Stakeholders in the pension industry are advocating continuous monitoring, policy adjustments, and stakeholder collaboration to ensure the long-term success and sustainability of Nigeria’s Contributory Pension Scheme(CPS).
The experts, who spoke at the 2024 Chartered Pension Institute of Nigeria(CIPN) Investiture/Induction ceremony of new Fellows and Associated in Lagos recently, said, despite prospects in pension industry, challenges such as economic volatility, regulatory gaps, and demographic shifts remain.
On his part, the director, Centre for Pension Rights Advocacy(CPRA), Ivor Takor said, if the challenges associated with the CPS are not adequately addressed, they have the potential to erode the successes achieved thus far and undermine the reasons behind the 2004 pension reform.
Speaking earlier on the sustainability of CPS, Takor stressed that the scheme was designed to improve the sustainability of pension benefits for workers as it shifted the burden of pension provision from governments and employers only, to both employers and employees, ensuring a more equitable and reliable system.
Key factors influencing its sustainability, he said, include economic stability, adequate funding, effective regulation, and robust investment strategies to generate returns, noting that continuous monitoring and adjustments are necessary to address challenges such as; inflation, economic downturns, and demographic shifts that can affect the scheme’s long-term viability.
Saying the prospects for the CPS are generally positive amid growing participation, he said, as more employers and employees join the CPS, the pool of funds under management increases, enhancing the scheme’s overall sustainability.
On improved regulation, he said, efforts of the National Pension Commission (PenCom) towards strengthening regulatory frameworks and oversight are helping to ensure compliance, transparency, and fairness within the pension system, boosting confidence among stakeholders.
“With investment opportunities, the ability to invest pension funds in diverse asset classes presents opportunities for long-term growth and contributes to the scheme’s sustainability. Moreover, leveraging technology for efficient administration, fund management, and member communication streamlines processes and reduces operational costs, benefiting the overall health of the scheme.
“Nigeria’s youthful population provides a long investment horizon for pension funds, potentially yielding substantial returns over time if managed prudently, hence, continued efforts to educate the public about the benefits of CPS, retirement planning, and financial literacy can further increase participation and support for the scheme,” he pointed out.
Earlier, the Chartered Pension Institute of Nigeria (CPIN) inducted Dr. Kayode Egbetokun; the Inspector General of Police, Senator Solomon Adeola, Chairman; Senate Committee on Establishment and Public Service Matters Sen. Cyril Fasuyi; Chairman House Committee on Pensions Hon. Hussaini Jallo and 12 other distinguished Nigerians as fellows of the institute.
They were inducted at the 2024 Chartered Pension Institute of Nigeria Investiture/Induction ceremony of new Fellows and Associates in Lagos recently.
Other inductees are: Hon. (Dr.) Olaide Mohammed; Hon. Olufemi Ogunbanwo; Hon. Akeem Ige; Lukman Muraina; Babatunde Adefusi-Owate; Abdumalik Sarki; Kashim Fugu; Kucas Durojaite; ACP Adedeji Okemuyiwa; Salami Ozomata; Jimoh Korode and John Kalu.
President/chairman of Council, Umaru Kwairanga at the event, congratulated the inductees, urging them to strive for professionalism and used their professional competence to help the country achieve her transformation and jointly address the issues of pension problems in the country.
The Inspector General of Police, who was represented by the Commissioner of Police, Lagos State Command, Adegoke Fayoade, appreciated the institute for the honour, stating that the award would strengthen the relationship between the Nigeria Police and pension industry.
