Nigeria: 8.5 Million Nigerians Enroll in Pension Contributory Scheme - PenCom

The National Pension Commission (PenCom) says it has enrolled no fewer than 8.5 million people into the Pension Contributory Scheme since its inception 15 years ago.

Peter Aghahowa, Head of Communication Department of PenCom, made the disclosure in an interview with the News Agency of Nigeria (NAN) at the ongoing 30th Enugu International Trade Fair.

NAN reports that the scheme introduced in 2004 by the federal government was a process where certain percentage of enrollees' salaries was saved on monthly basis in a pool with the employers also contributing.

The scheme had PenCom as the regulatory body with Pension Fund Administrators (PFA) working in their behest.

Aghahowa said the scheme had made the life of retirees much easier, unlike the defined benefits scheme which it replaced.

He however, said it was sad that in spite of the enormous advantages inherent in the scheme, some state governments had yet to embrace it to make life better for retirees in their respective states.

"The federal government went into the contributory scheme as the old scheme became unsustainable due to huge debt deposits.

"This new scheme is funded ab initio and it reduces the financial load on government," he said.

Mr Aghahowa said it had become imperative for every state of the federation to queue into the scheme for easy pension administration.

The PenCom spokesperson, however, said in spite of current challenges facing certain pensioners under the old scheme, more funds were being released for pensioners that started under the defined benefits scheme.


See What Everyone is Watching

More From: Premium Times

Don't Miss

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.