Lagos: The Chairman of the Senate Committee on Establishment and Public Service, Sen. Oluwole Fasuyi, has called on pension operators to enhance collaboration to improve contributor welfare. Fasuyi made this appeal during the inaugural leadership retreat for the pension industry, organized by the Pension Fund Operators Association of Nigeria (PenOp) in Lagos. The retreat, which spanned from Thursday to Saturday, centered on the theme ‘Sustainable Retirement: Strategic Blueprint for Economic Development and Inclusion.’
According to News Agency of Nigeria, Fasuyi emphasized the necessity of joint efforts to address challenges within the sector and improve the system for retirees. He stressed that operators, regulators, and legislators need to work more closely to change the pension narrative and enhance contributor welfare. Fasuyi acknowledged the growing concerns from contributors wishing to exit the scheme, highlighting the frequent petitions received against its mandatory nature. However, he asserted that expanding inclusion through public awareness remains a legislative priority, pointing out that the market is much larger than the reported ?22 trillion. He urged that the legislative oversight should not be misconstrued as hostility and advocated for the inclusion of the Senate in all industry engagements.
Fasuyi identified Pension Fund Administrators (PFAs) as key players in social welfare who should prioritize contributor wellbeing alongside financial returns. He assured operators of the Senate’s commitment to maintaining an oversight role with a human face.
In his remarks, Mr. Mohammed Ahmad, the founding Director-General of PenCom, underscored the importance of collaboration within the pension industry. He highlighted that PenCom was established by the legislature and that stronger partnerships among lawmakers, employers, employees, and regulators are crucial for the sector’s development. Ahmad pointed out the difficulties in saving for the future due to low incomes, high unemployment, and significant cash held outside the banking system. He advocated for closing industry knowledge gaps and preserving institutional memory to strengthen operations.
Umar Mairami, former Managing Director of Premium Pension, encouraged stakeholders to increase contributor numbers, which remain alarmingly low. He explained that increased participation would boost business for PFAs and support broader economic development. A rise in contributors, he added, would lead to higher business volumes and improved national growth indicators. Mairami recommended tax exemptions for contributors to promote participation and retirement security. He called for industry players to agree on a shared goal to enhance enrolment and build unity across all parties, emphasizing the need to balance profitability with contributor protection to ensure long-term industry growth.
Dr. Faruk Aminu, former PENCOM investment head, urged PFAs to enhance value creation for contributors through improved services. He advised lawmakers to consider mandating higher employer contributions to address pension adequacy challenges, highlighting that policy consistency is essential as problems in pensions impact all sectors of the economy.
