FG PENCOM DEEPEN COLLABORATION ON PENSION REFORM CAPITAL MOBILISATION

FG, PENCOM DEEPEN COLLABORATION ON PENSION REFORM, CAPITAL MOBILISATION
Renewed Hope Agenda pushes strategic reforms to strengthen Nigeria’s pension system and unlock long-term investment funds
Abuja, Nigeria The Federal Government of Nigeria and the National Pension Commission (PenCom) have stepped up cooperation to deepen pension sector reforms, widen coverage, and mobilise long-term capital from pension assets for national development a move aligned with President PresidentTinubu and reinforced in official social and digital platforms such as
Officials say pension reform is no longer just about retirement security but also a catalyst for economic growth, infrastructure financing and broader financial sector development reflecting the presidency’s focus on harnessing domestic savings to accelerate national progress.

PenCom’s Leadership and Strategic Partnership
Under the renewed partnership:
PenCom has intensified engagements with civil society organisations (CSOs) to broaden reform awareness, promote inclusion, and build public confidence in the pension system. Director-General Ms Omolola Oloworaran said CSOs are crucial for informing communities about pension rights and expanding coverage, especially among informal workers.
PenCom is also working with relevant ministries and state governments to implement system upgrades, governance enhancements, and coverage expansion strategies that make the system more resilient and transparent.
These collaborative efforts are designed to bridge the pension gap, with emphasis on innovative models such as the Personal Pension Plan (PPP) aimed at informal sector workers and underserved communities. Nigeria’s pension industry, one of the largest pools of long-term domestic capital, is being strategically positioned to Invest in critical infrastructure such as roads, power, housing and renewable energy
Support the domestic debt market and investment markets
Provide institutional support for small and medium-sized enterprises (SMEs) Officials highlight that pension funds traditionally invested in government securities are now being re-oriented toward alternative assets and productive investments with greater economic impact. The government has also approved historic interventions and asset injections to clear pension liabilities and strengthen retiree confidence, reinforcing the sector’s function as a pillar of financial stability and domestic investment.Policy Direction and Implementation
Key developments under the collaboration include:
The launch of Pension Revolution 2.0, described as the most significant overhaul of Nigeria’s pension system since the introduction of the contributory scheme in 2004.
Clearance of longstanding pension liabilities including a ₦758 billion+ intervention approved by the presidency, which has significantly reduced arrears and restored trust among retirees.
Expanded automation of pension processes to improve transparency and reduce delays, while compliance enforcement has strengthened contributions and reduced defaults.
Inclusion initiatives such as the Personal Pension Plan are aimed at bringing millions of informal workers into the formal retirement system.These reforms reflect the administration’s broader economic priorities fostering labour market security, long-term savings mobilisation, and sustainable capital market development, all core components of the Renewed Hope Agenda.
Officials emphasise that deeper collaboration between the Federal Government and PenCom is translating into tangible benefits Timely pension disbursements, reducing historic backlog
Stronger enforcement of remittance compliance
Enhanced risk management and governance across pension fund administrators Improved communication between regulators, employers and contributors These efforts are underscored by ongoing stakeholder engagements, including workshops, press briefings and public forums to educate Nigerians about their pension rights and bolster faith in the system.