Employers welcome PenCom board, urge strong administration

The Nigeria Employers’ Consultative Affiliation has counseled the Federal Authorities for the inauguration of the Governing Board of the Nationwide Pension Fee, describing the event as a vital step towards strengthening governance, transparency, and accountability in Nigeria’s pension trade.

The Director-Basic of NECA, Mr Adewale-Smatt Oyerinde, in an announcement issued in Geneva, Switzerland, on Tuesday, famous that the inauguration comes after a chronic delay, which had raised issues amongst employers and stakeholders concerning the oversight of pension belongings and the general integrity of the Contributory Pension Scheme.

In line with NECA, the structure of the PenCom Board is each well timed and commendable. “It addresses a big governance hole and reinforces confidence within the administration of pension funds, now valued at over N28 trillion, which symbolize the retirement safety of hundreds of thousands of Nigerian employees,” NECA stated.

NECA notably applauded the Federal Authorities, beneath the management of President Bola Tinubu, for taking decisive motion to revive the statutory governance construction of PenCom in keeping with the provisions of the Pension Reform Act 2014.

NECA additionally aligned with the place of the Secretary to the Government of the Federation, Senator George Akume, who charged the Board to uphold the very best requirements of company governance, guarantee strict oversight, and keep away from interference within the day-to-day operations of administration.

The affiliation emphasised {that a} clear separation between governance and administration is important for institutional effectiveness, noting that “sturdy oversight, with out operational interference, is prime to sustaining accountability and safeguarding contributors’ funds.”

Whereas welcoming the event, NECA urged the newly inaugurated board to prioritise transparency, strong danger administration, and strict adherence to international finest practices.

The affiliation burdened that sustaining employer and public confidence within the pension system is vital to the continued success and sustainability of the CPS.

“The enterprise neighborhood stays dedicated to fulfilling its statutory obligations beneath the CPS. Nevertheless, this dedication should be matched with sturdy governance frameworks that assure the security, safety, and environment friendly administration of pension contributions,” NECA added.

NECA additional expressed optimism that the collaboration between the board, led by its Chairman, Dr Opeyemi Agbaje, and the administration of PenCom beneath its Director-Basic, Ms Omolola Oloworaran, will usher in a brand new period of strengthened institutional efficiency and improved service supply to contributors and retirees.

The affiliation reaffirmed its readiness to proceed participating with related stakeholders to advertise insurance policies and initiatives that improve the effectivity, transparency, and sustainability of Nigeria’s pension system.

The Federal Authorities’s inauguration of the board of PenCom marks a big improvement in Nigeria’s pension administration, coming after a chronic interval with no governing board.

The earlier PenCom board was dissolved in 2023 as a part of a broader choice by the outgoing administration to dissolve boards of federal businesses.