OBJ cautions on pension funds safety
The former President of Nigeria, Chief Olusegun Obasanjo, has called on the National Pension Commission (PenCom) to ensure safety of the accumulated pension funds.
He made the call at the on ongoing 2016 World Pension Summit African Special held in Abuja.
Obasanjo, who gave history of pension and pension reforms in the country said that trust remained the only key for pension to succeed. ” I am happy that what we put together years back has become successful. We must not reduce trust, retirees will be rest assured that when they retire, when come to collect the money, it will be there.
Addressing participants at the event, he noted that African leaders must ensure effective regulation and supervision pension and security system.
He identified untimely release of allocations to pay pensions, weak, inefficient, less transparent and cumbersome structures among others as some of the challenges facing pension schemes across Africa.
He said that “Poor coverage and non-inclusion of the private sector, the self-employed and informal segment which is increasingly becoming an important pillar of African economies are also issues which African countries are grappling with.
Earlier in her welcome address, the Director-General PenCom, Mrs. Chinelo Anohu-Amazu, stated that the theme of the summit which is focused on innovation was born out of challenges in the economy, adding that she believes the challenges would resonate with delegates and provide a platform for the exchange of ideas and experiences on innovative practices in pensions and social security to advance the African agenda of addressing economic and social challenges.
She highlighted some the challenges to include infrastructure adding that cutting-edge Infrastructure wad critical for economic growth and social progress.
She noted that bridging Africa’s infrastructure deficit would require sustained spending of about US$93 billion per annum, which translates to about 15% of Africa’s GDP.