The National Pension Commission (PenCom) is working with the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance on mechanisms that will allow pension investments in naira and generate returns in dollars, as part of efforts to safeguard retirement funds.
Its Director-General, Ms. Omolola Oloworaran, disclosed this during a courtesy visit to the TUC President, Comrade (Engr.) Festus Osifo, in Abuja.
She also said that PenCom would soon introduce a minimum pension for all retirees under the CPS to guarantee a more dignified retirement for Nigerians.
This 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 said.
She reaffirmed the Commission’s commitment to strengthening collaboration with the Trade Union Congress of Nigeria (TUC) in promoting pension reforms and ensuring greater compliance with the Contributory Pension Scheme (CPS).
She acknowledged the invaluable role of the TUC as a member of the PenCom Governing Board.
She emphasized that the relationship between the two organisations remained crucial to the sustainability of the CPS in Nigeria.
She advocated the need for more structured stakeholder engagements between PenCom and TUC to further strengthen the CPS and ensure greater compliance by employers of labour across the country.
According to her, every employer of labour is obligated under the Pension Reform Act (PRA) 2014 to remit pension contributions on behalf of employees.
She sought TUC’s support in enforcing compliance, noting that timely remittances were essential for securing workers’ financial stability in retirement.
She also spoke on the reforms underway to address value erosion in pension savings,adding that PenCom is working to mitigate the impact of inflation on pension assets.
She disclosed that PenCom will unveil a revised Investment Regulation to expand opportunities in alternative investments and deliver better real returns.
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.
He 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.
