The National Pension Commission has reaffirmed its commitment to ensuring retirees receive their benefits without delays while projecting that pension assets will exceed N22 trillion by the end of 2024.
Speaking at a media conference in Abuja, the Director-General of PenCom, Omolola Oloworaran, said the commission is collaborating with the Federal Government to establish a sustainable system for prompt retirement benefit payments.
“Recently, N44 billion was released under the 2024 budget 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,” Oloworaran said.
Oloworaran noted that expanding pension coverage remains a top priority for the commission. The revamped Micro Pension Plan, she said, uses technology to encourage informal sector participation, enabling everyday Nigerians to save for retirement.
“This initiative aligns with our vision of inclusive growth and financial security for all,” she added.
Despite economic challenges such as inflation, naira devaluation, and the effects of unorthodox monetary policies, PenCom has taken steps to protect pension funds.
“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,” Oloworaran said.
She emphasized that the projected N22 trillion in pension assets reflects the commission’s commitment to prudent management and sustainable growth.
Highlighting the theme of the conference, “Tech-driven Transformation Shaping the Pension Landscape,” Oloworaran revealed that PenCom achieved a significant milestone in October 2024 with the launch of the e-Application Portal for Pension Clearance Certificates.
“This initiative replaced the manual process, enabling companies to seamlessly apply for and receive PCCs online. So far this year, we have issued 38,528 PCCs, enhancing ease of doing business and ensuring compliance,” she said.
In addition, the Pension Industry Shared Service Initiative is nearing completion. This system will digitize pension contributions and remittances, ensuring smoother processing of Retirement Savings Account contributions and resolving discrepancies caused by incomplete remittance details.
PenCom has also introduced measures to enhance contributors’ experiences, including a revised programmed withdrawal template and adjustments to voluntary contributions and en-bloc payments in line with the new minimum wage.
“These measures are designed to make retirement processes more efficient and user-centric,” Oloworaran explained.
Oguche Agudah, the Chief Executive Officer of the Pension Fund Operators Association of Nigeria (PenOp), praised the sector’s steady growth, attributing it to innovations and strategic investments. He emphasized the importance of targeted investments for 2025.
“As we integrate technology into every facet of the pension industry, we are shaping a future where the Contributory Pension Scheme becomes more accessible, reliable, and sustainable,” Oloworaran said, urging media practitioners to continue amplifying PenCom’s efforts to educate stakeholders across Nigeria.
