The National Pension Commission has said it is working with the Federal Government to institutionalise a sustainable solution, ensuring retirees receive their benefits promptly and without undue stress.
This was revealed by the Director-General, Omolola Oloworaran at a media conference in Abuja on Thursday.
“Expanding pension coverage remains a top priority for the Commission. Our revamped Micro Pension Plan leverages technology to incentivise 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 institutionalise a sustainable solution, ensuring retirees receive their benefits promptly and without undue stress.”
Oloworaran also said the commission is projecting to close 2024 with over N22 trillion in pension assets.
“These numbers reflect our unwavering commitment to fund safety, prudent management, and sustainable growth,” Oloworaran said.
She highlighted the economic challenges of 2024, including high inflation, naira devaluation, and the lingering effects of unorthodox monetary policies, which have eroded the real value of pension funds and impacted contributors’ purchasing power.
According to her, to address these issues, PenCom has initiated a comprehensive review of its investment regulations, focusing on diversifying pension fund investments into inflation-protected instruments, alternative assets and foreign currency-denominated investments.
She added that the conference, themed: “Tech-driven Transformation Shaping the Pension Landscape”, showcased PenCom’s strategic commitment to innovation.
Also in his presentation, the Chief Executive Officer of the Pension Fund Operators Association of Nigeria (PenOp) Oguche Agudah noted that innovations in the sector have led to steady growth of pension fund assets, adding that “Strategic investments will be targeted for the year 2025.”
This year, the commission said it achieved a major milestone with the launch of the e-Application Portal for Pension Clearance Certificates (PCC) in October 2024.
This initiative, it said replaced 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 digitise 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, PenCom said it 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.
Going forward, it said it would introduce a system where Contributory Pension Scheme (CPS) becomes accessible.
“As we integrate technology into every facet of the pension industry, we are shaping a future where the CPS becomes more accessible, reliable, and sustainable. However, this transformation requires your unwavering support as media practitioners. Your role in amplifying our efforts and enlightening stakeholders across Nigeria is crucial.”