Abuja: The Contributory Pension and Happy Retirement Advocacy (COPEHRA) has commended President Bola Tinubu’s transformational leadership in the pension industry over the past two years. The COPEHRA Senior Technical Advisor, Alhaji Sani Mustapha, highlighted these accomplishments during an interview with the News Agency of Nigeria.
According to News Agency of Nigeria, Mustapha noted that the pension industry, under the guidance of the National Pension Commission (PenCom), has seen increased transparency, accountability, and integrity. The country’s pension fund assets reached an unprecedented high of N19.53 trillion in the first quarter, spurred by strong performances in equities, mutual funds, and federal government securities.
Mustapha emphasized that the Tinubu-led government approved the issuance of a N758 billion bond to settle outstanding pension liabilities under the Contributory Pension Scheme (CPS). This bond aims to address pension increases since 2007, amounting to N388 billion, benefiting over 250,000 retirees. It reflects the administration’s pledge to maintain fair pensions responsive to economic realities.
For the first time, the Federal Government contributed N107 billion to the Pension Protection Fund (PPF) to ensure pensioners, especially low-income earners, receive a living wage in retirement. Additionally, N11 billion was allocated to address the pension shortfall for university professors, allowing them to retire on their full salary, thereby enhancing financial security for all retirees under the CPS.
Mustapha praised plans to amend the Pension Reform Act (PRA), last reviewed in 2014. A significant change was the March PenCom directive that, effective June 1st, pension fund administrators (PFAs) will process and approve benefits directly, boosting timeliness and transparency in benefit approvals.
However, Mustapha expressed concerns about states yet to join the CPS and employers failing to remit employees’ pension contributions to their Retirement Savings Accounts (RSA). He noted that pensioners no longer protest on the streets, as their rights are respected, anticipating more positive developments.
Mustapha concluded by acknowledging Tinubu’s achievements and urged citizens to support the government. He also commended the Director-General and management of PenCom for advancing the Renewed Hope Agenda in the pension sector.