Pension Commission of Nigeria faces the challenge of weathering the storm created by those critical of its success story
Bumpy route lies ahead of Pension Commission of Nigeria, PenCom, amid challenge of sustaining the feat it achieved in reshaping the once unpopular pension system into a huge success story.
The turn-around, kick-started with the enactment of the Pension Reform Act 2004, has led to N5 trillion asset after 10 years, as against the N2 trillion deficit inherited under the old Defined Pension system.
However, the apex pension regulatory body appears set for a bumpy route ahead as all eyes seem to be on the N5 trillion Pension asset – from the threetiers of government to private sector operators who evidently harbour great misconceptions about the way the scheme is operated.
Consequently, the impression is being created that the N5 trillion Pension asset constitutes idle fund sitting in the vaults of the banks for the financial institutions to trade with at their whim and caprice. While most of the states are not enrolled with the CPS, they see PenCom fund as one that should be shared for their development.
The UNION findings showed that many states are yet to join the new CPS 10 years after it was introduced; the amendment to the Pension Act last year (2014) which provides for great-
•Continues on page 40
– Sam Diala