…to drive personal pension plan, compliance
The National Pension Commission (PenCom) says it is focused on increasing the number of registered pension contributors from current 10.65 million to N20 million in the next two year.
According to the Commission, part of the strategies will be through the expansion of Personal Pension Plan (PPP) formerly known as Micro Pension Plan (MPP). Others are engagements with stakeholders, enforcement of pension compliance and issuance of certificates, especially by state governments amongst other initiatives.
Omolola Oloworaran, director general of PenCom, announcing this at the Pension Industry Leaders’ Retreat in Lagos said the commission plans to meet the target through the expansion of Personal Pension Plan (PPP) formerly known as MIcro Pension Plan (MPP), engagements with stakeholders, and enforcement of pension compliance certificates, especially by state governments amongst other initiatives.
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She noted that pension growth is essential for economic growth and development, pointing that the industry expects a 50 per cent growth in this regard and disclosed that as at February 28, 2025 the pension fund assets was N23.27 trillion and Retirement Savings Account (RSA) holders 10.65 million.
According to Oloworaran the retreat has provided opportunities for the industry to adopt new strategies, stating that the resolutions reached will be fully implemented before the end of first quarter 2026.
PenCom during a courtesy visit on the Lagos State Governor, Babajide Sanwo-Olu, urged him to extend periodic pension increases currently enjoyed by Defined Benefit Scheme (DBS) retirees to under the Contributory Pension Scheme (CPS) to boost their monthly pensions.
Omolola Oloworaran, said the visit was to present the report of PenCom’s 2024 routine inspection of the Lagos State Pension Commission (LASPEC) and to thank the Governor for confirming his participation as Special Guest at the Pension Industry Leadership Retreat held weekend.
PenCom DG pointed out that currently, only DBS retirees are paid pension increases in Lagos State, leaving out their counterparts under the CPS. She made a case for the prioritisation of retirees under the CPS given the contributory nature of the scheme.
Oloworaran lauded Lagos State as a leading model in the Federation for its effective implementation of the CPS. She highlighted key achievements, including consistent deduction and remittance of employee contributions to their Retirement Savings Accounts (RSAs), full settlement of all backlog of accrued pension rights, the existence of a valid Group Life Insurance Policy for most public service employees, and the deployment of advanced ICT systems to enhance pension administration in Lagos State.
Despite this progress, PenCom DG proposed a partnership with Lagos State to make the Pension Clearance Certificate (PCC) a mandatory requirement for companies seeking Lagos State Government contracts and services, as practiced at the federal level.
In addition, the DG recommended transitioning unremitted contributions currently held in commercial banks’ escrow accounts into Transitional Contribution Fund (TCF) accounts managed by Pension Fund Administrators (PFAs), to optimise investment returns.
She also advised Lagos State to implement an Irrevocable Standing Payment Order (ISPO) for pension contributions to be automatically deducted and remitted from Federation Account Allocation Committee (FAAC) allocations. This is to protect pension remittances from potential administrative delays.
While commending the State for its N600 million bailout for outstanding accrued rights of Lagos State University of Education (LASUED) retirees, PenCom DG appealed for further intervention to address unpaid benefits from 2023 and 2024.
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The DG also urged the Governor to consider implementing the Minimum Pension Guarantee (MPG), similar to what obtains at the mandatory CPS level. She informed the Governor that the Federal Government had started its MPG contributions and included it in the recent approval to issue the N758 billion bond to clear pension liabilities.
In response, Governor Sanwo-Olu reaffirmed the State’s commitment to pension reforms and praised the collaborative relationship with PenCom under the current leadership.
The Governor expressed support for implementing pension increases for CPS retirees, and expressed the importance of workers’ welfare in his administration’s agenda.
While he was optimistic about the sustainability of reforms by future administrations, he noted that an ISPO may not be necessary at this time, while calling on PenCom to support Lagos State’s developmental initiatives by encouraging pension fund investments in government-issued bonds.
