President Muhammadu Buhari said on Tuesday, at the World Pension Summit in Abuja, that Nigeria’s Contributory Pension Scheme had, to a large extent, stabilised the nation’s pension administration. According to Buhari, it is globally acknowledged that pension matters occupy a strategic place not only as a vital component of social security, but also as a vehicle for nation building.
The theme of this year’s summit is “Pension Innovations: The African Perspective.”
The president, represented by the Head of Service of the Federation, Mrs Winifred Ayo-Ita, said the summit would enable countries and stakeholders to brainstorm on how to tackle their economic challenges.
“Nigeria in 2004 established contributory pension scheme due to its advantages such as sustainability as a system with framework that would eliminate incentives for corruption.
“Also, It is noteworthy that within 12 years of implementing contributory pension scheme in the country, it has to large extent, stabilised our pension administration system.
“For instance before the reform, Nigeria has huge pension liabilities in trillions of naira but now the contributory pension scheme has generated over N5.8 trillion assets as at 30th June 2016,’’ Mr President said.
Buhari said that the assets had been invested in the various sectors of the nation’s economy. He explained that globally, pension matters occupied a strategic place not only as a vital component of social security but also as a vehicle for nation-building.
The president added that African countries had given considerable attention to pensions due to myriads of challenges encountered in the administration of pensions.
Buhari said the Federal Government had extended the pension scheme to states and local governments in line with Pension Reform Act of 2014, adding that many states had adopted the scheme. The president stressed that states and local governments presently, were on various stages of implementing its pension schemes.
He called on the National Pension Commission (PENCOM) to extend its net to people in informal sector. Buhari also directed PENCOM to step up its enforcement drive to public and private sector institutions to ensure full compliance and in line with the enabling law.
According to him, the current administration will make funds available to address some issues of liabilities in the pension scheme.
Earlier, former President Olusegun Obasanjo, who is the founder of contributing pension scheme in Nigeria, advised many countries to reform their pension scheme.
Obasanjo called on the countries in Africa to emulate Singapore which had effective and efficient pension system that enabled it to build houses for its pensioners through their pension scheme. He advised the Federal Government to extend its pension scheme to states, local governments and private sector, to ensure a wider coverage of the scheme.
Obasanjo urged the participants at the summit to strengthen pension laws so that fraudulent people would not find it easy to embezzle the fund.
Eric Eggink, Founder, World Pension Summit, said due to innovation of Android phones, many people could now invest on pension scheme anywhere they used their mobile phones. Eggink called on workers, both in private and public sectors, to register for the pension scheme, to save for the rainy day.
Mrs Chnelo Anohu-Amazu, Director-General of PENCOM, said after a long period of faltering economic performance, there had been resurgent growth over the last decade in African countries’ GDP.
She listed African unique entrepreneurial/innovative spirit, emerging from its industries, smaller innovative initiatives such as the portable irrigation technology as some of the factors that led to the growth of African economies. She, however, explained that Africa’s infrastructure by far remained the most deficient sector hampering the continent’s development. The summit was attended by important dignitaries including Gov. Nasiru el-Rufai of Kaduna State; former Governor of Cross River, Donald Duke; NLC President, Ayuba Wabba, and President of TUC, Kaigama Bala.
