PenCom Debunks N10trn Loan Claim
By Patience Ikpeme
The National Pension Commission (PenCom) has moved to dispel rumors circulating about the management of pension funds in Nigeria.
PenCom Director-General, Mrs. Aisha Dahir-Umar, addressed several key points in a recent media interview.
She denied claims that the Commission provided a N10 trillion loan to the Federal Government. According to her, “Investments by Pension Fund Administrators (PFAs) in government securities are not loans,” she clarified. “These are investments in bonds and treasury bills, approved by relevant agencies like the Debt Management Office (DMO) and traded on authorized markets.”
Mrs. Dahir-Umar emphasized that PenCom does not manage pension funds directly. “The N15 trillion in pension assets are held by licensed PFAs and custodians,” she explained. “The PFAs invest these funds in various assets, including government securities, with the primary goals of safety and good returns, all within the legal framework of the Pension Reform Act 2014.”
She highlighted that investing in government securities is a global best practice, offering guaranteed safety and good returns. “The Federal Government has a proven track record of repaying these investments with interest, and this information is readily available on the PenCom website,” she added.
The Director-General also addressed concerns regarding delays in pension payments to some federal retirees. “These delays are due to a lack of adequate funding for accrued pension rights,” she explained. These accrued rights are for those who served before the Contributory Pension Scheme (CPS) was introduced in 2004.
“PenCom cannot release funds for these accrued rights without the government allocating them,” Mrs. Dahir-Umar said. “We are actively working with the Ministry of Finance to secure additional funding, but government budget constraints are a challenge.”
However, she assured that all those enrolled under the CPS are receiving their benefits promptly through their chosen PFAs. PenCom has no outstanding unresolved complaints regarding benefits under the CPS.
