FG working hard to sanitize pension system, says Buhari - Chrysora

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Thursday 28 March 2019

FG working hard to sanitize pension system, says Buhari

                   Buhari

President Muhammadu Buhari on Thursday assured that his administration was working hard to sanitize the rot it met in the pension system in 2015.

He gave the assurance during the launch of the Micro Pension Plan floated by the Nigeria Pension Commission at the Old Banquet Hall, Presidential villa, Abuja.

The President also promised to resolve all pending issues on pension payment.

The dignity of public servants, who worked tirelessly and sacrificed for the greatness of Nigeria, he said, will be restored.


Buhari also observed that retired public servants deserved better treatment and effective service that meets their needs to carry on after retirement.

He said “We are also working tirelessly to sanitize some of the rot within the pension system we inherited.

“I want to assure all Nigerians that this government remains committed to resolving all pending issues on pension payment in the federal public sector despite the lean resources of Government.

“The dignity of retired public servants who sacrificed their lives for this country will be restored. We will ensure all hard working Nigerians in the private sector, both formal and informal, can retire without fear,” he said.

The President also said that the Federal Government will continue to support the National Pension Commission to ensure a successful roll-out of the Micro Pension Plan, which will capture citizens that are not fully captured in the formal corporate sector.

He urged trade associations, unions, non-governmental organizations and other stakeholders in the informal sector to join hands with the government and pensions industry to enlighten their members and general public on the benefits of Micro Pension Plan.

He said, “Today, millions of traders, farmers and other entrepreneurs in various cottage industries are completely excluded from the different pension programs in existence.

“The Micro Pension Plan is the natural next step. The program guarantees that when these hard working citizens retire, they can still live in dignity and comfort.”


Towards efforts to diversify the economy and create a more inclusive and enabling environment for all Nigerians, President Buhari said the government has provided grants, concessionary loans and technical support through Small and Medium Enterprises clinics to farmers, traders and SMEs.

Also speaking at the event, Secretary to the Government of the Federation, SGF, Boss Mustapha, said the new scheme will provide more security for Nigerians in the informal sector, and expand the country’s pension coverage as well as boost the economy.

“This scheme also benefits the government because it has the potential to generate a pool for investible long term funds that can drive economic development,’’ he said.

In her remarks, the Acting Director General of National Pensions Commission, Hajiya Aisha Dahir–Umar, said the Contributory Pension Scheme had recorded huge success since it was launched in 2004, with the formation of long term domestic capital, represented by N8.7 trillion worth of pension assets as at January 2019.

The funds she explained belong to 8.46million formal sector participants.

“The Micro Pension Plan is remarkable because it unveils a unique financial product, which democratizes the saving culture in Nigeria in a systematic and efficient manner,’’ she said.

Dahir–Umar said the plan was designed after wide consultations with stakeholders, noting that the product is flexible with contribution amount and channel of remittance of contributions to respective pension accounts.

She said N6.51trillion representing 73 percent of the total pension asserts have been invested in Federal Government securities issued to finance various activities.

The acting PenCom DG said N95.31billion of the funds have also been invested in infrastructure while N7.19billion have been invested in the N10.67billion Green Bond issued by the federal government.

She said the Micro Pension Plan launched by the President targets significant majority of Nigerian working population who operate in the informal sector.

Micro Pension Plan is designed to fit the peculiarities of these informal sector groups. The National Pension Commission has issued a robust guideline on micro pension plan to the provision of section 2(3) of the pension reform act 2014.

”The product is flexible with respect to contribution amount and the channel of remittance of contributions to the respective pension accounts. Access to accumulated contributions is also flexible, seamless and facilitated by technology through varied payments system platform,” Aisha said

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