The Nigeria Employers’ Consultative Association has commended the Federal Government for the inauguration of the Governing Board of the National Pension Commission, describing the development as a critical step toward strengthening governance, transparency, and accountability in Nigeria’s pension industry.

The Director-General of NECA, Mr Adewale-Smatt Oyerinde, in a statement issued in Geneva, Switzerland, on Tuesday, noted that the inauguration comes after a prolonged delay, which had raised concerns among employers and stakeholders regarding the oversight of pension assets and the overall integrity of the Contributory Pension Scheme.

According to NECA, the constitution of the PenCom Board is both timely and commendable. “It addresses a significant governance gap and reinforces confidence in the management of pension funds, now valued at over N28 trillion, which represent the retirement security of millions of Nigerian workers,” NECA said.

NECA particularly applauded the Federal Government, under the leadership of President Bola Tinubu, for taking decisive action to restore the statutory governance structure of PenCom in line with the provisions of the Pension Reform Act 2014.

NECA also aligned with the position of the Secretary to the Government of the Federation, Senator George Akume, who charged the Board to uphold the highest standards of corporate governance, ensure strict oversight, and avoid interference in the day-to-day operations of management.

The association emphasised that a clear separation between governance and management is essential for institutional effectiveness, noting that “strong oversight, without operational interference, is fundamental to sustaining accountability and safeguarding contributors’ funds.”

While welcoming the development, NECA urged the newly inaugurated board to prioritise transparency, robust risk management, and strict adherence to global best practices.

The association stressed that maintaining employer and public confidence in the pension system is critical to the continued success and sustainability of the CPS.

“The business community remains committed to fulfilling its statutory obligations under the CPS. However, this commitment must be matched with strong governance frameworks that guarantee the safety, security, and efficient management of pension contributions,” NECA added.

NECA further expressed optimism that the collaboration between the board, led by its Chairman, Dr Opeyemi Agbaje, and the management of PenCom under its Director-General, Ms Omolola Oloworaran, will usher in a new era of strengthened institutional performance and improved service delivery to contributors and retirees.

The association reaffirmed its readiness to continue engaging with relevant stakeholders to promote policies and initiatives that enhance the efficiency, transparency, and sustainability of Nigeria’s pension system.

The Federal Government’s inauguration of the board of PenCom marks a significant development in Nigeria’s pension administration, coming after a prolonged period without a governing board.

The previous PenCom board was dissolved in 2023 as part of a broader decision by the outgoing administration to dissolve boards of federal agencies.