PenCom Launches Dollar-Linked Naira Investments to Shield Pensions
By Patience Ikpeme
In a move to protect pension savings from currency fluctuations, Ms.Oloworaran, Director-General of PenCom, revealed ongoing discussions with the Central Bank of Nigeria and the Federal Ministry of Finance to enable pension investments in naira while generating returns in dollars.
This innovation underscores PenCom’s proactive approach to shield retirement funds from exchange rate volatility. Ms. Oloworaran also announced that PenCom will soon unveil a revised Investment Regulation aimed at expanding opportunities in alternative investments and delivering better real returns to pension contributors across Nigeria.
During a visit to the Trade Union Congress (TUC) President, Comrade (Engr.) Festus Osifo, on Wednesday in Abuja, she addressed reforms underway to tackle value erosion in pension savings caused by inflation. “We are focused on mitigating inflation’s impact to preserve the purchasing power of pension assets,” she said.
Acknowledging the critical partnership between PenCom and TUC, Ms. Oloworaran stressed the need for stronger collaboration to ensure employers nationwide comply with pension obligations under the Pension Reform Act 2014.
“Timely remittance of pension contributions by employers is essential to securing workers’ financial futures, and we count on TUC’s support to enforce this,” she stated.
Furthermore, PenCom plans to introduce a minimum pension guarantee for all retirees under the Contributory Pension Scheme (CPS), enabled by President Tinubu’s approval of a N758 billion bond. This bond, which includes funding for the Pension Protection Fund (PPF), aims to guarantee a dignified retirement for Nigerian workers.
Comrade Osifo commended PenCom for its professionalism and effectiveness, praising its staff for integrity, competence, and dedication.
He pledged TUC’s ongoing support in promoting employer compliance and condemned those who deduct pension contributions but delay remittance, highlighting the resulting financial harm and industrial conflicts.He also called for a review of the Pension Reform Act to introduce greater investment flexibility to better protect pensions from inflation and exchange rate pressures.
PenCom and TUC are committed to deepen the CPS, enhance regulatory compliance, and secure the future retirement benefits of Nigerian workers. It is worthy to note that this collaboration will build a more resilient pension system that delivers real value and dignity in retirement.
