The National Pension Commission, PenCom, on Thursday said it had issued over 38,000 Pension Clearance Certificates, PCC, so far to organisations, in 2024.
The Director-General of PenCom, Omolola Oloworaran, said this at a workshop organised by PenCom for journalists covering the pension industry in Lagos.
The theme of the workshop was, “Tech-Driven Transformation: Shaping the Pension Landscape”.
In 2023, PenCom issued 30,293 PCCs to firms.
PCC is an evidence of compliance with the Pension Act.
it serves as a prerequisite for all suppliers, contractors, or consultants soliciting contract or business from Ministries, Departmentss, and Agencies, MDAs, of the Federal Government.
PenCom commenced the issuance of PCC to organisations in 2012 in line with the Pension Reform Act, PRA, which mandates all organisations with at least three employees to participate in the Contributory Pension Scheme, CPS.
However, the certificate is valid up to Dec. 31 of the year it was obtained, irrespective of the date it was issued within the year.
Organisations are, thus, required to apply for new PCC’s each year.
Ms Oloworaran said that the commission also achieved a major milestone with the launch of the e-Application Portal for the PPC in October.
She said that the initiative replaced the previous manual process, enabling companies to seamlessly apply for and receive PCCs online, significantly enhancing ease of doing business and ensuring compliance.
The director-general said that the Pension Industry Shared Service Initiative is in an advanced stage of implementation.
She said that the initiative would digitise pension contributions and remittances, ensuring seamless processing of contributions and resolving discrepancies caused by incomplete remittance details.
“To further enhance contributors’ experiences, we have introduced a revised programme withdrawal template, simplifying access to voluntary contributions and revising the threshold for en-bloc payments in line with the new minimum wage.
“These measures are designed to make retirement processes more efficient and user-centric.
“But beyond policies and systems, what really excites me is the potential to transform lives,” she said.
According to her, technology has become the backbone of transformation across all sectors, and the pension industry is no exception, hence PenCom has embraced the transformation wholeheartedly.
Ms Oloworaran said that there are over 10.5 million contributors, while pension assets are in excess of N21.9 trillion as at October.
She said that this progress demonstrated the strength of the CPS, though not without challenges.
“Inflation, for instance, continues to erode the purchasing power of pensioners, and we are actively seeking innovative solutions to address this issue.
“We also continue to face the persistent issue of delays in the payment of accrued rights.
“Recently, N44 billion was approved under the 2024 budget appropriation to settle accrued pension rights for retirees from March to September 2023.
“Moving forward, we are working with the Federal Government to put in place a sustainable solution that ensures that retirees receive their benefits promptly and without undue stress,” she said.
She said that since assuming office, she and her team had been focused on strengthening compliance, enhancing service delivery, diversifying pension assets to optimising returns.
She said that they had also been improving benefits and expanding coverage to include more Nigerians, especially those in the informal sector.
Ms Oloworaran expressed passion over the micro-pension initiative, in particular, noting that it is the commission’s way of fostering financial inclusion, no matter how small an earning might be.
She said that the commission intended to use technology to scale the micro-pension plan.
“Technology plays a vital role in driving this inclusion from mobile enrollment to real-time account management,” she said.
She said that PenCom planned to rebrand the micro-pension scheme, and also target onboarding not less than 20 million Nigerians in the informal sector.
Ms Oloworaran acknowledged the role of the media as stakeholders in the success of the pension system.
“As we integrate technology across every aspect of the pension industry, we are paving the way for a future where the CPS becomes more accessible, reliable, and sustainable.
“However, this transformation cannot succeed without your unwavering support as media practitioners.
“Your role in amplifying our initiatives and educating stakeholders across Nigeria is essential to achieving this vision,” she said.
She described the ability of the media to inform, educate, and hold institutions accountable as invaluable.
“Together, we can ensure that every Nigerian, including the most vulnerable, has access to a secure and dignified retirement,” she said.
NAN
