NAN-HE-11
Pension
By Gregory Mmaduakolam
Abuja, Feb. 16, 2017 (NAN) The pension industry can generate N25 trillion revenue for the Federal Government if stakeholders can adopt an inclusive pension scheme and carry out adequate publicity, a pension official has said.
Mr Paddy Ezeala, Head Corporate Communications, of Premium Pension Limited (PPL), said this in an interview with the News Agency of Nigeria (NAN) in Abuja on Thursday.
According to Ezeala, the major challenge of the contributory pension scheme is lack of adequate
public awareness, non-inclusion of the informal sector and the refusal of states to join the scheme.
Cue in audio (Ezeala)
“The major challenge of the contributory pension scheme is lack of adequate public awareness.
“It has operated for more than 12 years, yet you still need to explain the workings of this scheme.
“To even the most enlightened of communities, that is where we have the challenges because once the gains of the contributory pension scheme are maximized, then the number is huge.
“And the workforce of Nigeria that is in tens of millions – some say 50 million, some say 40 million, and some say 70 million – population grows every day – the market penetration is still around seven million.
“That is less than 10 per cent and that is a challenge.’’
Cue out audio
He said that if the industry could get hold of up to 30 per cent of the market share, it would amount to about N25 trillion, an amount the country’s economy could benefit from.
“So if you have a challenge today it is to device those ingenious approaches that can drive awareness about inclusive pension scheme and then get as many people as possible involved, not just the private sector, but the informal sector of the economy.
“These are people you see on the streets – the vulcanisers, the taxi drivers, and so on and you know that at a point, people have to retire from work.
“So it is those who have made arrangement for their retirement that will enjoy life in retirement.
“So to drive this information there is a place you can make some contributions be it voluntary, or by RSA so that by the time you can no longer work, you will have something to fall back on.
“So I think that is where the challenge lies.’’
He noted that Pension Fund Administrators (PFAs) had spent huge sums to sensitise the people to the importance of joining the pension scheme.
Ezeala, who observed that the National Pension Commission (PENCOM) had good policies that could facilitate the development of the country’s economy, urged the Federal Government to compel state governments to join the scheme.
On the new housing scheme by the Federal Government, code-named “FISH’’, Ezeala said, “PFAs were for the welfare of contributors or the retirees and any programme from PENCOM are always a well thought out programmes; there is nothing to fear.’’
He urged the government to clamp down on corporate organisations that refused to remit their staff contributory pensions.
He said PFAs were using many approaches such as radio jingles, Televisions advertisement, workshops and seminars to drive the pension scheme to the grassroots.
He explained that market penetration of the industry stood at about seven million, less than 10 per cent of the country’s population.
He noted that the gains of the industry would be maximised when many states join the scheme.
Ezeala, therefore, called on all persons yet to join the pension scheme to do so in order to enjoy life in retirement. (NAN)
GOM/YEE
Edited by Emmanuel Yashim
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