PenCom DG Decries Incidences Of Pension Fraud, Says Assets Under CPS Hit N13trn

The Director General, National Pension Commission (PenCom), Aisha Dahir-Umar, has decried the incidences of fraud in the pension sector in Nigeria, saying there is urgent need to find ways of eradicating the menace in a proactive manner even as she disclosed that the total pension assets under the Contributory Pension Scheme (CPS) have grown to over N13 trillion.

This showed  a growth of N22 billion between September and October this year.

This was disclosed by PenCom DG in her goodwill message at the opening ceremony of the two-day sensitisation workshop on the “Eradication of Pension Fraud in Nigeria” in Abuja, yesterday.

She said “Retrogressive elements continued to exploit procedural gaps in the operations of pension practitioners in both the CPS and DBS to the detriment of unsuspecting public. Thus, new issues and challenges continue to emerge, which place special responsibility on the regulators, the operators and other stakeholders to constantly review their operating environment with a view to finding solutions to address the problems,” she said.

Recall that PenCom in  a report of performance of the pension industry released in September, had said the assets rose by N123.47 billion in July 2021 to close at N12.78 trillion compared to the N12.66 trillion rate recorded in the previous month.

The DG said the pension reform of 2004 by the federal government, including introduction of legal and institutional frameworks aimed at addressing the rot that characterised the administration of pensions in the pre-reform era are part of measures that have substantially restored credibility and confidence in Nigeria’s pension system. “Thus, we have, today, an industry that has accumulated pension assets in excess of N13 trillion, invested in various aspects of the economy and still growing,” she stated.

Dahir-Umar said PenCom has consistently undertaken public education, enlightenment and awareness campaigns on the CPS and other pension matters.

According to her, PenCom has also developed and established structures, systems and procedures that ensure transparency, accountability and efficiency in the administration of pension in Nigeria. “These systems and procedures have become reference points for other African countries, many of whom have undertaken study visits to the commission,” she said.

Also speaking at the event, Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Abdulrasheed Bawa, said following the uncovering of over N157 billion pension fraud, the battle line is drawn against pension fraudsters.

According to him, EFCC will put an end to the rot in the nation’s pension system.

EFCC’s Director of Operations Abdulkarim Chukkol confirmed that the anti-graft agency had investigated alleged pension fraud cases of over N157 billion.

Bawa, who spoke in Abuja at the opening of a two-day sensitisation programme on eradication of pension fraud in Nigeria, said the commission would enforce the laws against fraud.

He said: “Nigeria, for many years, operated the Defined Benefit Scheme until 2004 when the administration of President Olusegun Obasanjo came up with the pension industry reforms that heralded the Contributory Pension Scheme (CPS).

“At the time, the new scheme was considered the antidote to fix all the problems and imperfection of the old order. But two decades into operating the CPS, it is obvious that while we may have taken some steps forward, we are still very far from our destination.”