The National Pension Commission, PenCom, said a number of measures have been adopted in the pension industry to improve service delivery.

From left: Secretary/Legal Adviser, National Pension Commission (PenCom), Muhammad Sanni Muhammad; Chairman, Pension Operators Association of Nigeria (PenOp) and Managing Director, Legacy Pension Managers Limited, Misbahu Yola and Managing Director, First Pension Custodian Limited, Kunle Jinadu, at the 8th annual Business Law Conference, in Lagos.

Acting Director General of PenCom, Chinelo Anohu-Amazu, made the assertion at the 8thannual business law conference in Lagos while delivering a paper titled “Contributory pension scheme as a catalyst for economic development,” in Lagos last week.

Anohu-Amazu, who was represented by the Secretary/Legal Adviser, PenCom, Mr. Muhammad Sanni Muhammad said that part of the measures on the part of PenCom is the establishment of zonal offices in the six geopolitical zones of the country to among others attend to complaints, enquiries and the provision of other customer services to all stakeholders as well as the establishment of contact centre to centralize, track and resolve stakeholder complaints.

On the part of Pension Fund Administrators (PFAs), Anohu-Amazu said that the measures adopted include Know Your Customer (KYC) techniques for proper monitoring of client needs and client feedback mechanism.
The PFAs also adopted the development of follow-up models for settlement of outstanding client issues as well as establishment of contact centres, she said.

According to the Acting DG, pension assets have grown to N4.13 trillion while the proportion of the assets to Nigeria’s GDP grew from 1.4% in 2006 to 9.5% in 2013, which represents an average yearly growth of 30%.
She said that the most significant proportion, about 63% of the assets (equivalent to N2.64 trillion) was invested in FGN securities and the asset invested in authorized markets with portfolio limits.

On the role of pensions in an emerging economy, Anohu-Amazu said that it provides social security by alleviating old age poverty; ensures that every pensioner receives pension as and when due; stems further growth of pension liabilities; fully funded towards future pension obligations as well as curtailment of the burgeoning pension liabilities of federal and state governments.

She said that the Contributory Pension Scheme, CPS, supports economic development; is an efficient avenue for infrastructure and economic development; as well as provides availability of investible funds to support the development of the real sector.

According to her, the CPS stimulates job creation through employment generation both directly and through third party service providers to the pension industry.
She said that the number of registered contributors  is  over 5,980,415 as at February 2014 even as there are 95,840 retirees currently receiving pensions as and when due under the CPS as at March 2014.

“Total pension fund assets had grown to over N4.13 trillion as at March 2014. Nigerian CPS has become a model for other African countries: Study visitations from Ghana, Malawi, Uganda, Tanzania,” she said.

On the outlook and next steps for the pension industry, Anohu-Amazu said that to enhance supervisory powers of the Commission; expand coverage of the CPS; create enabling environment for investment in the real sector are the focus of the PenCom.

“Repositioning the Nigerian Pension industry for the next decade, building capacity in the industry and engaging the services of skilled and experienced financial advisers for deal structuring, sustained support for initiatives to provide affordable housing and infrastructure development, deploying strategies for increased compliance by employers, participation by the informal sector and adoption of the CPS by states & local governments, are also the focus of PenCom,” she said.