• Initiative to channel assets to financing critical infrastructure while improving retirement earnings
• Declares ongoing pension act review to protect interests of ordinary Nigerians, address implementation gaps
•Talks underway to settle police pension concerns, others
James Emejo in Abuja
Director General, National Pension Commission (PenCom), Ms. Omolola Oloworaran, yesterday disclosed that the long-awaited Pension Industry Infrastructure Fund (PIIF) has reached an advanced stage of implementation.
The initiative forms part of broader reforms aimed at deploying pension assets to support national development while improving retirement outcomes for Nigerians.
Oloworaran spoke at the 3rd Pension Industry Leadership Council (PILC) meeting and press conference in Abuja.
She said the industry had made significant progress on establishing the infrastructure investment vehicle first announced earlier this year, with a comprehensive framework already developed for consideration by Pension Fund Administrators (PFAs) and other stakeholders.
She said stakeholders are expected to review the framework over the coming weeks, after which decisions on the next phase of implementation are expected within one or two months.
The PenCom DG also stated that the initiative is designed to provide a structured platform through which the pension industry can participate more effectively in financing critical infrastructure without compromising the safety of contributors’ funds.
She noted that the pension industry manages the country’s largest pool of long-term domestic savings, making it well positioned to support investments capable of stimulating economic growth while generating sustainable returns for Retirement Savings Account (RSA) holders.
Oloworaran who read the PILC communique at the end of its meeting further stated that discussions also focused on strengthening the pension industry’s engagement with the capital market to ensure long-term pension assets are deployed more efficiently in support of national development and economic expansion.
She stressed that the commission remained committed on improving retirement outcomes, adding that PenCom is developing a more sophisticated, data-driven investment framework that draws from international best practices while adapting them to the unique economic realities in the country.
According to her, the objective is to ensure contributors earn better returns over their working lives and retire with greater financial security and dignity.
Oloworaran announced that PenCom had commenced a comprehensive review of the Pension Reform Act (PRA), the first major overhaul of the legislation in about 12 years.
She explained that the review seeks to modernise the legal framework governing the Contributory Pension Scheme (CPS) to reflect emerging realities within the financial sector and address implementation challenges identified since the last amendment.
She said, “The objective of the current review is to modernise the Act, reflect current realities and introduce reforms that will improve outcomes for Nigerians under the pension system.”
She added that the exercise would also close identified implementation gaps while strengthening the efficiency and sustainability of the CPS.
According to her, consultations are currently ongoing with organised labour and other stakeholders to ensure the review reflects broad national consensus before the proposed amendments are made public.
She assured contributors that protecting the interests of ordinary Nigerians remained the overriding consideration throughout the review process.
The PenCom DG also reassured police personnel and retirees that the commission is working to address their concerns under the CPS.
Oloworaran said the commission recognises the concerns raised by police personnel and had continued constructive engagement with them and relevant government institutions to improve their welfare.
She noted that the frequency of pension- related protests had reduced considerably in recent times indicating that dialogue was yielding positive results.
According to her, the central issue is not necessarily whether police officers remain under the CPS or operate a separate arrangement, but ensuring they receive improved retirement benefits.
She said PenCom fully supports efforts to enhance the welfare of police retirees and is working with relevant agencies to resolve outstanding concerns as quickly as government processes permit.
She said, “We are working with the relevant agencies to resolve the issues as quickly as possible”, stressing that improving retirement benefits remaind her ultimate objective.
Oloworaran further maintained that all verified pension arrears had already been settled, urging any retiree who believes legitimate arrears remained unpaid to approach the commission for verification and investigation.
She said compliance and enforcement also remained central to PenCom’s reform agenda, noting that the commission had intensified collaboration with anti-corruption agencies to ensure employers remit pension deductions as required by law.
According to her, PenCom is already working with the Independent Corrupt Practices and Other Related Offences Commission (ICPC), while collaboration with the Economic and Financial Crimes Commission (EFCC) is expected to commence shortly.
The commission, she said, is determined to hold defaulting employers accountable and safeguard workers’ retirement savings.
Oloworaran disclosed that PenCom is intensifying financial literacy campaigns ahead of the inaugural National Financial Week scheduled for September.
She said the initiative would bring together regulators, operators, contributors, market participants and other stakeholders to promote financial awareness and encourage greater participation in pension programmes, particularly the Personal Pension Plan targeted at workers in the informal sector.
On the number of states currently implementing the CPS, the PenCom DG pointed out that much progress had been recorded noting two additional states have joined the scheme including Katsina State and Gombe while Ogun is finalising processes to join. This with bring the total number of states under the CPS to nine.
She noted that though the progress is encouraging, “it is still not significant enough”
She said, “We will continue engaging state governments and are also working on incentives that will encourage more states to adopt the CPS.
“I recently held discussions on engaging governors through the Nigeria Governors’ Forum (NGF) to present the benefits of the scheme. Some states are still uncertain about how the scheme operates, so continuous engagement remains necessary.
“Personally, I expect much faster progress. My target is to see at least two-thirds of the states adopt the CPS within the next 24 months. That would represent a major achievement.
“We remain concerned because workers in states that have not adopted the CPS may face challenges accessing their retirement benefits.”
The DG said, “I have consistently maintained that they are pursuing what they believe is in their best interest.
They want improved retirement benefits, and I support that objective. Our engagement with them has continued.
You will notice that the protests have reduced significantly because discussions are ongoing.
“Government processes can sometimes be slow, and I acknowledge that. However, we are working with the relevant agencies to resolve the issues as quickly as possible.
“The real issue is not whether they remain in or exit the CPS. The real objective is to improve their retirement benefits. That is what we are working towards.”
