We’ll use technology to scale micro-pension – PenCom DG

The new Director General of the National Pension Commission PenCom, Omolola Oloworaran has disclosed that she and her team have been focused on strengthening compliance, enhancing service delivery, diversifying pension assets to optimize returns, improving benefits, and expanding coverage to include more Nigerians in the pension scheme, especially those in the informal sector.

She made the disclosure while addressing journalists in Lagos during a media conference on the activities of her Commission since her assumption of office earlier this year, with the theme, ‘’Tech driven transformation: Shaping the pension landscape.’’

The DG stated that the micro-pension initiative, in particular, is something the Commission is very passionate about. Said she, ‘‘it is our way of saying that no one should be left behind, no matter how small their earnings might be. Technology plays a vital role in driving this inclusion, from mobile enrolment to real-time account management to benefits administration. We intend to use technology to scale the micro-pension plan.’’

Stressing the importance of Technology in driving the process, she stated that technology has become the backbone of transformation across all sectors, and the pension industry was no exception. Said she, ‘‘at PenCom, we have embraced this transformation wholeheartedly.

‘‘Today, we have over 10.5 million contributors and oversee pension assets in excess of 21.9 trillion Naira as of October. This progress demonstrates the strength of our contributory pension system, but we are not without challenges. Inflation, for instance, continues to erode the purchasing power of pensioners, and we are actively seeking innovative solutions to address this issue.

‘‘We also continue to face the persistent issue of delays in the payment of accrued rights. Recently, 44 billion Naira was approved under the 2024 budget appropriation to settle accrued pension rights for retirees from March to September 2023. Moving forward, we are working with the Federal Government to put in place a sustainable solution that ensures retirees receive their benefits promptly and without undue delay.’’

Oloworaran also spoke about some major initiative earlier in the year. According to her, ‘‘we achieved a major milestone with the launch of the e-Application Portal for Pension Clearance Certificates (PCC) in October.

‘‘This initiative replaces the previous manual process, enabling companies to seamlessly apply for and receive PCCs online. Since its deployment, we have issued over 38,000 PCCs, significantly enhancing ease of doing business and ensuring compliance.

‘‘Additionally, the Pension Industry Shared Service Initiative is in advanced stages of implementation. This initiative will digitize pension contributions and remittances, ensuring seamless processing of contributions and resolving discrepancies caused by incomplete remittance details.

‘‘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.’’

While acknowledging the vital role of the media in the development of the pension industry, she urged members of the press to continue asking the tough questions, highlighting areas that need improvement, as well as, celebrate the wins when they come.

‘‘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,’’ she concluded.