The National Pension Commission has embarked on major reforms aimed at revolutionising pension sector for more returns. Ebere Nwoji in this report highlights stakeholders’ advice on how to avoid fragmentation of the accumulated assets.

Having experimented on the Contributory Pension scheme (CPS) which ushered in a well-funded pension regime that raised hope and confidence in the minds of Nigerian workers and retirees for over two decades, the National Pension Commission (PenCom), on Monday  launched what it tagged,  “Pension Revolution 2.0, with the slogan – Stronger Pensions, Stronger Nigeria.”

PenCom described the revolution as a transformative programme of reforms that builds on two decades of progress to guide Nigeria’s pension industry into its next phase of growth and resilience. The revolution, which was announced by the PenCom Director General, Ms. Omolola Oloworaran on her X (Twitter) handle on Monday 22 September 2025, seems to roll out new programme and agenda on daily basis on how to improve the CPS   system.

In embarking on the revolution, the PenCom Director General stated that the first great turning point in Nigerian pension system came in 2004 with the enactment of the Pension Reform Act, which introduced the CPS and revolutionised retirement savings in Nigeria. She noted that the reform laid the foundation for confidence, discipline, and sustainability in our pension system.

According to her, two decades later, Nigeria stands at another defining moment. Pension Revolution 2.0 which she said was the most significant advancement since 2004, bold in ambition, yet evolutionary in practice. 

She explained that the revolution ushered in a new era of dignity for retirees, inclusion for every Nigerian worker, and resilience for our national economy.

“This programme is guided by the vision of His Excellency, President Bola Ahmed Tinubu, who has directed that our pension system must enable dignity in retirement, broaden access for all Nigerians, and mobilise long-term savings as reliable capital for national development,” she said.

She said in the face of the revolution, effect from this week, the commission would release the new regulations daily. She added that each guideline sets higher standards across critical pillars – from investment and risk management to governance and compliance, to service delivery and financial inclusion. 

According to her, in line with the President’s directive, the commission will also within the next three months, pilot health insurance coverage for retirees and activate the Minimum Pension Guarantee, with the aim of safeguarding retirees’ dignity and supporting a decent standard of living.

She said the target of the reforms is enabling dignity for retirees through health insurance and a minimum pension floor.

“It is about optimising investment performance while safeguarding contributors’ funds to deliver sustainable long-term returns; expanding pensions to reach every Nigerian, especially those in the informal economy; harnessing technology and innovation to democratise access and improve service delivery, as well as unlocking pension assets as a dependable source of financing for national development,” she explained.

She described the revolution 2.0 as being more than regulatory reform, but a renewal of trust, “an evolution of our system, and a bold national strategy.” 

THISDAY observed that heralding the revolution was the launch of a think-tank team, tagged Pension Industry Leadership Council (PILC), saddled with the responsibility of driving and strengthening Nigeria’s pension sector.

The newly inaugurated PILC, has, as its mission and responsibilities, the 

setting of standards, enforcement of good corporate governance, protection of pension assets and investments in protective products among others.

PenCom further said PILC would focus on expanding coverage especially, the informal sector, enforce good governance and standards, channel assets to national development while ensuring contributors interests are paramount, drive innovation products process and of course, strengthen public confidence. 

According to PenCom, the newly inaugurated PILC will also be providing strategic directives for the industry, “Ultimately, working with the regulator and the industry to ensure that returns on pension contributions and investments match up with the inflation and other number of things the commission is already looking at in order to combat inflation or currency devaluation as the case may be and other number of reforms the commission is coming up with.”

At the PILC inauguration, which was performed by the Secretary to the Government of the Federation (SGF), Senator Dr. George Akume, PenCom Director General Oloworaran,  said that part of the things the commission was also working on, include working with partners in government to see that these instruments that could be invested  in, have an effective hedge against currency devaluation and inflation.

According to her, the commission is also coming up with the reversed investment regulations as well which essential increases to other alternative assets, real assets that can provide a hedge against inflation.

Looking at the commission’s revolutionary actions, one cannot but hail PenCom for coming up with these initiatives to prove that the commission is still active and alive to its responsibilities.

Industry observers said the inauguration at this time was a welcome development more so as it is in line  with part VI, article M of PRA2014 on the functions and powers of PenCom which states that  the commission could set up technical committee, working groups and task forces to assist it  in the performance of its duties and functions under the act.

The PenCom boss said PILC is expected to be a place where there is better coordination in driving the pension regulators’ strategic objectives for the industry even though the council’s goal may not be combating the inflation effects on pension assets balances. 

Industry analysts however cautioned that in carrying out these reforms partly targeted at expanding investment portfolios of pension fund for more returns on investment, the commission should be careful whom it is entrusting these activities in to avoid costly and irreparable mistakes that could jeopardise the future of Nigerian workers.

The commission has also been cautioned on the issue of sustainability of the programmes it listed especially the minimum pension guarantee and health insurance for retirees and ensure they are not politically motivated, especially as election is close by.

Stakeholders seem to be more interested in the commission’s plans to reverse or review investment windows. To this end, they cautioned that as much as the commission has the power to dictate through the pension fund custodians the areas the funds should be invested, it should look critically at the future of such windows to avoid possible erosion of the accumulated funds.

On the constitution of the members of the PILC, they urged the commission to be careful in such selection to avoid a repeat of what happened in the pension system prior to CPS.

Analysts said one of the beauties of the PILC is its assignment on driving the Micro pension scheme, which the sector operators have not been able to drive with significant achievement in the past six years.

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