Business
PENCOM Boss Assures On Pension Scheme
The Director General, Pension Commission (PENCOM), Mr. Muhammad Ahmad, last Sunday said that the Contributory Pension Scheme (CPS) was on course, despite the ongoing probe by the National Assembly.
He gave the assurance in a statement he personally signed and made available to newsmen in Lagos.
Ahmed stated that the commission’s position and activities had been made known to the joint senate committee investigating the administration of pension.
He stated that the fund had also generated a pool of long term investible funds, which was already impacting positively on the nation’s economy.
“The CPS is on course and not in any way endangered by the ongoing probe by joint senate committee on the plight of pensioners.
“The pool of pension funds and assets generated by the CPS has strengthened the Nigeria’s financial sector.
“It has also provided a platform for attaining the transformation agenda of government in the provision of infrastructure, energy, employment generation and development of the real sector of the economy,’’ he stated.
The director noted that the Pension Reform Act, 2004 had enhanced the administration of pension by providing effective, efficient and transparent way of administering it in the Federal Public Service and the private sector.
According to him, 5.01 million employees have registered under the CPS in the public and private sectors.
He noted that the public sector, comprising the federal and state governments, had 31 per cent and 23 per cent respectively, while the private sector had 46 per cent.
He stated that the value of pension assets under the CPS, stood at N2.45 trillion as at Dec., 2011, with a monthly contribution of N20 billion and 30 per cent annual growth rate.
Ahmad said that the Federal Government had been remitting its employees monthly pension contributions into the Contributory Pension Account with the Central Bank of Nigeria (CBN).
According to him, N604.27 billion has been credited into the Account as at Dec. 2011, out of which N449.35 billion was remitted into various Retirement Savings Accounts (RSAs) of federal employees.
He stated that the federal government also paid N270.11 billion to its 48,587 retirees and deceased employees under the CPS, as at Jan. 31.
He explained that the proportion of the pension assets to Nigeria’s Gross Domestic Products (GDP) grew from 1.4 per cent in 2006 to 7 per cent in 2010.
Ahmad also stated that the CPS has simplified the process of payment of retirement benefits, through the issuance and implementation of effective regulations and guidelines.
“The regulation requires employees to start the process of accessing their benefits six months before their retirement, provides for necessary documentation, and the procedure for payment of benefits.
“This arrangement is to ensure smooth transition to retirement life and also ensure that the payment of benefits to retirees in the private sector had been regular and timely,’’ he said.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.