The National Pension Commission (PenCom) has decried the effects of high inflation, devaluation of the Naira, and the lingering effects of unorthodox monetary policies on the pension funds.
The acting Director-General of PenCom, Omolola Oloworaran, who spoke at a media briefing on Thursday in Abuja, lamented that the current economic realities and preceding years present unique challenges.
She said: “High inflation, the devaluation of the Naira, and the lingering effects of unorthodox monetary policies have eroded the real value of pension funds, impacting contributors’ purchasing power.
“To address these challenges, PenCom has initiated a comprehensive review of the investment regulations, focusing on diversifying pension fund investments into inflation-protected instruments, alternative assets, and foreign-currency-denominated investments.
“Our goal is to safeguard contributors’ savings and ensure resilience against future economic volatility.”
On the plans to improve PenCom’s services, Oloworaran said the commission revamped its micro pension plan and leveraged technology to incentivise informal sector participation.
She said the move has made it easier for Nigerians to save for retirement.
She added: “This initiative aligns with our vision of inclusive growth and financial security for all.
“We are also addressing delays in retirement benefit payments to retirees of federal government treasury-funded MDAs.
“Recently, N44 billion was released under the 2024 budget appropriations to settle accrued pension rights for retirees from March to September 2023.
“Moving forward, we are working with the federal government to institutionalize a sustainable solution, ensuring retirees receive their benefits promptly and without undue stress.”
