Follow Us on Google
Uche Usim, Abuja
Barring any last minute changes in programmes, the National Pension Commission (PenCom) said it will, before this month end, launch a Micro Pension Plan, which is expected to attract N3 trillion into its current N8.45 trillion pension assets.
A top government source who disclosed this to Daily Sun also revealed that the programme targets to attract over 20 million workers, a development he said was consistent with Federal Government’s blueprint on job creation.
He said: “PenCom as industry regulator, has put necessary machinery in motion to ensure smooth launch and take off of the plan.
“To ensure seamless operations, PenCom, together with pension fund operators, have built robust Information Technology (IT) infrastructure that will support the plan.
“The Commission has also had engagements with informal sector groups, such as the Nigerian Union of Textile, Garment and Tailoring Workers of Nigerian (NUTGTWN), a body consisting self employed tailors and garment workers; partner trade associations, Non Governmental Organisation (NGOs) and religious bodies in a bid to persuade them to subscribe to the micro pension plan”, he explained.
Meanwhile, recent reports have it that Nigeria’s total pension assets as at October 2018 stands at at N8.45 trillion, and it is expected to grow exponentially with the new initiative, when it eventually becomes operational.
However, the Head, Corporate Communications, PenCom, Mr. Peter Aghahowa, described the micro pension initiative as very flexible plan designed to make it easy for people to join, while the method of contribution is decided by the contributors, who would choose whether to contribute daily, weekly, monthly, quarterly, and so on.
He added that the minimum age of eligible participants is 16 years, pointing out that PenCom as the regulator, was working closely with other operators on the I.T infrastructure to ensure smooth operations of the initiative. However, the Acting Director-General, PenCom, Mrs. Aisha Dahir-Umar, has described the planned initiative as a springboard to better living standard for Nigerians within the informal sector bracket when they retire.
She added that it would also reduce their dependence on extended family members for support at retirement.
She further noted that the Plan would capture self-employed people, especially, those with irregular income, usually in the informal sector and are largely financially uninformed or with limited or no access to financial services, especially a pension plan.
Section 2(3) of the Pension Reform Act, 2014 legal framework extends the coverage of the Contributory Pension Scheme (CPS) to self-employed persons through micro pension scheme.
For his part, the Head, Research & Corporate Strategy, PenCom, Dr. Farouk Aminu, said at a recent forum, that the Commission was working on ensuring that the plan commenced as intended, describing it as one that would enhance the growth of pension assets in the country.
