The federal government has urged the newly inaugurated Pension Industry Leadership Council (PILC) to prioritise transparency, accountability, and wider coverage in managing Nigeria’s growing pension sector.
Speaking at the council’s inauguration in Abuja on Thursday, the Secretary to the Government of the Federation (SGF), Senator George Akume, described the establishment of the body as a “timely and visionary step” towards strengthening the country’s pension system, safeguarding retirement savings, and mobilising long-term capital for national development.
The director general of the National Pension Commission (PenCom) and chairman of the PILC, Omolola Oloworaran, said the Council was conceived as a platform to provide strategic leadership to the industry, similar to the role played by the Bankers’ Committee in the financial sector.
“Our collective task is to expand coverage, enforce governance, mobilise pension assets for development, and strengthen public confidence in the scheme,” Oloworaran stated. “Just as the 2004 reform was the first revolution in our pension system, this Council must now lead the second evolution—one that is more inclusive, innovative, and impactful.”
The SGF noted that the Contributory Pension Scheme (CPS), introduced under the Pension Reform Act of 2004, remains one of Nigeria’s most enduring economic reforms. He explained that the scheme has restored public trust in pensions by moving away from the troubled Defined Benefits system that left many retirees unpaid and vulnerable.
“Over the years, the pension industry has recorded remarkable achievements. The scheme now covers millions of contributors, and pension assets have grown into trillions of naira,” Akume said. “However, challenges remain, particularly in expanding coverage to informal sector workers, protecting value against inflation, and deepening public confidence in the system.”
He charged the new council to strengthen trust through “strict governance standards, regular public reporting, and uncompromising transparency,” stressing that the safety of workers’ retirement funds must remain the highest priority.
Akume tasked the council with expanding pension coverage through the Micro Pension Plan, designed to bring millions of self-employed Nigerians—including traders, artisans, and small business operators—into the contributory scheme. He believes broadening inclusion is critical to ensuring that pensions are a genuine social protection tool.
Beyond coverage, the SGF highlighted the role of pension assets in financing national development. With accumulated assets exceeding N19 trillion, Akume said the industry holds enormous potential to fund infrastructure, housing, renewable energy, and support for small and medium-sized enterprises.
“Retirement savings must serve the dual purpose of providing security for contributors and supporting the productive economy,” he said. “If properly invested, pension funds can bridge financing gaps in key sectors while still guaranteeing safety and returns.”
He also called on the Council to embrace innovation, stressing the need for digital solutions such as mobile access to accounts, real-time reporting, and unified databases to enhance efficiency and combat fraud. “The future of pensions must be digital, inclusive, and transparent,” he added.
Reaffirming government support, Akume said President Bola Ahmed Tinubu’s administration would continue to provide enabling policies and a stable macroeconomic environment for the pension sector to thrive. He described pensions as “the cornerstone of inclusive economic growth and a promise that government must always keep to its citizens.”
PenCom DG stressed that the council’s work would directly shape the future security of Nigerian workers, pensioners, and their families. According to her, the new body will also work to ensure that pension administration remains transparent and accountable and transformative in driving economic growth.
Oloworaran assured stakeholders that the Council would urgently pursue innovation and inclusivity, noting that millions of Nigerians in the informal economy deserve retirement protection. “We are determined to ensure that pensions remain a promise kept for every Nigerian worker, regardless of occupation or income level,” she said.
Akume and Oloworaran called for unity, foresight, and bold action from stakeholders, emphasising that the council’s mandate goes beyond administration to shaping the security and prosperity of future generations.
