Nike Popoola
The total pension assets under the Contributory
Pension Scheme rose to N8.49tn as of the end of November 2018 financial
period, latest figures obtained from the National Pension Commission on
Tuesday revealed.
The pension commission said 72.5 per cent
of the fund had been borrowed by the Federal Government and invested in
the FGN securities totalling N6.16tn during the period under review.
The
Pension Fund Administrators also invested 6.87 per cent or N584.321bn
of the fund in domestic ordinary shares, while 0.71 or N60.529bn of the
fund was invested in foreign ordinary shares.
According to the Pension Reform Act, the PFAs manage the funds which are in the custody of the Pension Fund Custodians.
The commission stated that it continued its consultative philosophy in the regulation and supervision of the industry.
According
to PenCom, the risk-based examination approach was implemented as a way
of promoting transparency and providing early warning signals as well
as encouraging pension operators to regularly self-evaluate their
positions.
The Acting Director-General, PenCom, Mrs Aisha
Dahir-Umar, said in an effort to promote a stable and sustainable
pension industry, the commission adopted zero tolerance for
non-compliance and consultative supervisory philosophy in the issuance
of guidelines and the review of existing ones to further promote sound
corporate governance in the industry and ensure the security of the
pension assets.
In addition, she said, the commission in 2018,
moved to a more risk-based approach to supervising pension operators by
aligning its supervisory framework with that of the Financial Services
Regulation Coordinating Committee.
“We believe this will promote better risk management in licensed pension operators,” she stated.
She
said the commission, last year, released the framework and guidelines
for the implementation of the micro pension scheme, which was targeted
at increased participation of employees in the informal sector,
multi-fund structure and revised guideline for fund accounting as well
as revised circular for branch opening and service centre by the PFAs.
“Similarly,
circulars on pension enhancement and processing procedures of deceased
benefits entitlement were also released by the commission,” she stated.
According
to her, the monitoring and reporting of non-compliance with regards to
the implementation of these guidelines and other existing regulations
remained part of the responsibilities of the compliance officers.
The
acting director-general said the commission would continue with its
consultative philosophy, transparency and good corporate governance in
the implementation of the CPS in Nigeria.
Source:- Punchng
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