The National Pension Commission (PenCom) has launched a formal review of the Pension Reform Act 2014, which has remained unchanged for 12 years. The move aims to modernize the legislation, address implementation gaps, and improve retirement outcomes for contributors across Nigeria.
PenCom Director-General Announces Legislative Review
PenCom Director-General and Chairman of the Pension Industry Leadership Council, Omolola Oloworaran, disclosed the review on Tuesday at a press conference following the council's third quarterly meeting at Fraser Suites in Abuja. The gathering brought together leaders from Pension Fund Administrators, Pension Fund Custodians, Closed Pension Fund Administrators, and the Commission to assess industry performance and set reform priorities.
Oloworaran explained that the Act, which has not been amended in 12 years, no longer adequately supports the reforms the commission is pursuing. 'The reason we are reviewing is to modernise the Act,' she said. 'Things continue to change, and we continue to come up with reform ideas that improve the lives of ordinary Nigerians who are part of the scheme.' She acknowledged that certain weaknesses had surfaced during implementation. 'Certainly, we did have some implementation gaps in the previous Act that we'll also try and correct in this Act,' she added, noting that all proposed amendments were designed to benefit contributors and retirees. Oloworaran declined to reveal specific changes under consideration, citing ongoing stakeholder consultations.
PenCom Targets Capital Markets, Compliance, and Pension Literacy
Beyond the legislative review, the council deliberated on measures to make Nigeria's pension industry more competitive and accessible. These included advancing the proposed Pension Industry Infrastructure Fund, which Oloworaran said had reached an advanced stage, and introducing a liability-driven investment framework to strengthen retirement outcomes.
PenCom also announced its first National Pension Week, scheduled from September 15 to 19, aimed at improving public understanding of the pension system. Oloworaran admitted that enrolment of women under the Personal Pension Plan had fallen well short of expectations. 'I was hoping that we would get one million women on board, but we haven't even gotten close to that,' she said, noting that the commission was reaching out to market women associations and transport unions to drive participation in the informal sector.
On compliance, Oloworaran said enforcement against employers who fail to remit workers' contributions would be stepped up. PenCom currently works with the Independent Corrupt Practices and Other Related Offences Commission and plans to bring the Economic and Financial Crimes Commission on board shortly.
State Implementation and Health Insurance Progress
Oloworaran also disclosed that only eight states had fully implemented the Contributory Pension Scheme, with two more close to doing so. The pilot health insurance scheme for retirees had attracted roughly 13,000 participants against a target of 30,000. To boost enrolment, eligibility was expanded to cover pensioners earning monthly pensions of up to N150,000, temporarily raised from the previous N70,000 threshold.
