PenCom DG: Policy Choices Driving Gains in Pension Sector

BY NKECHI NAECHE-ESEZOBOR—National Pension Commission (PenCom) has attributed the success story recorded by the industry in the past 26 months to the administration of President Bola  Ahmed Tinubu.

The Director-General, PenCom, Omolola Oloworaran, disclosed this yesterday during a press briefing in Lagos following the Fourth Meeting of the Pension Industry Leadership Council (PILC), that the government has steadily cleared all outstanding accrued rights arrears to the point that contributions are now running ahead of schedule.

“This government has slashed a pension arrears backlog that once stretched back 41 months, while laying groundwork for a new long-term strategy dubbed “Pensions 2030.”

She said that the arrears crisis predated the current administration but has been steadily cleared, to the point that contributions are now running ahead of schedule.

Asked for the “secret,” she said”he secret is simple: elections have consequences. When you elect someone who puts the interests of Nigeria and Nigerians at the forefront of their agenda, this is what you get. And elections lead to appointments — those, too, have consequences.

“I’m glad we have a president who has consistently put pensions at the top of the agenda. I’m not saying this because he’s my boss — I’m saying it because it’s the truth. I’ve asked colleagues at PenCom who were here before me whether they’ve seen anyone do this much for the industry since the scheme began, and frankly, the answer is no. This administration continues to put ordinary Nigerians — pensioners and contributors — at the forefront of everything.

You mentioned we were paying arrears — yes. When I gave my address in July, we were 41 months in arrears, and government funding is still being released, so it may now be more than that. But as of July, at 41 months, anyone retiring between now and the next three and a half years is already covered.

People raised concerns before, but the truth is we didn’t need to push too hard — the government renewed its agenda and made social security and pension penetration a priority, in cooperation with the president’s vision. Ultimately, it’s the person at the top of the ticket — the president — who has made this happen. That said, I’m not taking anything away from our own efforts; we’re doing a great deal of work right now, all driven by the president’s agenda. With strong leadership at the top, you achieve more than expected.

I’m genuinely pleased with what we’ve done on accrued rights and other payments retirees are now enjoying across the board. All retirees who left service before July 2024 are receiving 32,000 naira every month, and government has kept up these payments. We held a press conference at the State House in July to lay out everything we’d done, so I won’t repeat it all here — but this administration is doing everything it can for Nigerians, particularly the elderly and vulnerable: pensioners and contributors alike.

It’s worth talking about this, because if we don’t, there’s a risk people won’t appreciate what’s being done. We’ve covered accrued rights and the 32,000 naira consequential adjustment. We’ve also reintroduced gratuity payments, and the first set has already been paid to eligible retirees across government. Real people, real impact.

Take NSITF, for example — people were on 18,000 naira for years, and then were moved overnight to 206,000 naira. It looks like magic, but it reflects the work being done.

On pension increases — where do I even start? Almost 20 years of obligations that previous administrations overlooked have been cleared under this one. Administrations come and go and often leave such obligations unresolved. This president made it a priority, and it remains one, because he understands the real consequences of how Nigerians retire.

Looking ahead, she disclosed that minimum pension enhancement expected to take effect the following in October and health insurance improvements for retirees.

On Pensions 2030, she confirmed that is still in its conceptual stage, while assuring that engagement  is still ongoing in the industry and regulators, with a strategy session planned for December and a finalized, documented agenda expected by December or January.