·Oloworaran: Inflation, Naira devaluation, unorthodox monetary policies have eroded real value of pension funds, impacted contributors' purchasing power, reviews investment regulations
The Director-General, National Pension Commission (PenCom), Mrs. Omolola Oloworaran, yesterday projected total pension assets to reach N22 trillion by year-end from the current N21.92 trillion as of October.
Speaking at the 2024 PenCom media conference with the theme, "Transforming the Nigerian Pension Industry through Technological Innovations", in Abuja, she also said the Contributory Pension Scheme (CPS) had recorded 10.53 million registered contributors, adding that the numbers reflected the commission's unwavering commitment to fund safety, prudent management, and sustainable growth.
She also said the economic realities of 2024 and the preceding years presented unique challenges amid inflation, devaluation of the Naira, and lingering effects of unorthodox monetary policies, which had eroded the real value of pension funds, impacting contributors' purchasing power.
The PenCom boss said to address some of the macroeconomic challenges, the commission had 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.
Oloworaran further disclosed plans to rebrand the micro pension scheme to make it more attractive to the informal sector particularly ordinary Nigerians, encouraging them to save as well as revitalise the economy.
She said micro pensions remained an "area that I'm very passionate about because it's important that we get the informal sector into the CPS, particularly ordinary Nigerians.
"Since I resumed office, I've been having a series of engagements with the operators and also within PenCom on how we can drive micro-pensions
"In the next few months, what we hope to do is a rebranding, because right now we call it micro-pensions, and there are some people in the informal sector who are not micro."
She said, "And they are far from being micro. You have people in Nollywood, you have people who are running their own businesses, small businesses, but make a lot of income from that.
"The name micro-pension doesn't resonate across the board, yes. What we are trying to do is to rebrand and give it a name that resonates across all Nigerians.
"And what we want to do in the rebranding is to make it personal to people. So, it won't just be one name. We will have an umbrella name, and then we will have segments that speak to various components of society, such that people can feel and buy into it."
The PenCom DG further explained that products that address the concerns of separate components of the society will also be introduced.
She said micro-pension will come under an umbrella name after the rebranding exercise.
She said, "One thing I'm passionate about is ordinary Nigerians. Yes, we know they are struggling, things are tough, but we must get them to save. So, I am very passionate about that.
"We are trying to look at how we can incentivise them such that they are propelled to contribute - imagine that things are tough today for ordinary Nigerians, and you don't have savings. What then happens in your old age?
"And things are getting tougher by the day. So, that's an area we are passionate about and we are working on. In the next few months, maybe through next year, is what we are focused on.
"It's a huge plan in terms of how we want to expand the current micro-pension scheme, and we are working on that and I do hope that and pray that we make a success of it because the success of the scheme, bringing the informal sector into the CPS, into the contributory pension scheme, will help to also revitalise the economy.
"You make people want to work more, people put their money and savings, these savings then become capital that people can employ to do other businesses. It creates free access to capital."
Nonetheless, Oloworaran said the goal was to safeguard contributors' savings and ensure resilience against future economic volatility.
She said expanding pension coverage remained a top priority for the commission, pointing out that the revamped Micro Pension Plan (MPP) 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," she added.
According to her, the commission is also addressing delays in retirement benefit payments to retirees of federal government treasury-funded MDAs, stressing that N44 billion was recently released under the 2024 budget appropriations to settle accrued pension rights for retirees from March to September 2023.
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She said moving forward, "We are working with the federal government to institutionalise a sustainable solution, ensuring retirees receive their benefits promptly and without undue stress."
She also noted that the commission aimed to leverage innovation to transform service delivery, improve transparency, and drive efficiency across the pension industry.
She said this year PenCom had achieved a major milestone with the launch of the e-Application Portal for Pension Clearance Certificates (PCC) in October 2024, replacing the manual process, and enabling companies to seamlessly apply for and receive PCCs online.
She said the initiative had so far issued 38,528 PCCs, significantly enhancing ease of doing business and ensuring compliance.
Speaking on the road ahead, Oloworaran said the commission intended to integrate technology into every facet of the pension industry.
She added, "We are shaping a future where the CPS becomes more accessible, reliable, and sustainable", and called for unwavering support from media practitioners.
