PenCom moves to deepen capital market investments, improve pension outcomes

The National Pension Commission (PenCom) is positioning Nigeria’s pension industry for a bigger role in financing long-term economic growth, unveiling plans to deepen institutional participation in the capital market while pursuing reforms aimed at improving retirement outcomes and expanding pension inclusion.

 

 

Speak at the third Pension Industry Leadership Council (PILC) meeting held in Abuja on Tuesday, Omolola Oloworaran, director-general of PenCom, said the commission and pension fund operators had agreed to strengthen engagement with capital market stakeholders, reflecting the growing importance of pension assets as a source of long-term domestic capital.

 

“The pension fund industry probably has the largest pool of passive long-term savings capital in the country. We need to become more engaged in terms of what is happening in the capital market,” Oloworaran said.

 

Her remarks underscore PenCom’s broader strategy of leveraging the industry’s expanding asset base to support productive investments while safeguarding contributors’ retirement savings through prudent regulation.

 

As part of that strategy, Oloworaran disclosed that the proposed pension industry infrastructure fund has reached an advanced stage of implementation.

 

According to her, a governance framework has already been developed and is being reviewed by pension fund administrators (PFAs), who are expected to consult their respective boards before taking final investment decisions within the next one to two months.

 

Read also: Umahi assures of quality, durable infrastructure to catalyse economic growth

 

The initiative is expected to provide a coordinated investment vehicle through which pension funds can finance commercially viable infrastructure projects without compromising the industry’s risk management standards.

 

PenCom also revealed it is working on a forward-looking liability-driven investment framework that aligns investment strategies more closely with the long-term obligations of pension funds. The framework is expected to enhance portfolio resilience and improve retirement income by matching assets with future liabilities, a model widely adopted by mature pension systems globally.

 

Beyond investment reforms, the commission said improving retirement outcomes remains central to its agenda.

Read also: PenCom flags slow uptake of personal pension plan despite informal sector push

 

“We continue to look at initiatives, both locally and globally, that can help us achieve our goals in terms of putting more money in the hands of ordinary Nigerians,” Oloworaran said.

 

To strengthen public confidence and broaden participation in the pension system, PenCom announced that Nigeria will host its first National Pension Week from September 15 to 19. The initiative is designed to improve pension literacy, increase awareness of retirement savings and bring together regulators, operators, employers, contributors and retirees to discuss the future of the industry.

 

The commission believes low awareness remains one of the biggest constraints to pension penetration, particularly within the informal sector where enrolment under the Micro Pension Plan has remained below expectations.

 

Oloworaran said PenCom is expanding engagement with market women associations, transport unions and other informal sector groups, while deploying accredited pension agents to drive enrolment across the country.

 

 

“On the personal pension plan, yes, I was hoping that we would get one million women on board, but we haven’t gotten close to that.

 

“The numbers are still very low, which is why I spoke about awareness and pension literacy. So as a council, we need to take the message out there to ordinary Nigerians more. But one thing we are doing is still working on partnerships.

 

“You know, a lot of work has to come in, has to go into some initiatives, mostly on initiatives. We have to do a lot of work before we start seeing the results. So I want to believe that that’s one million women.

 

“We’re targeting market women associations across the country, to see how they can bring their people on board. Telling them to find incentives under the personal pension plan, that will benefit anyone who contributes.

 

“Not only market women associations, we’re also looking at giving finance as well. In addition to that, I think we’re engaging the road transport providers also. So we’re engaging associations by association, and also working on how we can bring awareness and pension literacy to ordinary Nigerians,” she stated

 

 

On regulatory compliance, the commission said it is intensifying enforcement against employers that fail to remit pension contributions. PenCom already collaborates with the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and expects to formalise a similar partnership with the Economic and Financial Crimes Commission (EFCC) to strengthen compliance.

 

The commission also expressed concern over the slow pace of adoption of the Contributory Pension Scheme (CPS) by state governments.

 

 

Although Ogun and Katsina states are expected to join the scheme, Oloworaran described the progress as inadequate, warning that workers in states outside the CPS remain exposed to uncertainty over retirement benefits.

 

“We can only do a lot better until we reach all the states. Workers and retirees in states that are not under the scheme may be at risk of not receiving their retirement benefits as and when due,” she said.