He however gave credit to National Pension Commission (PenCom) for the “good work the commission is doing to grow pension in Nigeria.
Nigeria’s pension asset has grown to N4.3 trillion despite having only six million contributors to the contributory pension scheme.
This disclosure was made by the Chairman Pensions Operators Association of Nigeria (PenOp) Alhaji Musbahu Yola yesterday at a press conference to announce Nigeria’s hosting of the World Pension Summit in July.
Musbahu Yola stated that “a lot of work still needs to be done with Nigeria’s reform exercise even though there are 6 million contributors, N4.3 trillion pension assets or US$25 billion which translates to five per cent of our rebased GDP.”
Speaking at the event the Acting Director General PenCom, Mrs. Chinelo Anohu-Amazu noted that 6 million RSA accounts does not seem a lot “but looking back we need to move right not just fast.” PENCOM she said “is willing to take that time and enforce compliance.”
She assured that Nigeria’s pension scheme is fully funded and also expressed optimism that Nigeria’s pension problems will be solved in time to come.
According to her, “Pension is hope in retirement age and no longer a source of despair.”
She also revealed that the commission’s focus has shifted to the States by setting up zonal offices. She also noted that the commission has dangled the benefits of participating at the coming summit before the states and already “they are scrambling to pass pension laws in their states.”
Chinelo Anohu-Amazu stated that the World Pension Summit has been on for four years now but this is the first time it will hold in Africa with focus on Africa. 55 African countries she said will be in attendance, and participants will sit down to discuss the shape and future of pension on the continent.
One of the co-founders of the World Pension Summit Mr. Eric Eggink, said the growth potential is there in Africa and it is not for nothing that Nigeria is one of the best investment countries in Africa.” One of the reasons for selecting Nigeria to host the World Pension Summit he said is the country’s power “as the largest economy in Africa is an important contributor for selecting Nigeria, as the Summit is going to be inspiring.”
The other co-founder Mr. Henry Smorenberg said pension is about life but also about securing enough funds in old age.
According to him, quite a number of issues surround pension, like social security, financial literacy, prudent investment and risk returns will be discussed at the summit as well as proper governance that should be in place.