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By Henry Uche
Following recent reforms by the National Pension Commission (PenCom) to give Nigerians a better retirement phase of life, Stanbic IBTC Pension Managers Limited, a subsidiary of Stanbic IBTC Holdings PLC, has reaffirmed its support aimed at enhancing flexibility, inclusion, and global access within Nigeria’s pension system.
The Pension Fund Administrator made this known at a media parley held in Lagos to create awareness about the reforms introduced by the National Pension Commission in September during its Pension Revolution 2.0 launch.
A new regulatory guidelines introduced two distinct pension options: the Personal Pension Plan (PPP) and Foreign Currency (FCY) Pension Contributions, both designed to empower individuals across board to save for retirement in ways that reflect their evolving work patterns and income sources.
The Personal Pension Plan (PPP), formerly known as the Micro Pension Plan, allows self-employed individuals, and informal sector workers to build retirement savings at their own pace. It also enables 9-5 employees in the formal sector to make additional voluntary contributions beyond the mandatory scheme.
But with the PPP, participants can contribute as they earn, make partial withdrawals (50%) after three months of initial deposit when needed, and enjoy flexible investment options suited to their financial goals. Here contributions are tax-free after five years, and participants can choose between conservative and growth investment funds for better control of their savings.
Complementing this is the Foreign Currency (FCY) Pension Contributions framework, which enables Nigerians earning in foreign currency, both those living abroad and those residing in Nigeria, to make pension contributions in United States Dollars (USD).
This structure allows contributors to safeguard their savings against currency depreciation and access a wider range of global investment opportunities such as Eurobonds, Global Depository Notes, and Exchange Traded Funds. Withdrawals can be made after six months from the contingent portion of the account, while long-term balances are preserved for retirement. Benefits are payable in USD or converted to Naira at the contributor’s request.
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Speaking on the development, Olumide Oyetan, Chief Executive, Stanbic IBTC Pension Managers, commended PenCom’s forward-thinking approach to broadening participation and accessibility in the pension industry.
He said, “These enhancements reflect the evolution of Nigeria’s workforce and the increasing global mobility of Nigerians. Stanbic IBTC Pension Managers will continue to help individuals, whether self-employed, salaried, or earning in foreign currency, take full advantage of these opportunities through expert guidance, transparent processes, and a seamless digital experience.
Olumide added, “The company’s focus is on promoting financial inclusion, trust, and lifelong retirement planning, ensuring that more Nigerians can participate in the pension system regardless of where or how they earn. Nigerians including the carpenter, welder, and other self -employed individuals can be rest assured that with us, the pension fund and better retirement is secured” he assured.
With over two decades of leadership in the pension industry, Stanbic IBTC Pension Managers continues to align its service offerings with PenCom’s vision for a more inclusive, technology-driven, and globally competitive pension landscape.
The Executive Director, Business Development Directorate, Nike Bajomo, she noted that the PFA had played a big role in the micro pension space and was ready to keep the ball rolling.
She revealed that the Company has invested in a micro pension and has 51 per cent of the contributions industry-wide. “We are one PFA that has invested in that space. Indeed, it’s very, extremely expensive, but as you listened to Olumide earlier, we have, in the Nigerian space, about 70 million workers who are 18 and above, and we have hardly got to 11 million throughout the industry. So, we note that space; whoever cracks that is going to make a difference in the industry,” Bajomo maintained.
The Executive Director, Investment, Efe Omoduemuke, explained that the foreign currency pension plan is a completion of the pension framework in Nigeria, given its robustness to cater for every class of Nigerian worker.
“The retirement savings investment plan cannot be complete without this framework; it’s like saying, ‘You walk into a supermarket or an open market, and they tell you, you can only buy from stores on the right, and you can’t go to the left. Before this framework, we were highly restrictive, and we could not take full advantage of investment opportunities that are out there.”
On how contributors can access their funds under the new regulations, the Executive Director, Operations, Lara Osunsoko, added, “If you put money somewhere, you want to know if it would grow, and then how you can withdraw part of it. Yes, contributors can access up to 60 per cent of the accumulated contributions after a minimum period of six months. If you remember, for a personal pension plan, it’s three months, but this is an accumulated contribution for six months, and then withdrawals are allowed twice a year. At retirement, which is 50 upwards, you can decide either to collect your benefit in dollars or to collect it in naira. So, two options: an accumulated contribution minimum of six months, and withdrawal twice a year on the contingent portion.”
