By Leah Katung-Babatunde
The Contributory Pension Scheme (CPS) has recorded 10.53 million registered contributors and boasts of pension fund assets of N21.92 trillion as of October 2024; it is targeted to exceed N22 trillion in 2024, a reflection of the unwavering commitment to fund safety, prudent management, and sustainable growth by the National Pension Commission (PenCom).
Director General (DG) of PenCom Ms Omolola Oloworaran made the assertion Thursday in Abuja, Nigeria’s capital.
She was speaking at the 2024 PenCom Media Conference witht eh theme: “Tech-Driven Transformation: Shaping the Pension Landscape”.
The DG pointed out that the economic realities of 2024 and preceding years have presented unique challenges to the pension industry: “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,” she added.
In addressing these challenges, she said 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. The goal is to safeguard contributors’ savings and ensure resilience against future economic volatility.
The DG applauded the Nigerian media for consistently being a vital pillar in nation-building. “Your role in informing, educating, and influencing public opinion cannot be overstated. At PenCom, we deeply appreciate the power of your platforms and are committed to strengthening our partnership to ensure effective dissemination of information about the CPS.
“This conference is an opportunity to update you on significant milestones within the pension industry and share our strategies to address emerging challenges.
“It is with great delight that I welcome you to the 2024 PenCom Media Conference, a pivotal gathering aimed at fostering stronger collaboration between PenCom and the media. This forum underscores the critical role of media practitioners in shaping public perception, advancing awareness, and driving the growth of the Contributory Pension Scheme (CPS) and other pension-related matters in Nigeria”.
It is her first official engagement with the media, since assuming office as Director General of PenCom. Mr Oloworaran assures she will build on the robust partnership that has long existed between PenCom and the media to redefine the pension landscape and position it as a beacon of innovation and trust.
“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.
“Additionally, the Pension Industry Shared Service Initiative is in advanced stages of implementation. This initiative will digitize pension contributions and remittances, ensuring seamless processing of Retirement Savings Account contributions and resolving discrepancies caused by incomplete remittance details.
“To further enhance contributors’ experiences, we have introduced a revised programmed withdrawal template, simplifying access to voluntary contributions and revising the threshold for en-bloc payments in line with the new minimum wage. These measures are designed to make retirement processes more efficient and user-centric,” she added.
On reaching the unserved, the PenCom DG affirmed expanding pension coverage remains a top priority for the Commission. “Our revamped Micro Pension Plan leverages technology to incentivize informal sector participation, making it easier for everyday Nigerians to save for retirement. 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.”
Looking ahead PenCom is integrating technology into every facet of the pension industry, shaping a future where the CPS becomes more accessible, reliable, and sustainable to ensure that every Nigerian, including the most vulnerable, has access to a secure and dignified retirement.
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