The Director-General of the National Pension Commission (PenCom), Mrs. Aisha Dahir-Umar, has refuted claims suggesting that the commission loaned N10 trillion to the Federal Government.
These allegations arose following a motion adopted by the House of Representatives in October, tasking its Committee on Pensions to recover the purported N10 trillion pension funds “borrowed” by the Federal Government.
During a recent interview, Dahir-Umar categorically dismissed these assertions, emphasizing that PenCom is not a financial institution and does not handle pension funds directly. She clarified that the Federal Government did not obtain a loan of N10 trillion from the commission.
According to Dahir-Umar, the investments made by Pension Fund Administrators (PFAs) in Federal Government securities, such as bonds and treasury bills, are not loans but rather investments approved by relevant government agencies like the Debt Management Office and Securities and Exchange Commission. These investments are traded on authorized capital markets, including the Nigerian Exchange Limited and FMDQ OTC Securities Exchange.
Furthermore, she explained that pension fund assets are managed by licensed PFAs and held in custody by licensed Pension Fund Custodians. The PFAs are responsible for investing these assets in allowable asset classes, including Federal Government debt instruments, with the objectives of safety and fair returns, in line with the provisions of the Pension Reform Act 2014.
Addressing concerns about outstanding benefits to Federal Government retirees, Dahir-Umar clarified that any delay in payment is due to inadequate and delayed funding for the payment of Accrued Pension Rights for those who were in service before the introduction of the Contributory Pension Scheme in 2004. She highlighted that the release of funds for these payments rests with the Federal Government and is subject to budgetary constraints.
Dahir-Umar assured that all individuals enrolled under the Contributory Pension Scheme have been receiving their benefits through their PFAs, with no unresolved complaints before the commission.
As of the end of 2023, the total assets under the Contributory Pension Scheme reached N18.36 trillion, reflecting the significant role of the scheme in securing retirement benefits for Nigerians.
