PenCom, NLC chart new path for pension reform amid calls for improved governance
The National Pension Commission (PenCom) and the Nigeria Labour Congress (NLC) have vowed to firm up collaboration on pension reforms and improve transparency in Nigeria’s N26 trillion pension industry as the duo looks to strengthen trust and governance.
At a roundtable in Abuja on Thursday, PenCom’s director-general, Omolola Oloworaran, avowed that the engagement marked the start of more structured relations between the regulator and organised labour.
She described the talks as part of an ongoing push to sustain dialogue on policy implementation and protect workers’ retirement savings as well.
“Despite its challenges, the Contributory Pension Scheme has restored confidence in the dignity of labour by ensuring that the sweat of every Nigerian worker translates into retirement security,” Ms Oloworaran said.
“Millions of Nigerians today can look forward to retirement with peace of mind, knowing their savings are safe and well managed.”
The event explored reforms under a new stage of regulatory overhaul that is targeted at expanding coverage, strengthening supervision and improving service delivery.
She highlighted the place of labour as a key ally as the agency moves into the full enforcement stage, noting that the nation’s workforce plays a big role in helping PenCom achieve its goals and objectives.
According to her, the Pension Reform Act 2014 is under review at PenCom, with the results expected to reflect current realities. The assessment will incorporate contributions from the NLC and other stakeholders before the amendments are submitted to the National Assembly.
PenCom has renamed the micro-pension framework as the Personal Pension Plan to attract more self-employed and informal sector workers to the scheme.
Backed by accredited pension agents, the initiative expects to make participation more extensive and generate new employment opportunities nationwide.
The regulator has reviewed its rules to give pension fund administrators (PFAs) room to unlock more pension assets for investment in infrastructure and gold, per global practices.
READ ALSO: Tinubu appoints AbdulRazaq head of Renewed Hope Ward Development Programme Committee
The PenCom chief stated that the capital requirements for PFAs have increased to ensure they remain robust and resilient.
“We want PFAs to begin to invest in the real economy because the best hedge against inflation is investment in real assets.
NLC president, Joe Ajaero, raised concerns over governance gaps and a perennial lack of a fully constituted PenCom board, which he said has adverse implications for oversight and decision-making.
“Congress is deeply concerned about the continued non-inauguration of the full board of the National Pension Commission while the chairman is in place,” he said.
“The absence of a fully constituted board hampers strategic oversight, delays critical decisions and undermines proper governance of such a critical institution,” Mr Ajaero added.