By Victor AhiumaYoung

The National Pension Commission, PenCom, has said among others, the Contributory Pension Scheme, CPS, potential to transform the life of retirees is exciting.

This came as the commission gave given insight into why the commission will to invest pension funds in federal government securities, saying among others, “it is risk free, and government has never defaulted.”

PenCom Director General Ms Omolara Oloworaran, who spoke at the 2024 PenCom Media Conference, in Lagos, said “Every time I meet a pensioner who is able to live comfortably because of the contributions they made during their working years, it reminds me of why this work is so important.”

According to her,  ”To further enhance contributors’ experiences, we have introduced a revised programme withdrawal template, simplifying access to voluntary contributions and revising the threshold for en-bloc payments in line with the new minimum wage. These measures are designed to make retirement processes more efficient and user-centric.

 ”But beyond policies and systems, what really excites me is the potential to transform lives. Every time I meet a pensioner who is able to live comfortably because of the contributions they made during their working years, it reminds me of why this work is so important. And every time I hear from a young entrepreneur or artisan who has signed up for the micro-pension scheme, it strengthens my belief that we are moving in the right direction.

“As we integrate technology across every aspect of the pension industry—ranging from data and identity management to seamless contributions, investment oversight, regulatory supervision, and service delivery—we are paving the way for a future where the Contributory Pension Scheme, CPS, becomes more accessible, reliable, and sustainable. 

“However, this transformation cannot succeed without your unwavering support as media practitioners. Your role in amplifying our initiatives and educating stakeholders across Nigeria is essential to achieving this vision. Together, we can ensure that every Nigerian, including the most vulnerable, has access to a secure and dignified retirement.”

 She commended the media role in the growth of pension industry in Nigeria, saying “let me take a moment to acknowledge the role of the media in this journey. You are not just storytellers; you are stakeholders in the success of our pension system. Your ability to inform, educate, and hold us accountable is invaluable. So, I urge you to continue asking the tough questions, highlighting areas that need improvement, and, yes, celebrating the wins when they come.”

Answering question on the issues of federal government borrowing from pension fund, she explained that the 

returns on government securities at the moment tops any investment class, at least in Nigeria as at today.

According to her,  ”Globally, pension funds form a pool of capital for every nation. And both developed and developing nations like ours always invest in government treasuries or government bonds. So, there is nothing new that Nigeria is doing. What we are simply doing is investing in federal government securities, whether through treasury bills or bonds or any other instrument issued by government. 

“So, yes it is borrowing but it is an investment to us and the returns on government securities at the moment I believe tops any investment class, at least in Nigeria that I have seen.

The good thing is since we have been investing in government securities, government has never defaulted and we don’t expect that to happen at any time. 

“We do set a limit for the percentage that can be invested in government securities, because it is risk free. Government debt is supposed to be risk free, so that is where most of the investment in pension funds go. We will continue to invest in government securities. We will gradually reduce it to pay for investment in other asset classes, but we will continue to invest in government securities. Like I said, it is risk free, government has never defaulted.”