The National Pension Commission (PenCom) has announced its collaboration with the Federal Government to establish a sustainable solution that ensures retirees receive their benefits promptly and without unnecessary stress. This was revealed by the Director-General, Omolola Oloworaran, during a media briefing in Abuja on Thursday.
Oloworaran emphasized that expanding pension coverage remains a top priority for the Commission. She highlighted the revamped Micro Pension Plan, which uses technology to encourage participation from the informal sector, making it easier for Nigerians to save for retirement. This initiative aligns with the Commission’s goal of fostering inclusive growth and financial security for all.
Addressing delays in pension payments to retirees from Federal Government treasury-funded MDAs, Oloworaran mentioned that ₦44 billion had recently been released under the 2024 budget to settle accrued pension rights for retirees from March to September 2023. The Commission is working closely with the Federal Government to institutionalize a sustainable solution that ensures timely and stress-free benefit disbursements in the future.
Looking ahead, Oloworaran said the Commission expects to close 2024 with over ₦22 trillion in pension assets, reflecting its commitment to fund safety, prudent management, and sustainable growth. She also acknowledged the economic challenges of 2024, including high inflation, naira devaluation, and the impact of previous monetary policies, which have reduced the real value of pension funds and affected contributors’ purchasing power.
To mitigate these issues, PenCom is conducting a comprehensive review of its investment regulations, focusing on diversifying pension fund investments into inflation-protected instruments, alternative assets, and foreign currency-denominated investments.
The conference, themed “Tech-driven Transformation Shaping the Pension Landscape,” also showcased PenCom’s strategic commitment to innovation. The CEO of the Pension Fund Operators Association of Nigeria (PenOp), Oguche Agudah, highlighted that sector innovations have led to steady growth in pension fund assets, with targeted strategic investments planned for 2025.
This year, PenCom achieved a major milestone with the launch of the e-Application Portal for Pension Clearance Certificates (PCC) in October 2024. This online system replaces the previous manual process, allowing companies to apply for and receive PCCs more efficiently.
To further improve contributors’ experiences, PenCom introduced a revised programmed withdrawal template, making it easier to access voluntary contributions and adjusting the threshold for en-bloc payments in line with the new minimum wage. These changes are designed to streamline retirement processes and make them more user-friendly. PenCom also plans to make the Contributory Pension Scheme (CPS) more accessible in the future.
