BY SAM OTUONYE
The Director General (DG) of Nigeria Pension Commission (PenCom) Ms.Omolola Owolararan, has revealed that the Commission was targeting an asset growth of over N22 trillion by the end of the year, 2024.
She made the disclosure at the 2024 PenCom Media Conference in Abuja, Thursday, stating that as of October 2024, the Contribution Pension Scheme (CPS) had recorded 10.53 million registered contributors and boasts pension fund assets of N21.92 trillion.
Owolararan emphasised that the impressive growth trajectory was a reflection of the Commission’s unwavering commitment to fund safety, prudent management, and sustainable growth.
She however, highlighted the adverse effects of the current economic crisis, stating: “The economic realities of 2024 and preceding years present unique challenges. High inflation, the devaluation of the Naira, and the lingering effects of unorthodox monetary policies have eroded the real value of pension funds, impacting contributors’ purchasing power.”
To address the challenges, the pension regulator said: “PenCom has initiated a comprehensive review of the Investment Regulations, focusing on diversifying pension fund investments into inflation-protected instruments, alternative assets, and foreign-currency denominated investments. Our goal is to safeguard contributors’ savings and ensure resilience against future economic volatility.”
She disclosed that the Commission was resilient in expanding scope of coverage, reaching the unserved population and ensure that undue delays in paying pensioners is tackled.
“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 institutionalize a sustainable solution, ensuring retirees receive their benefits promptly and without undue stress.”
Speaking to the theme of the conference,
“Tech-Driven Transformation: Shaping the Pension Landscape,” the DG stated the Commission’s strategic commitment to harnessing technology for enhanced pension administration by leveraging innovation to transform service delivery, improve transparency, and drive efficiency across the pension industry.
Highlighting some of the successes achieved by deploying technology Owolararan said:
“This year, we achieved a major milestone with the launch of the e-Application Portal for Pension Clearance Certificates (PCC) in October 2024. This initiative replaces 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 digitize 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, we have 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.”