The Secretary to the Government of the Federation (SGF), Senator George Akume, has formally established the Governing Board for the National Pension Commission (PenCom). He urged the board members to uphold the highest standards of corporate governance and risk management to protect the substantial N28 trillion held in pension assets under the Contributory Pension Scheme (CPS).
Akume emphasized that the board's mandate includes reinforcing public trust in the pension system, assuring contributors that their retirement savings are secure and managed effectively.
During the inauguration ceremony in Abuja, Akume called for a strict policy against misconduct. He directed the board, chaired by Agbaje Opeyemi Olukayode, to prioritize robust internal controls, comprehensive risk management strategies, and transparency in all decision-making processes.
This development was welcomed by the Nigeria Employers’ Consultative Association (NECA), which commended the federal government for the board's inauguration, viewing it as a vital step towards enhancing governance, transparency, and accountability within Nigeria's pension sector.
The SGF highlighted PenCom's crucial role in the financial sector, noting its responsibility for the retirement savings of millions of Nigerians. He stated that the inauguration signifies the government's dedication to fostering a pension system that is transparent, resilient, and trustworthy.
Senator Akume further described the board's role as nationally significant, expecting members to provide strategic direction, policy guidance, and effective oversight in compliance with the Pension Reform Act 2014 (PRA) and other relevant legislation.
He carefully distinguished between the board's oversight function and management's operational responsibilities. Akume pointed out that any interference in day-to-day operations could weaken accountability and undermine the institution's effectiveness.
The SGF underscored the significant growth of the pension industry, with assets now exceeding N28 trillion, representing the retirement security of millions of contributors.
Reaffirming the government's commitment, Akume assured that the administration of President Bola Tinubu is dedicated to meeting all pension obligations. He mentioned that measures are being taken to address outstanding liabilities and restore confidence, focusing on ensuring retirees receive their benefits with dignity and punctuality.
Akume expressed his conviction that the board members would exhibit exemplary leadership, disciplined governance, and unwavering commitment to the Nigerian populace.
In her address, PenCom Director-General, Ms. Omolola Oloworaran, expressed gratitude to the SGF for his strategic leadership and contributions during the period the commission operated without a board.
She pledged to work collaboratively with the new board, emphasizing a shared commitment to serving the best interests of Nigerians and ensuring that all board decisions yield tangible benefits for contributors and retirees.
Oloworaran described the inauguration as both timely and significant, as it reinstates the commission's oversight function and strengthens its governance structure.
She conveyed her anticipation for a productive and cooperative working relationship with the board.
The PenCom boss reassured that both the board and management would diligently pursue the commission's mandate, expressing confidence in a strong partnership to advance the pension industry's objectives.
Representing the board members, Olukayode conveyed appreciation to the President for entrusting them with this national responsibility.
He affirmed the board's complete dedication to upholding the principles outlined by the SGF, particularly concerning corporate governance, integrity, strong leadership, and maintaining a clear separation between governance and management.
The chairman pledged the board's resolve to support the administration's agenda by utilizing pension funds to stimulate national development, particularly in key sectors such as infrastructure and housing.
In a separate statement, the Director General of NECA, Mr. Adewale-Smatt Oyerinde, noted that the inauguration followed a considerable delay, which had caused concern among employers and stakeholders regarding the oversight of pension assets and the overall integrity of the CPS.
Oyerinde stated, "The formation of the PenCom Board is both timely and commendable. It addresses a significant governance gap and reinforces confidence in the management of pension funds, now valued at over N28 trillion, which represent the retirement security of millions of Nigerian workers."
He specifically lauded President Bola Ahmed Tinubu's administration for its decisive action in restoring PenCom's statutory governance framework in accordance with the Pension Reform Act 2014.
NECA also echoed the sentiment of the SGF, Senator George Akume, who urged the board to maintain the highest corporate governance standards, exercise strict oversight, and refrain from interfering with management's daily operations.
Oyerinde emphasized that a clear distinction between governance and management is essential for institutional effectiveness, stating that "strong oversight, without operational interference, is fundamental to sustaining accountability and safeguarding contributors’ funds."
While welcoming the development, he also encouraged the newly appointed board to prioritize transparency, effective risk management, and strict adherence to global best practices.
He stressed the importance of maintaining employer and public confidence in the pension system for the continued success and sustainability of the CPS.
"The business community remains committed to fulfilling its statutory obligations under the CPS. However, this commitment must be matched with strong governance frameworks that guarantee the safety, security, and efficient management of pension contributions," he added.
NECA further expressed optimism that the collaboration between the board, led by its Chairman, Dr. Opeyemi Agbaje, and PenCom's management, headed by its Director-General, Ms. Omolola Oloworaran, will usher in an era of enhanced institutional performance and improved service delivery to contributors and retirees.
The association reaffirmed its readiness to continue engaging with stakeholders to promote policies and initiatives that boost the efficiency, transparency, and sustainability of Nigeria's pension system.
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