Expand micro-pension scheme, FG tasks pension council

The federal government has charged the Pension Industry Leadership Council (PILC) to expand micro pension plans, digital payment platforms and other initiatives to boost the Contributory Pension Scheme (CPS). Secretary to the Government of the Federation (SGF), Sen. George Akume gave the charge in Abuja on Thursday during the inauguration of the PILC Daily Trust […]

The federal government has charged the Pension Industry Leadership Council (PILC) to expand micro pension plans, digital payment platforms and other initiatives to boost the Contributory Pension Scheme (CPS).

Secretary to the Government of the Federation (SGF), Sen. George Akume gave the charge in Abuja on Thursday during the inauguration of the PILC

Daily Trust reports that the PILC will provide a strategic forum where PenCom and licensed pension operators can consult every quarter on policy and operational issues, aligning pension growth with national development goals. 

Members will adopt a governance charter and operational roadmap to institutionalise the council as a standing platform for collaboration. 

Speaking at the inauguration, Akume said, “The leadership of the industry must remain ready to evolve new methods of navigating them which include rising inflation that continues to erode retirement savings, inclusivity which suggests that large segments of the informal sector remain uncovered. 

“You must also evolve as problem solvers on the short, medium and long term basis. Having stated the foregioing, I will therefore remind you all of the Council’s institutional leadership roles and also suggest a few strategic objectives that urgently require institutionalisation along with their public value impacts.

“This can be done by Strengthening Trust through Accountability and Transparency by enforcing strict governance standards for Industry players and by ensuring regular public reporting of returns, compliance status, and investment portfolios. By so doing, the contributors gain higher confidence in knowing that their savings are secure, well-managed, and growing.

“The PILC must aim to expand the coverage to the Informal Sector by scaling up the Micro Pension Plan, designing incentives such as digital platforms, mobile payment integration, and tax reliefs to attract artisans, traders, and SMEs. By so doing, millions of Nigerians outside the formal wage system would be brought into retirement security, promoting equity, inclusion, and social stability.” he said

He added, “The PILC must lead the charge in mobilizing Pension Assets for National Development by strengthening the framework for safe, transparent investment of pension funds into infrastructure bonds, housing finance, renewable energy, and SMEs. This can be advanced through partnership with the CBN, Ministry of Finance, Infrastructure Concession bodies and the Sovereign Wealth Investment Authority.”

Director General of the National Pension Commission, Omolola Oloworaran noted that since the passage of the Pension Reform Act in 2004, the industry has mobilized long-term savings, restoring dignity to retirement and strengthening financial stability, but without challenges of coverage, adequacy, governance, and impact demand more than fragmented effort. 

Therefore, she said, “Beyond continuity, this Council is also about transformation by innovating in our products, re-engineering our processes, and modernising our systems to deliver pensions that are accessible, transparent, and truly inclusive.”

Oloworaran further noted that the Council’s mandate is “to Expand coverage, especially to informal-sector workers, ensuring no Nigerian is left behind. Enforce governance and compliance, upholding the highest fiduciary standards.”

 

N758 Billion bond on verge of issuance 

Responding to enquiries on the status of the N758 Billion pension bond, the DG disclosed that significant progress has been made with the bond expected to be issued in weeks.

“You know, there are a number of processes involved in issuing a bond. So significant progress has been made, the issuance of the N758 Billion bond has commenced.

“In fact, we have gone very far. Following the Federal Executive Council approval, the President sent his request to the National Assembly. The National Assembly has approved and therefore the Debt Management office is in the process of issuing the bond. In fact, they have gone very far. We are hopeful by the end of this month or the latest first week of October, we will start receiving the proceeds. And once that is done, then PENCOM is ready and good to go.”