She added that by leveraging innovation, the Commission has transformed it’s service delivery, improve transparency, and drive efficiency across the pension industry.
“This year, we achieved a major milestone with the launch of the e-Application Portal for Pension Clearance Certificates (PCC) in October 2024. This initiative replaces the manual process, enabling companies to seamlessly apply for and receive PCCs online. This year we have so far issued 38,528 PCCs, significantly enhancing ease of doing business and ensuring compliance”.
The Pension Commission reiterated that it will continue to integrate technology into every facet of the pension industry, for a more accessible, reliable, and sustainable future got the Contributory Pension Scheme.
Olusola Akintonde
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