The National Pension Commission (PenCom) has reassured Nigerians that pension savings remain secure despite its recent decision to allow Pension Fund Administrators (PFAs) to invest in the parent companies of their pension custodians. The Commission said the policy was introduced only after a detailed review confirmed that the risks involved are very low and that strong measures are in place to protect contributors’ funds.
Speaking during the Meet the Press Briefing at the Presidential Villa in Abuja, PenCom Director-General, Omolola Oloworaran, explained that the Commission follows strict investment guidelines before approving where pension funds can be placed. She noted that PFAs are not free to invest in just any company. Instead, investments are limited to firms that have a solid financial record, consistent profitability, strong credit ratings and a proven history of good performance.
According to Oloworaran, PenCom regularly reviews its investment rules to keep pension assets safe. The Commission also carries out inspections, routine checks and compliance assessments to ensure that all PFAs follow approved risk management standards.
She added that every Pension Fund Administrator operates under the supervision of a board of directors, an investment committee and a risk management committee. These layers of oversight are designed to ensure transparency and prevent decisions that could put contributors’ savings at risk.
The PenCom boss explained that the new investment guideline allows PFAs to buy shares in the parent companies of their custodians because the Commission found that any possible conflict of interest was minimal. She said many of the affected institutions are among Nigeria’s leading commercial banks with strong financial positions and high credit ratings.
Using Stanbic IBTC as an example, Oloworaran explained that if Zenith Bank serves as the pension custodian, previous regulations stopped the administrator from investing in Zenith Bank shares even if the bank was performing well. Following a detailed assessment, PenCom concluded that allowing such investments would create more opportunities to grow pension funds without exposing contributors to unnecessary risks.
On reports that the Nigeria Police Force planned to leave the Contributory Pension Scheme (CPS), Oloworaran dismissed the claims, saying the police remain active participants in the scheme. She clarified that the real concern raised by the police is the level of retirement benefits they receive, which they believe should be improved to match those enjoyed by members of the armed forces.
She said PenCom understands the concerns of police officers and is already working with relevant government agencies to find ways of improving their retirement benefits. According to her, the Commission’s main goal is to ensure that retired officers receive better financial support after leaving active service.
Oloworaran also addressed complaints about delayed pension payments. She stated that retirees who submit all required documents receive their benefits without unnecessary delays. She encouraged anyone experiencing payment issues to report such cases directly to PenCom for immediate attention.
She further revealed that the Commission closely monitors complaints shared on social media and follows up on every verified case. To improve service delivery, PenCom is introducing a Customer Relationship Management (CRM) system that will make it easier for pension contributors and retirees to submit complaints and receive prompt assistance.
In addition, the Commission is expanding pension coverage to workers in Nigeria’s informal sector. Through digital registration and the licensing of Accredited Pension Agents, PenCom hopes to bring more self-employed workers and small business owners into the pension system. Oloworaran expressed confidence that the programme will begin producing significant results within the next two years.
She reaffirmed PenCom’s commitment to protecting pension funds, improving retirement benefits and ensuring that more Nigerians have access to reliable pension services in the future.
