PenCom rues effects of inflation, naira devaluation on pension funds - Ripples Nigeria
Connect with us

Business

PenCom rues effects of inflation, naira devaluation on pension funds

Published

on

The National Pension Commission (PenCom) has decried the effects of high inflation, devaluation of the naira, and the lingering effects of unorthodox monetary policies on the pension funds.

The Acting Director-General of PenCom, Omolola Oloworaran, Acting Director-General (DG) of PenCom, who spoke at a media briefing on Thursday in Abuja, lamented that the current economic realities and preceding years present unique challenges.

She said: “High inflation, the devaluation of the Naira, and the lingering effects of unorthodox monetary policies have eroded the real value of pension funds, impacting contributors’ purchasing power.

“To address these challenges, PenCom has initiated a comprehensive review of the investment regulations, focusing on diversifying pension fund investments into inflation-protected instruments, alternative assets, and foreign-currency-denominated investments.

“Our goal is to safeguard contributors’ savings and ensure resilience against future economic volatility.”

On the plans to improve PenCom’s services, Oloworaran said the commission revamped its micro pension plan and leveraged technology to incentivise informal sector participation.

READ ALSO: Tinubu appoints new CCT, PenCom chairmen, ICRC DG

She said the move has made it easier for Nigerians to save for retirement.

She added: “This initiative aligns with our vision of inclusive growth and financial security for all.

“We are also addressing delays in retirement benefit payments to retirees of federal government treasury-funded MDAs.

“Recently, N44 billion was released under the 2024 budget appropriations to settle accrued pension rights for retirees from March to September 2023.

“Moving forward, we are working with the federal government to institutionalize a sustainable solution, ensuring retirees receive their benefits promptly and without undue stress.”

By: Babajide Okeowo

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

Exit mobile version