The reform being considered for the Contributory Pension Scheme( CPS ) is one that will shield pension assets from inflationary impacts. In addition, it will address other areas of concerns such as investment regulation with a view to expand opportunities in alternative investments and deliver better real returns.
Director General, National Pension Commission,( Pencom) Ms. Omolola Oloworaran who confirmed the update on Wednesday in Abuja, further disclosed that the commission is collaborating with the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance on mechanisms that will allow pension investments in naira but generate returns in dollars, as part of efforts to safeguard retirement funds.
She said that PenCom would soon introduce a minimum pension for all retirees under the CPS to guarantee a more dignified retirement for Nigerians.
This she adds , is being enabled by President Tinubu’s approval of a N758 billion bond, which comprises funding for the Pension Protection Fund (PPF), which would fund the minimum pension guarantee. She spoke of expected comprehensive reform of the pension scheme during a courtesy visit to the Trade Union Congress ( TUC) Comrade Festus Osifo.
She was accompanied by the Acting Commissioner, Technical, Hon. Hafiz Kawu Ibrahim, and other top management staff of the Commission. She emphasised that every employer of labour is obligated under the Pension Reform Act (PRA) 2014 to remit pension contributions on behalf of employees.
She called for TUC’s support in enforcing compliance, noting that timely remittances were essential for securing workers’ financial stability in retirement.
PenCom recently launched Pension Revolution 2.0 – Stronger Pensions, Stronger Nigeria, a bold reform initiative aimed at repositioning Nigeria’s pension industry for inclusive growth, resilience, and long-term sustainability.
The initiative builds on the landmark Pension Reform Act of 2004, which introduced the Contributory Pension Scheme (CPS) and laid the foundation for a more disciplined and sustainable retirement savings system.
Pencom DG acknowledged the invaluable role of the TUC as a member of the PenCom Governing Board and stressed that the relationship between the two organisations remained crucial to the sustainability of the CPS in Nigeria. She proposed more structured stakeholder engagements between PenCom and TUC to further strengthen the CPS and ensure greater compliance by employers of labour across the country.
Responding, Comrade Osifo commended PenCom for its professionalism and effectiveness, describing it as one of the highly performing Institutions in Nigeria. He recounted his experience with PenCom staff during his time in the pension industry, praising their exceptional integrity, competence and dedication.
The TUC president pledged the union’s continued support for the Commission, particularly in promoting compliance among employers. He decried the practice of some employers who deduct workers’ pension contributions but fail to remit them, warning that such delays harm the eventual returns on retirement savings and often lead to industrial disputes. Comrade Osifo further called for a review of the PRA 2014 to introduce greater flexibility in pension fund investments to better protect savings from inflation and exchange rate pressures.
