PENSION OPERATORS PUSH FOR GREATER ROLE IN ECONOMIC GROWTH

Bamidele Dave, Abuja.

Pension fund operators have called for greater investment of Nigeria’s N31.8 trillion pension assets in productive sectors of the economy to support infrastructure development, housing, energy and other critical areas.

They said the pension industry could play a significant role in achieving the Federal Government’s $1 trillion economy target by channeling long-term domestic capital into investments that stimulate economic growth while safeguarding contributors’ retirement savings.

The Chief Executive Officer of the Pension Fund Operators Association of Nigeria (PenOp), Mrs Anthonia Ifeanyi-Okoro, made this known on Wednesday in Abuja at a conference organised for pension correspondents.

Ifeanyi-Okoro, represented by the Head of Business Development, Media, Brands and Communications at PenOp, Ms Olajumoke Akinwa, said achieving the $1 trillion economy ambition required deliberate capital formation, long-term investment and strong institutions.

“A $1 trillion economy is not an abstract ambition. It is a goal that demands deliberate capital formation, long term investment, and strong institutions working in step,” she said.

She described pension funds as one of the largest pools of long-term domestic capital in the country, noting that their effective deployment could support economic expansion without undermining retirement benefits.

According to her, while the National Pension Commission (PenCom) provides the regulatory framework, oversight and confidence needed to sustain the system, operators are responsible for ensuring disciplined and prudent investment decisions.

She stressed that neither the regulator nor operators could achieve the desired results independently, calling for stronger collaboration among government agencies, businesses and development partners.

Also speaking, the Director-General of PenCom, Ms Omolola Oloworaran, said retirees under the Contributory Pension Scheme (CPS) now receive their benefits within a maximum of 48 hours of retirement.

Oloworaran, represented by the Head of Corporate Communications, Mr Ibrahim Buwai, disclosed that the Commission had introduced several initiatives under the Presidential Pension Security Initiatives to strengthen retirement security and improve pensioners’ welfare.

He said the initiatives cover pension healthcare, recovery, health insurance and the Minimum Pension Guarantee.

According to him, the PenCare health insurance initiative was designed to remain sustainable beyond changes in the Commission’s leadership, with an independent board of trustees comprising stakeholder representatives and health experts overseeing its operations.

On the Minimum Pension Guarantee, Buwai explained that although the provision was introduced in the Pension Reform Act of 2004, implementation had been delayed by funding challenges.

He said President Bola Tinubu had unveiled the initiative, adding that pensioners whose monthly payments fall below the new minimum would have their pensions automatically increased to the guaranteed level.

Buwai also clarified that pension reforms had not abolished existing retirement benefits, noting that the law allows employers to provide additional benefits to their workers.

He assured journalists that the Commission would continue to verify information before making public announcements, stressing the importance of communicating initiatives that were already being implemented.

Meanwhile, the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Ms Tolulope Odunaiya, said the agency had introduced three initiatives to improve the welfare of pensioners under the Defined Benefits Scheme (DBS).

Odunaiya, represented by PTAD’s Head of Corporate Communications, Mr Olugbenga Ajayi, said one of the initiatives, known as ‘Accreditation Without Borders’, allows pensioners to complete their enrollment on the agency’s payroll through an online platform without visiting physical offices.

He said the initiative would particularly benefit pensioners living in rural communities and Nigerians residing abroad.

Ajayi also disclosed that PTAD had launched a retiree health insurance platform designed to provide pensioners under the scheme with free and accessible healthcare services.

He added that the agency had introduced a system for verifying the deaths of pensioners through periodic record updates, reducing its reliance on reports from relatives and pensioners’ associations.

According to him, pension payments to the affected retirees are now up to date, while the agency remains committed to introducing further measures to improve their welfare.

In another presentation, the Chief Executive Officer and Co-founder of Awabah, Mr Tunji Andrews, called for greater inclusion of informal sector workers in Nigeria’s pension system.

He said approximately 80 per cent of Nigerians, representing about 160 million people, work in the informal sector and earn less than five dollars daily, leaving many without adequate financial protection, healthcare access or retirement plans.

Andrews said Awabah, established in 2021, had provided more than 50,000 informal and semi-formal workers with access to financial wellness services.

He commended PenCom’s reforms to the Personal Pension Plan (PPP), saying the number of information fields required to register customers had been reduced from about 35 to four.

According to him, the simplified registration process and supporting infrastructure were already in place, but greater public awareness remained necessary to increase participation.

He urged the media to intensify public education on the benefits of pension savings, particularly among informal sector workers.

Earlier, the President of the Pension Correspondents Association of Nigeria (PenCAN), Dr Nana Musa, commended PenCom for providing a platform to strengthen engagement between pension industry stakeholders and the media.

Musa said pension correspondents recognised their responsibility to inform, educate and hold stakeholders accountable through accurate, balanced and responsible reporting.

She urged journalists to sustain efforts towards bridging information gaps and improving public understanding of pension contributions, savings and retirement security.

The conference, themed “The Role of Regulator, Operators in Actualising Nigeria’s $1 Trillion Economy Target,” brought together pension regulators, operators and journalists to examine the industry’s contribution to national economic development.

Highpoint of the event was the presentation of an award to the Director-General of PenCom, Ms Omolola Oloworaran.