PenCom Is Unstoppable, But Vested Interests Want To Stop The Train

Senator Ibrahim Shekarau, Chairman of the joint Senate and House of Representatives Committees on Pensions, had expressed surprise when asked to confirm an online report that his committee was probing PenCom over certain infractions allegedly committed under the Acting Director General, Aisha Umar-Dahir.

The reports had alleged that PenCom was indicted by the Committee for spending N9bn on salaries of 386 staff, and spending N12.3bn without approval by NASS. It also went on to claim that the Independent Corrupt Practices and other Related Offences Commission (ICPC) was probing PenCom on the same matter.

Shekarau, a lawmaker not known for frivolities, declared about the claims: “It is totally false and to think that somebody somewhere is trying to frame the Acting DG for reasons best to known to them is too bad. But as far as we are concerned, we have no issue, needless recommending her for probe,”

Shekarau is a first term senator and may not have seen or heard many fairy tales yet.  But PenCom, especially under Aisha Umar-Dahir, has heard several of those tales and may have stopped worrying about them.  In the last two years, the agency must have lost count of the number of rejoinders it had to do to refute spurious and malicious publications intended, obviously, to get the DG out of the way.

No one should be in doubt that the target of the deliberate falsehoods  being sponsored against  PenCom  is the acting director general. From the first day she stepped into office, the forces that had held down the institution did not welcome her agenda for transparency and due diligence- the core values of a regulatory agency.

Mrs Umar-Dahir came with the agenda to make PenCom  a regulator that supervises a transparent and accountable pension industry where employees are required to maintain the highest ethical standards and attain the highest level of integrity in personal and official engagements.

The reforms she initiated would no doubt have infuriated some entrenched interests who believed they owned the agency. They have been fighting the DG since she came into office and had done everything to undermine her and her agenda for reform.

Yet, there is no denying the achievement of a woman who shies from the limelight and would rather her performance speaks for her. In less than two years, she has grown total assets under the Contributory Pension Scheme from  N6.4 trillion  by march 2017 to N10.22tn.

The regulatory agency had equally ensured that pension funds are secured and only invested in viable and secure instruments that assure the owners of the funds that they can access their monies as and when due.

Returns on investments must also be competitive as this is part of the funds used at retirement. Reports show that  a total of N7.34tn or 71.87 per cent of the funds has been invested by the Pension Fund Administrators in the Federal Government of Nigeria’s securities, including FGN bonds, treasury bills, agency bonds, Sukuk bonds and green bonds.

This has crushed allegations that pension funds were being misused and stolen. The allegations are only made to divert attention from the progress being made. Under the Pension Reform Act 2014, the PFAs invest the accumulating funds in different investment portfolios, funds which are in the custody of the Pension Fund Custodians.

Some of the funds were invested in agency bonds, supra-national bonds, commercial papers, foreign money market securities, and open/closed-end funds. Other investment portfolios where the operators invested the funds are REITS, private equity funds, infrastructure funds, cash and other assets.

PenCom has worked tirelessly increase pension contributions in order to positively impact the economy. While it agency is still far from meeting its target of registering  20 million contributors by 2019, it has considerably increased the numbers in the last two years.  As of September 2019, the number of registered contributors under the Contributory Pension Scheme had hit 8.85 million.

Umar-Dahir had launched the Micro Pension Plan to bring self-employed Nigerian into the pension net to enjoy benefits offered by PenCom. Through more aggressive enlightenment programmes on radio and country tours, the commission has brought greater awareness about pension contributions and the benefits that come with it.   

The management of PenCom has worked with relevant stakeholders to improve efficiency and professionalism in the industry. While the problem of employers failing to remit pension fund of employees is still not over, the commission, working with stakeholders,  has drastically reduce the incidence.

Also, in keeping with the commission’s commitment to  the effective regulation and supervision of the  Pension Industry, it had ensured that  retirement benefits are paid as and when due. Gone are the days when retirees wait for ages before receiving their pensions. More efficiency has been injected into the operations of PenCom and that of pension fund administrators through diligent oversight and technical support.

The commission has also joined the project to bridge the housing deficit in the country. Working with the Central Bank of Nigeria and other stakeholders, PenCom has spearheaded effort to allow retirement savings account (RSA) contributors access and utilize part of their RSA balance for equity contribution in respect of home ownership mortgages.

There is no doubt that PenCom has become an important player in the economy of the country in view of the assets under its regulation. It has become one of the drivers of the economy and key industry authority. This is why it is always in the frontline of public agencies that face more regular scrutiny.

But opening up its books for scrutiny has not been a challenge for the commission, especially under Umar-Dahir. The challenge has been the tale bearers who distort information aimed at ruffling the pension industry and creating groundless panic. PenCom has been moving forward at frenetic pace, but vested interests are bent on stopping the train.

 It is amazing how Dahir-Umar has been able to carry on and remain focused against the devious machinations of detractors within and outside the industry whose agenda is to seize control of the agency. She is undoubtedly a strong woman who is showing the potentials of the pension industry.

–Justina Chukwu writes from Wuse 2, Abuja

Disclaimer: This article is entirely the opinion of the writer and does not represent the views of The Whistler.