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By Henry Uche [email protected]
A National Pension Commission (PenCom) has read what appears to be a riot act to defiant employers of labour who treat pension compliance as optional rather than mandatory.
It has asked them to sit up or be visited with the full weight of the law.
The Director-General of PenCom, Ms. Omolola Oloworaran gave the warning recently at its first quarterly Pension Industry Leadership Council (PILC) meeting in Lagos, where she reminded recalcitrant employers that the Commission has an existing Memorandum of Understanding with the Independent Corrupt Practices and Other Related Offences Commission (ICPC), adding that both agencies will aggressively pursue organisations that fail to meet obligations under the Contributory Pension Scheme (CPS).
She stressed that public accountability will be central to enforcement.
“Remember we signed a MoU with the ICPC and we are not relenting. Naming and shaming is not just an option, but a necessity, we will start that. So, it’s either you comply or you face the consequences. Our goal is to give every Nigerian a living wage they deserve. Our engagement with State governors will continue, because everyone must be carried along, we are here for Nigerians,” she said.
To translate policy into measurable outcomes, the regulator has constituted multiple high-level committees, including those on investment and financial markets, innovation, risk and sustainability, policy and industry development stakeholder engagement, as well as governance and ethics.
Expressing confidence in their capacity, she noted: “The different committees have been given charges. I believe with them on board, we are heading in the right direction for the Nigerian people.”
She also revealed that a proposed Nigerian Pension Industry Investment Consortium is under consideration, with the investment committee tasked to evaluate its structure. The initiative is designed to mobilise pension funds for large-scale national development projects.
“It is critical to channel pension capital into infrastructure and also important to create bankable investment pipelines and support national development whilst preserving returns,” she added.
On digital transformation, she highlighted the role of the innovation, risk and sustainability committee.
“Through the innovation, risk and sustainable committee, we will drive digital transformation. This is very key for our industry. We will strengthen cybersecurity and data protection. We will develop an industry-wide risk framework. We already have one, but we will do updates on that as risk continues to emerge.”
She further outlined the policy direction: “Through the policy strategy and industry development committee, we will develop a new medium-term industry strategy. We will drive policy harmonization and strengthen research benchmarking and performance tracking across board.
“Building trust and boosting compliance will be driven through stakeholder engagement. “And through the stakeholder engagement and advocacy committee, we will deepen public trust in the pension system, expand pension literacy and drive compliance and participation. And most importantly, ensure transparent, consistent communication across the industry”, she noted.
On inclusion, she highlighted a renewed push to expand coverage among underserved segments.
“We shall continue to drive inclusion aggressively through the personal pension plan. We have commenced a national rollout. So, we see the informal sector participation inching up. We expect the growth this year to be more than all the growth that we’ve seen since 2017 when the PPP itself was instituted.”
In a nutshell, the National Pension Commission (PenCom) reiterated its push for stronger institutional alignment, firmer leadership direction and verifiable outcomes, describing its current reform agenda as a deliberate shift toward accountability, transparency and results-based governance across Nigeria’s pension system.
The renewed posture reflects rising expectations within the financial and labour ecosystem for a pension framework that is not only well-regulated but also demonstrably efficient in delivering value to retirees and contributors.
PenCom’s approach is fuelled by a belief that sustainable reform must go beyond policy pronouncements to measurable improvements in welfare outcomes, investment performance, and system-wide trust.
The Commission has emphasised that its next phase of reform will be anchored on deeper collaboration with operators, enhanced regulatory coordination, and policy innovation aimed at strengthening both protection of pension assets and broader economic contribution.
The objective, according to its leadership, is to ensure that the pension system evolves into a more dynamic engine of inclusion, capital formation, and long-term national development.
The renewed direction is unfolding alongside significant institutional developments at the federal level.
Recently, the Federal Government under President Bola Tinubu inaugurated the PenCom Board after a prolonged absence, tasking members with enforcing robust corporate governance standards and safeguarding pension assets now valued at N29.43 trillion. The portfolio recorded a notable N1.39 trillion month-on-month increase in February, marking one of the strongest growth performances since the inception of the Contributory Pension Scheme over two decades ago.
The Board inauguration was quickly followed by the first quarterly Pension Industry Leadership Council (PILC) meeting in Lagos, which brought together Managing Directors of Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs). The session was designed as a strategic forum for dialogue, coordination, and idea exchange aimed at strengthening industry performance and unlocking new pathways for growth.
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Speaking to journalists after the engagement, the Director-General of PenCom, who also chairs the Council, highlighted the urgency of moving from intent to implementation.
She stressed that the Commission’s commitments were not symbolic, but binding obligations that stakeholders and citizens alike should expect to see fulfilled in practical terms.
“We need to talk about the additional exit benefit for federal government workers. So a grant treaty has been put in place for federal government workers. I’m proud we worked with the head of service and other government agencies to bring this to life,” she said.
She further highlighted recent improvements in pension payouts under the Nigeria Social Insurance Trust Fund (NSITF), noting that retirees have already begun to experience enhanced benefits.
“We also saw earlier this year an upwards review of NSITF pensions and that resulted in significant increases across the board. I’m sure people haven’t heard of that before in terms of monthly pension payout.”
According to her, these developments point to a broader transformation in the role of pensions within the economy. Rather than functioning solely as a savings mechanism, the system is increasingly being positioned as a driver of economic stability and growth. “And this represents real tangible improvements in retirement outcomes. The pension industry is no longer just safeguarding funds. It’s about driving economic growth because the returns on pension assets depend on the success and growth of the economy.”
She added that PenCom intends to take a more active stance in shaping financial markets, expanding investment opportunities, and improving returns for contributors. “We will start taking active parts in strengthening markets and we will begin to even take our commitment to retirees and contributors alike further to deepen investment, to optimize returns and ensure that this dignity in retirement we keep talking about is not just a talk show but real impacts in people’s lives.”
To support this ambition, PenCom has constituted several specialised committees covering investment and financial markets, innovation and sustainability, policy and industry development, stakeholder engagement, as well as governance and ethics.
These committees are expected to serve as the operational backbone for implementing the Commission’s reform agenda.
“Through this Council and the committees, we will ensure that the industry is more coordinated, more influential, and more accountable. This is essentially taking the pension industry to the next frontier of growth and we are working in alignment with the whole industry with the MDs of PFAs and PFCs and what you should expect from us is alignment leadership with courage and greater impact for the Nigerian people at large,” she said.
She further explained that the committees will play a critical role in addressing structural bottlenecks within the system, particularly in relation to market liquidity, investment diversification, and long-term capital deployment.
“Through all of these committees, we will work to drive market discipline and improve investment. We will address market liquidity constraints through advocacy and engagement across board.
“We intend to expand investment outlets beyond traditional instruments and also develop alternative assets and new structures that can help to optimize returns on pension funds.”
Central to the strategy is a push to unlock infrastructure financing and strengthen the link between pension assets and national development priorities.
“The objective is clear ‘to build a market that works efficiently for the long term for all pension fund contributors’. We also realize that it’s important to unlock infrastructure potential,” she added.
The Pension Industry Leadership Council itself has been positioned as a permanent multi-stakeholder advisory structure designed to harmonise perspectives across regulators, operators, and policymakers. It provides a structured platform for quarterly engagement, allowing stakeholders to align policy direction with operational realities while reinforcing industry-wide coordination.
In practical terms, the Council is expected to improve policy coherence, accelerate innovation, and strengthen the sustainability of the pension system by ensuring continuous dialogue between key actors.
For many contributors, however, the focus remains on whether these reforms will translate into visible improvements in retirement security. A contributor, Benson Ikwe, noted that expectations are rising alongside the Commission’s promises. “With the fusion of these committees and the Board, contributors and retirees alike expect not just what the helmsman at PenCom has promised, but they hope to see glaring signs of a future assured in the short run as days run into weeks, and weeks into months. “These immediate signs of brighter tomorrow guarantee peace of mind today, reduce high blood pressure, and boost employees’ morale to give their best to their employers whether in the public or private sector.”
The Commission has consistently reiterated its commitment to working in close synergy with the newly inaugurated Board, describing the relationship as central to delivering its mandate. It has also assured that every policy decision will ultimately be assessed based on its impact on contributors and retirees.
Looking ahead, one of the most ambitious proposals under consideration is the creation of a Nigerian Pension Industry Investment Consortium, designed to channel pension funds into strategic national and government-led infrastructure projects. The initiative, alongside the already significant N4 trillion exposure to equities, signals a more active role for pension assets in shaping Nigeria’s development trajectory.
However, the proposal has also raised concerns among stakeholders who caution that increased exposure to complex investments must be matched with strong risk management frameworks, particularly in a macroeconomic environment characterised by volatility and uncertainty.
Despite these concerns, PenCom’s leadership maintains that the direction of reform is both necessary and irreversible. The focus, it insists, is on building a pension system that is not only secure but also growth-oriented, inclusive, and capable of delivering dignity in retirement.
Ultimately, the success of these reforms will depend on execution, how effectively institutions coordinate, how transparently policies are implemented, and how quickly tangible benefits reach the millions of Nigerians whose livelihoods depend on the system.
