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By Henry Uche
Upon assuming office in July, the Director General of the National Pension Commission (PenCom), Ms. Omolola Bridget Oloworaran, faced significant challenges, including strengthening the pension scheme and increasing contributors to the pension net.
At the PenCom/Media Conference held in Lagos, the DG acknowledged the tasking nature of pension management but expressed optimism. “With the right people, environment, motivation, media, and other support, every stakeholder shall have cause to smile because no one will be left behind,” she said.
Themed “Tech-Driven Transformation: Shaping the Pension Landscape,” the event highlighted the pivotal role of technology in revolutionizing the sector. Oloworaran emphasized, “Technology has become the backbone of transformation across all sectors, and the pension industry is no exception; thus, PenCom has embraced this transformation wholeheartedly.”
She further revealed, “Today, we have over 10.5 million contributors and oversee pension assets exceeding N21.9 trillion as of October. This progress demonstrates the strength of our contributory pension system, but we are not without challenges. Inflation continues to erode the purchasing power of pensioners, and we are actively seeking innovative solutions to address this issue.”
Oloworaran highlighted the issue of delays in accrued rights payments. “Recently, N44 billion was approved under the 2024 budget appropriation to settle accrued pension rights for retirees from March to September 2023. Moving forward, we are working with the Federal Government to establish a sustainable solution that ensures retirees receive their benefits promptly and without undue stress,” she stated.
Since taking office, her administration has focused on strengthening compliance, enhancing service delivery, diversifying pension assets to optimize returns, improving benefits, and expanding coverage to include more Nigerians, especially those in the informal sector.
On the micro-pension initiative, Oloworaran expressed her passion for inclusivity. “No one should be left behind, no matter how small their earnings might be. Technology plays a vital role in driving this inclusion, from mobile enrollment to real-time account management to benefits administration. We intend to use technology to scale the micro-pension plan.”
She also emphasized ease of access to benefits. “This year, we achieved a major milestone with the launch of the e-Application Portal for Pension Clearance Certificates (PCC) in October. This initiative replaces the previous manual process, enabling companies to seamlessly apply for and receive PCCs online. Since its deployment, we have issued over 38,000 PCCs, significantly enhancing ease of doing business and ensuring compliance,” she noted.
Additionally, the Pension Industry Shared Service Initiative is in advanced stages, digitizing pension contributions and remittances to resolve discrepancies caused by incomplete remittance details. Oloworaran announced, “We have introduced a revised program withdrawal template, simplifying access to voluntary contributions and revising the threshold for en-bloc payments in line with the new minimum wage.”
She acknowledged the role of the media, stating, “You are not just storytellers; you are stakeholders in the success of our pension system. Your ability to inform, educate, and hold us accountable is invaluable. I urge you to continue asking the tough questions, highlighting areas that need improvement, and celebrating the wins when they come.”
On the agitation by groups like the Nigeria Police to exit the Contributory Pension Scheme (CPS), she cautioned, “Exiting is not the way forward because you don’t know who would manage your proposed pension scheme. The way to get a better scheme is not by leaving the CPS.”
The DG reiterated PenCom’s resolve to integrate technology across all aspects of the pension industry, including data management, seamless contributions, investment oversight, and regulatory supervision.
On the N44 billion recently disbursed for accrued rights payments, Oloworaran revealed that about 18,000 retirees remain unpaid. “We still have 18,000 Nigerians who haven’t received their accrued rights. Unfortunately, we don’t have sufficient funds to cover payments from September 2023 to date. But we are working on it,” she assured.
To mitigate economic challenges, including inflation and naira devaluation, PenCom is reviewing its investment regulations to diversify pension fund investments into inflation-protected instruments, alternative assets, and foreign currency-denominated investments.
In conclusion, she emphasised that with technology, inclusivity, and robust economic strategies, PenCom is paving the way for a resilient and efficient pension system. “Together, we can ensure every Nigerian, including the most vulnerable, has access to a secure and dignified retirement. Meanwhile, the Commission is working with the Federal Government to address accrued rights payments and put in place a sustainable solution,” she added.
