The National Pension Commission (PenCom) has initiated a review of investment regulations for pension funds to diversify into inflation-protected instruments, alternative assets, and foreign-currency denominated investments. This move aims to safeguard contributors’ savings against economic volatility, according to PenCom Director General Omolola Oloworaran.
Speaking at the 2024 PenCom Media Conference in Abuja, Oloworaran highlighted the impact of high inflation, naira devaluation, and unorthodox monetary policies on the real value of pension funds and contributors’ purchasing power. As of October 2024, the Contributory Pension Scheme (CPS) had 10.53 million registered contributors and pension fund assets worth N21.92 trillion.
“These numbers reflect our unwavering commitment to fund safety, prudent management, and sustainable growth,” Oloworaran said. She noted that the economic challenges of 2024 and previous years demand innovative solutions to ensure the resilience of the pension sector.
Themed “Tech-Driven Transformation: Shaping the Pension Landscape,” the conference emphasized PenCom’s efforts to improve transparency, efficiency, and service delivery through technology. The revamped Micro Pension Plan, designed to expand pension coverage, leverages technology to encourage informal sector participation, aligning with PenCom’s vision of inclusive growth and financial security.
Addressing delays in retirement benefit payments, Oloworaran disclosed that N44 billion from the 2024 budget was recently allocated to settle accrued pension rights for retirees between March and September 2023. She assured that PenCom is working with the federal government to institutionalize sustainable solutions for prompt retirement benefits.
“Our goal is to shape a future where the CPS becomes more accessible, reliable, and sustainable for all Nigerians,” Oloworaran concluded.
