When-Strenght-matters-728x90 (1)
News

Fashola Expresses Confidence On Current Pension Funds Management

Babatunde Fashola
nigeriana news app advert

The minister of power, works, and housing, Babatunde Raji Fashola, has called on stakeholders in the pension sector to work in concert to sustain and further step up gains made by the National Pension Commission (PenCom) to avoid the sad story of the previous pension scheme.

Fashola, who spoke at the just concluded Pension Industry Strategy Implementation RoadMap Retreat, took a tour of the History of Pension Funds in Nigeria.

“It is impossible in this kind of forum to exhaustively deal with the issue of Pension Funds and its management in the Nigerian public service. What is appropriate is to highlight the largely unsuccessful initiatives that have been characterised by such brand names as the National Provident Fund (NPF) and the National Social Insurance Trust Fund (NSITF).

“Those brands represent the era when pension was only the responsibility of the employer. What simply happened was that from a failure of governance, coupled with lack of funds as a result of planning deficiency, and sometimes incompetence, pensioners faced a life of uncertainty after a lifetime of service. As at the time they had become frail, unable to work or earn income, they are left disappointed by a system that had taken all they had to give. It is a sad story written on the faces of many living and dead people whose lives tell the story of anguish.

“It is a chapter of Nigeria’s story that is perhaps best forgotten, but regrettably they cannot yet be consigned to history because there are still debts to be paid. There are still beneficiaries who are owed; there are still Nigerians who gave a lot, almost everything, under the defined benefit scheme who are yet to receive anything from them. The current pension regime whose managers are the organisers of this event, happily, have a better story to tell,” he said, adding that it is a story of mutual contribution where the employee and the employer share the responsibility of planning for tomorrow.

ALSO READ:  OBJ’s Letter To NASS And Matters Arising

Commending the competence of the regulator, the PenCom, he added that “it is a story different from the past as the funds are safe and have exceeded N5 trillion.

It is a story of a better management. It is the starting point for this discussion because there is a hard lesson here. If people put their money into what they believe in, it is likely to serve them better.”

He observed that the old scheme operated in such a way where there was no contribution by the employee perhaps reduced their role as stakeholders but does not justify the mismanagement.

He said, however, “that the real story is about contribution, paying your share; and it takes me to the next point which is diversification and the relevance of diversification to our subject. It is not a vision or an idea. It has gone beyond that. It is a journey, one that started a while ago when the Pension Reform Act was signed into Law.

story different from the past, where the funds are safe and have exceeded N5 Trillion. It is a story of better management. It is the starting point for this discussion because there is a hard lesson here.

If people put their money into what they believe in, it is likely to serve them better”.

He observed that the old scheme operated in such a way where there was no contribution by the employee perhaps reduced their role as stakeholders but does not justify the mismanagement.


[Advertisement]
Make Money Online in Nigeria... Click HERE To Start Now!



Comments
To Top
Loading...