The National Pension Commission (PenCom) of Nigeria has reaffirmed its commitment to advancing pension reforms and ensuring compliance with the Contributory Pension Scheme (CPS). This follows a meeting between PenCom’s Director General, Omolola Oloworaran, and the President of the Trade Union Congress (TUC), Festus Osifo, in Abuja. The aim of the meeting was to strengthen the partnership between PenCom and the TUC, a vital stakeholder in the pension industry.
PenCom is collaborating with the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance to develop mechanisms that will enable pension investments to generate returns in dollars, while being made in naira. This initiative seeks to safeguard retirement funds and enhance the overall sustainability of the CPS. The commission emphasized that all employers are obligated to remit pension contributions on behalf of their employees, as mandated by the Pension Reform Act (PRA) 2014.
To expand investment opportunities and deliver better returns, PenCom plans to unveil a revised Investment Regulation, focusing on alternative investments. This move is expected to have a positive impact on the pension industry, ensuring that retirement funds are managed effectively and efficiently. The TUC has been a crucial partner in PenCom’s efforts to promote pension reforms, and the commission values its contributions as a member of the PenCom Governing Board.
The meeting between PenCom and the TUC comes after recent developments in the pension sector, including the appointment of Opeyemi Agbaje as the chairman of PenCom by President Bola Ahmed Tinubu. This appointment followed the Nigeria Labour Congress’s threat to embark on a strike over the non-constitution of a pension board. With the new leadership in place, PenCom is poised to drive pension reforms forward, working closely with stakeholders like the TUC to ensure the long-term sustainability of the CPS.
As PenCom continues to work with the CBN and other stakeholders to develop innovative solutions for the pension industry, the commission’s efforts to dollarize revenue from pension investments are expected to yield positive results. This initiative has the potential to enhance the value of pension funds, ultimately benefiting retirees and contributing to the overall growth of the Nigerian economy. With its commitment to transparency, accountability, and effective management of pension funds, PenCom remains a critical institution in Nigeria’s efforts to provide a secure and sustainable retirement system for its citizens.