Micro Pension Plan To Generate Additional Funds For Nigeria’s Economic Development – PenCom DG

The National Pension Commission (PenCom) has said the new Micro Pension Plan for self-employed Nigerians will generate additional long term funds for Nigeria’s economic development.

The acting Director General of PenCom, Aisha Dahir-Umar, said this while delivering her opening remarks during the launch of the micro pension plan on Thursday at the State House Conference Centre, Abuja.

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Recall that President Muhammadu Buhari launched the the new pension plan , a Contributory Pension Scheme (CPS) that allows self-employed Nigerians tap into the retirement benefits offered by the National Pension Commission (PenCom) on Thursday by supervising the registration of a Keke NAPEP operator, Sagir Shawai, a resident of Karu village of the Federal Capital Territory.

According to Dahir-Umar “the Micro Pension Plan is expected to significantly expand pension coverage to greater number of Nigerians and further generate additional long term funds for Nigeria’s economic development. The Commission would collaborate with relevant stakeholders to sensitize and enlighten the target participants and members of the public on the features and benefits of the Micro Pension Plan.”

She further stated that the new plan targets the significant majority of Nigeria’s working population who operate in the informal sector.

“Participants are expected from various informal sector workers including market women, members of the National Union of Road Transport Workers (NURTW), members of Textile, Garment and Tailoring Associations, Keke Napep and Okada Riders Associations, Butchers Associations, workers in the Movie and Performing Art industry, mechanics and other workers in the automotive industry and single professionals like lawyers, accountants and many others.”

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Highlighting the achievement of the commission through the CPS, the DG said “the Contributory Pension Scheme has been very impactful in Nigeria since the commencement of its implementation in 2004. The formation of long term domestic capital, represented by the over N8.74 trillion worth of pension assets as at January 2019, belonging to 8.46 million formal sector participants, is slowly but surely changing Nigeria’s financial landscape.

“This, by extension, is also transforming the course and pace of our socio-economic development. For instance, N6.51 trillion, representing 73% of the total pension assets is invested in Federal Government Securities issued to finance various activities of Government. Thus, in the area of infrastructure alone, the pension funds invested about N95.31 billion in the N200 billion Sukuk issued by the Federal Government. Similarly, out of the N10.67 billion Green Bond issued by the Federal Government, pension funds invested N7.19 billion.”

However, Dahir-Umar expressed gratitude to the President for gracing the launch and his consistent support to the pension industry and the practical steps taken since coming into office to address the plights of pensioners in Nigeria.

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