Nigeria’s Pension Scheme yields positive results

Nigeria’s pension scheme yields positive results

Nigeria’s New Pension Scheme, introduced in 2004, has recorded over 2.3 trillion Naira as pension contribution by both public and private sectors.

The figure, according to commission in charge of the scheme, Pencom, comprised of the 7.5 per cent contribution each by employers and employees in both public and private sectors, from the beginning of the programme.

The Commissioner Inspectorate in the commission, Dr. Musa Ibrahim said the new system had ensured that a worker took ownership of his contribution, and had also solved the problem of funding that surrounded the previous scheme.

"With this system, you can even plan and decide to quit job because you have enough fund to do something else. You are assured that the funds are yours and belong to you, even in the event of death it goes to your family," Dr. Musa said.

Dr. Musa Ibrahim explained that under the new scheme, Pencom was authorized to supervise and regulate fund managers, administrators and custodians to ensure proper management of contributed funds and easy access after retirement.

The uncertainties that surrounded the previous scheme let to the introduction of the New Pension Scheme.

Previous scheme

“The previous plan was half way in such that it does not provide a reliable funding method for the programmes.

“In the past, many retirees found it difficult to access their pension and a lot of irregularities were inherent in the system.
“Today, retirees were certain that provided they followed the necessary steps they receive their entitlement as at when due; and in the event of death, their families will received all that belong to them without any difficulty.” Dr. Ibrahim said.

Previous Pension System guarantees Pension payment for five years. Therefore Pensioners were subjected to a lot of difficulties after that period.

Williams