Operators in the pension industry say the recent ousting of the director-general of the National Pension Commission (PenCom) and three executive commissioners of the regulatory body, ahead of the expiration of their appointment tenures will not threaten the stability of the pension industry.
The operators further say the over N6.8 trillion in asset industry is institutionalised and will live beyond the tenures and personalities of the regulatory authority and the operating institutions.
They however call for respect to be accorded the contract terms, in order to ensure stability and sustainability of institutions in the pension and other industries in Nigeria.
President Muhammadu Buhari had on April 13 sacked Chinelo Anohu-Amazu, the director-general of the National Pension Commission and three other executive commissioners in a large scale shake up that affected many other parastatals and agencies.
The President subsequently appointed Funso Doherty as chairman of PenCom and Dikko Aliyu Abdurrahman as director-general of the commission, alongside executive commissioners, including Akin Akinwale, Abubakar Zaki Magawata, Ben Oviosu and Nyerere Ayim.
While analysts say the president did not contravene the law in the removal of the DG and others, ahead of the expiration of their tenures, and replacing them with new appointees, as provided in the Pension Reform Act 2014, they say the president violated an aspect of the law on choice of appointee, based on geopolitical zone specifications in the document.
According to section 21(2) of the Act, in the event of a vacancy, the president shall appoint a replacement from the geo-political zone of the immediate past member that vacated office, to complete the remaining tenure.
Eguarekhide Longe, managing director/CEO, AIICO Pension Mangers Limited, says recent developments in PenCom have not posed any threat to the industry.
“The pension industry is institutionalised, so there is no cause for alarm.”
Longe who is also chairman of the Pension Fund Operators Association of Nigeria(PenOp) says the personality of the regulators or the operators does not affect the smooth running of the scheme because structures have been put in place right from inception.
He however observes that though it is the prerogative of government to make appointments, remove or put whosoever they like, “I believe the contract terms are better respected”.
Misbahu Yola, managing director, Legacy Pensions Managers Limited, who says he is yet to get a proper understanding of the developments, adds that, “From what I have read in the news media, I think there is no cause for alarm, given the structure in place.
“Everything is fine with the industry”. For the appointment, it’s governments decision because we don’t have input in who regulates the industry.”
Another CEO of a Pension Fund Administrator (PFA) who does not want to be named, says the development was politically motivated.
“Some people around the president are taking advantage of his ill health to get whatever they can get at this time, before his tenure runs out.
“Don’t forget that the woman was appointed by the former president and a different political party, so the ruling party today is making efforts to take over what is left in terms of appointments”.
I think they found the former DG capable, otherwise, they would have removed her long ago, the source stated.
Emeka Onuora, head, Communications PenCom, says Aisha Dahir-Umar has been appointed the acting DG to steer the activities of the commission, pending the confirmation of the appointments of the new Executive Management of the commission by the Senate.
Onuora assures the public, especially registered members of the Contributory Pension Scheme (CPS) and retirees, that the cardinal principle of PenCom is the safeguarding of their pension assets and ensuring that retirees are paid their benefits as and when due.
He further stresses that these objectives shall continue to be pursued with the deserving commitment and dedication.
Emeka maintains that as part of the established institutional framework, pension assets under the CPS are held in-trust by licensed Pension Fund Custodians (PFCs) on behalf of contributors, adding that thus, neither PenCom nor Pension Fund Administrators (PFAs) have access to the assets.
He further noted that the commission remains totally dedicated to the safeguard of the pension assets and upliftment of the entire pension industry in Nigeria.
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