The Nation Newspaper

Category: Pension

  • Sanlam, Allianz merge

    Sanlam, Allianz merge

    Sanlam Nigeria and Allianz Nigeria have become SanlamAllianz Nigeria following their merger, signifying one of the biggest deals in the industry.

    Parent companies of both insurers, Sanlam and Allianz, are one of the world’s most recognised insurers.

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    At a press conference, the Managing Director/CEO, SanlamAllianz Life Insurance Nigeria, Tunde Mimiko, said: ”Our joint venture, SanlamAllianz, is the fusion of complementary strengths, global expertise, rich underwriting heritage, and local insights designed to expand access to world-class insurance solutions for millions of Nigerians.’’

  • FBS Re bemoans low industry capacity

    FBS Re bemoans low industry capacity

    The landscape of reinsurers is still dominated by foreign operators, exposing the sector to capital flight, the new Managing Director of FBS Reinsurance Limited, Mr. Ganiyu Musa, has said.

    Musa, who spoke with reporters on the sidelines of the African Insurance Organisation (AIO) conference in Ethiopia, stated that there had been a vacuum for reinsurers, which is what FBS Re has come to fill.

    He pointed out that FBS Re is the only reinsurance that is local.

    Musa said: “With foreign reinsurers dominating the insurance sector landscape, what we have seen is that when conditions are right they treat you well and can give you everything. But at the slightest turn of events that may not even be related to your own country, they take their money and exit the country. Like when they lose money in the Gulf of Mexico or they lose money in Europe, they toughen conditions, restrict capacity and sometimes they totally withdraw capacity and then you are left alone.

    “So, clearly, there exists a real need for a truly local capacity in our market that is well governed and that is where FBS really comes in. Today FBS Re is the only reinsurance company in Nigeria that is truly local. Our shareholding is local and we report fully in Nigeria. Our head office is in Nigeria and we don’t take instructions from anyone outside the country. The way we present ourselves to the market is that Nigeria is our own, we are not going anywhere, and we understand your pain point.  We are not in a hurry because we are trying to build to last. So, for us, it is not a sprint, it is a marathon. We are deliberate at every step that we take that is moving us forward in the journey that we have embarked on.

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    “Secondly, when you have your pioneer CEO as a retired commissioner for Insurance (CFI) and by far, one of the most successful if not the most successful  CFIs we have had in the country, then you will know that the organisation is set up to operate on the strict level of adherence to rules and regulations.’’

    “Reinsurance is designed to operate based on ethics and highest level of governance and this resonates very well with me which was why I accepted the offer to become the MD/CEO of the company having retired successfully as MD/CEO of Cornerstone Insurance Plc. Everybody knows in the market in Nigeria when you mention Cornerstone in terms of the level of governance and ethics that is the ground we built in cornerstone. So this is why it was easy for me to sign up to the vision of FBS Re.

    Speaking on the financial position of the company, Musa said they ended the 2024 financial year with about N51billion Gross Written Premium

    “We recorded about N51billion Gross Written Premium which if you look at it within the context of having just traded for four years is phenomenal. We grew by more than 50 per cent in 2024 and more importantly the company has remained profitable from year one.

    “This indicates that our assumption in terms of the business need resonates with the market. Today, we have a business treaty with every insurance company in the Nigerian market, except for only two companies that we are not on their Treaty,” he added.

  • Somotex unveils climate-friendly air conditioners in Lagos

    Somotex unveils climate-friendly air conditioners in Lagos

    Somotex Nigeria Limited has inaugurated a new production line for environmentally-friendly air conditioners at its factory in Lagos.

    Managing Director, Somotex, Mr. Anil Mohinani, said: “This inauguration is part of Mohinani Group’s broader vision to become a leader in sustainability. From this climate-friendly air conditioner line to our ongoing R-PET recycling initiative, we are committed to driving environmental progress through industrial innovation and long-term investment.

    “With the globala climate crisis at the forefront, Somotex’s investment in clean cooling technology is a forward-thinking step that sets a new benchmark for the manufacturing sector in Nigeria and beyond.’’

    The event brought together dignitaries, including the representative of the Minister of Environment, Idris Abdullahi; representatives of the Federal Ministry of Environment; the United Nations Industrial Development Organisation (UNIDO), representative of the Lagos State Commissioners of Environment, Mr. Adeoye Babajide; other industry leaders and senior officials of Somotex.

    The initiative represents a significant milestone in Nigeria’s drive to adopt cleaner and more energy-efficient technologies.

    The use of R-32 refrigerant significantly reduces environmental impact while delivering high-performance cooling suited to the region’s needs.

    The Minister of Environment who was represented by the Director, National Ozone Officer, Department of Pollution Control, & Environmental Health, Engr Idris Abdullahi said Nigeria has been a party to the Montreal Protocol on substances that deplete the ozone layer, since 1988 when the country signed the treaty.

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    He said: “The protocol stands as a beacon of global environmental cooperation, aimed at protecting the ozone layer by phasing out ozone-depleting substances (ODS). my Ministry, as the Designated National Authority for the implementation of the protocol has continued to ensure that Nigeria fulfil its binding commitments under the Protocol, through the completion of activities that have led to the reduction in the consumption of Ozone Depleting Substances in the relevant sectors such as the Refrigeration, Air conditioning, Foam and others.

    “Consequently, my Ministry has achieved the set targets for Nigeria under the MP by phasing out Chlrofluorocarbons (CFCs), Carbon Tetrachloride & some other Ozone Depleting Substances in 2010 and further achieved the 10per cent, 35 per cent and 51.35 per cent reduction in HCFCs consumptions in 2015, 2020 and 2023 respectively” said by the representative of the Honourable Minister of Environment during the commissioning.

    “The project is the result of a strong collaboration between Somotex, the Federal Ministry of Environment, and UNIDO. It is expected to create local employment, reduce greenhouse gas emissions, and provide Nigerian consumers with access to more environmentally responsible cooling solutions”.

    Engr. Abdullahi said Somotex project represents a significant milestone under Nigeria’s HPMP Stage III, implemented with support from UNIDO.

    “Through this initiative, Somotex has successfully converted its production line from HCFC-22 to R-32, effectively eliminating over 51 metric tonnes of HCFC-22 annually from its manufacturing processes. This is a vital step toward meeting Nigeria’s commitment under the Montreal Protocol to reduce HCFC consumption by 67.5 per cent by 2025”, he added.

    The Industrial Development Officer at UNIDO, Dr. Yunrui Zhou on his part said beyond the environmental benefits, this conversion also improves energy efficiency and safety standards.

    The R-32 air conditioner line is a model of how industry and environmental responsibility can go hand in hand, he stressed.

    The Managing Director of Somotex, Mr. Anil Mohinani added: “This commissioning is part of Mohinani Group’s broader vision to become a leader in sustainability. From this climate-friendly air conditioner line to our ongoing R-PET recycling initiative, we are committed to driving environmental progress through industrial innovation and long-term investment.”

    “With the global climate crisis at the forefront, Somotex’s investment in clean cooling technology is a forward-thinking step that sets a new benchmark for the manufacturing sector in Nigeria and beyond”, he pointed out.

  • Money counsellors to retirees: Ask your PFAs for pension enhancement

    Money counsellors to retirees: Ask your PFAs for pension enhancement

    By Sandra Ezenwajiaku

    National Pension Commission (PenCom) has been increasing monthly pensions for retirees on “Programmed Withdrawal” under the Contributory Pension Scheme (CPS) through a pension enhancement window.

    But many retirees that qualify for this increase are not aware of what step to take to ensure that they partake of the increase.

    Founder, Money Counsellors Michael Oyebola said retirees should endeavour to contact or visit their Pension Fund Administrators (PFAs) to know if they are eligible for the increase and complete all required documentation if necessary.

    He advised that retirees and contributors should always have interest in how their PFAs manage their Retirement Savings Account (RSA).

    Oyebola explained that the exercise is for retirees under Programmed Withdrawal who have accumulated significant growth in their RSAs.

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    He said: “Retirees should take it as part of their responsibility. Nobody should wait for 35 years before they find out how much they have in their pension account. The problem with a lot of people is that they think they should wait till it’s 35 years before they ask questions from their PFAs. They think it is going to be a large pot of money and this is so unrealistic. What people need to do is that apart from saving your money yourself, on a monthly basis people should request for a statement of account from their PFAs.

    “The National Pension Commission (PenCom) has said PFAs have to send out statements on a minimum of quarterly basis to the people. But unless people also ask, they may not get it as often as they should get it.’’ A lot of people sit back and expect things to come to them. Sometimes for things to work, people need to go out and enquire. As an individual, it is your right to ask for your statement from your PFAs. So who is your PFA? If you don’t know, ask your employer.’’

  • PTAD clears air on pension increase implementation

    PTAD clears air on pension increase implementation

    The Pension Transitional Arrangement Directorate (PTAD) has clarified the 20 per cent and 28 per cent increases for last year.

    The implementation followed a circular titled: (SWC/S/04/S.557/T/171) from the National Salaries, Incomes and Wages Commission (NSIWC) dated July 8, last year.

    The Directorate explained that the changes in pensioners’ monthly pensions were as a result of the reimplementation of the Consequential Pension Adjustment (CPA), in accordance with directives from NSIWC last July.

    Executive Secretary, Tolulope Odunaiya explained that in May 2021, PTAD had implemented the approved Consequential Pension Adjustment (CPA), following the increase in the National Minimum Wage of April 2019, based on a circular (SWC/S/04/S.542/II/298) from NSIWC dated April 28, 2021.

    She stated that upon receiving the circular, PTAD promptly implemented the adjustment and paid the accumulated arrears for two years, using budgeted funds and savings.

    According to her, the implementation of the CPA and the arrears was calculated using Pension Pay Bands, as recommended by the Technical Sub-Committee (TSC) for pension review in line with the 2019 National Minimum Wage.

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    She said: “The TSC’s recommendation aimed to improve the welfare of pensioners at the lower end of the pension scale. This approach significantly reduced the percentage of pensioners receiving less than N10,000 monthly, from 27 per cent to 2per cent, while increasing the number of pensioners receiving up to N30,000 monthly, from 32per cent to 48per cent.

    “After the implementation, PTAD received various complaints from pensioners and pension unions regarding the accuracy of the implementation. In response to these concerns, PTAD sought clarification from NSIWC about the implementation model.

    “NSIWC’s response, via a letter dated 8th July 2024, clarified that the 2019 CPA should be applied based on Grade Levels, using the specific figures provided for each Grade Level. The letter also exempted defunct, commercialised, and privatized agencies from the increment, except for those who retired under the listed Salary Structure outlined in the circular. Following this clarification, PTAD engaged with pension union executives and relevant stakeholders to communicate these changes and ensure a smooth implementation.’’

    Odunaiya further explained that the revised approach was adopted in the August 2024 monthly pension payments.

    “As expected, some pensioners who previously benefited from the Band-based method saw their pensions change due to the switch to the Grade Level method, resulting in a reduction for some and an increase for others.

    “It is important to note that the 2024 20%/28% pension increment was calculated using the Grade Level-adjusted 2019 CPA for agencies whose salary structure was enumerated in the circular. Therefore, the adjustment depends on the re-computed 2019 CPA, based on grade levels.

    “PTAD reminds all stakeholders that it is a Government Agency tasked with implementing Government Policies and Directives”.

    The ES reaffirmed that the welfare of pensioners remains its utmost priority, in line with its mandate under the Pension Reform Act (PRA) 2014 and its day-to-day operations.

  • Pension assets rise to N23.65tr

    Pension assets rise to N23.65tr

    The Current Net Asset Value of Nigeria’s pension fund has risen to N23.65 trilllion as at April 31, 2025 from N23.32 trillion recorded in March 31, 2025, a report by the National Pension Commission (PenCom) has shown.

    Despite this, the commission was only able to capture 10.71 million contributors under the Contributory Pension Scheme (CPS) during the period under review from 10.68 million recorded in the previous month.

    This was made known in the newly released Unaudited Report on Pension Funds Industry Portfolio for the Period Ended 30 April 2025 by PenCom.

    But while the commission is reporting fund growth, the Africa Finance Corporation (AFC) has said that despite Nigeria holding one of the largest pools of institutional capital in Africa, the effective deployment of its pension assets, now totaling N23.6 trillion, is still constrained by structural challenges, chiefly credit and liquidity risks.

    The AFC made this known in its newly released State of Africa’s Infrastructure (SAI) Report.

    According to AFC, as of January 2025, Nigeria’s pension system had amassed over N22.8 trillion approximately US$14.2 billion in assets under management, underscoring its potential as a major driver of infrastructure development.

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    The report however reveals that most of this capital remains idle in the face of persistent financial bottlenecks.

    AFC said: “As of early 2025, Nigeria’s pension assets under management exceeded N22.8 trillion… However, the effective deployment of this capital in long-term infrastructure had been constrained by credit and liquidity risks,” the report states.

    “In response to these challenges, Nigeria established InfraCredit in 2017—a public-private institution designed to unlock domestic capital for infrastructure by providing guarantees that make infrastructure bonds investment-grade. Backed by the Nigeria Sovereign Investment Authority (NSIA), GuarantCo, AFC, and other partners, InfraCredit has become a cornerstone of the country’s infrastructure financing strategy.

    “InfraCredit’s key role lies in providing local currency guarantees for corporate infrastructure bonds, enabling them to meet the regulatory thresholds for pension fund investments. Since its inception, the organization has catalyzed numerous local currency bond issuances across sectors like renewable energy, gas distribution, logistics, and industrial infrastructure”.

    The AFC further stated that by enhancing credit profiles and mitigating perceived investment risks, InfraCredit has succeeded in bridging a critical gap between vast pension capital and Nigeria’s urgent infrastructure needs.

    The tangible impact of this approach was seen in pension fund allocation to infrastructure which rose sharply from just N1.2 billion representing 0.02 per cent of total assets to over N242 billion, representing one per cent of total AUM, roughly equivalent to $155 million.

    This leap, AFC said though still a small portion of total assets, demonstrates the catalytic potential of credit enhancement tools like InfraCredit.

    Rather than relying on government-mandated allocations, Nigeria’s strategy hinges on voluntary market participation enabled by risk-mitigation structures, AFC noted.

    The AFC also noted that this model could serve as a blueprint for other African nations seeking to mobilize long-term capital for development without distorting investment mandates.

    Nigeria continues to strengthen its financial and regulatory frameworks, the report urges policymakers to scale up these market-based de-risking tools to deepen pension fund engagement and empower Africa to finance its own growth from within, the AFC added.

  • PenCom woos programmed retirees with N3.6b

    PenCom woos programmed retirees with N3.6b

    The National Pension Commission (PenCom) is wooing retirees receiving their monthly pension through the programmed withdrawal mode, starting from this month with N3.6billion, The Nation has learnt.

    This is coming as the Commission introduced Pension Boost, an initiative that has led to an increase of monthly pension payment from N8.3 billion to N11.9 billion for retirees under programmed withdrawal managed by Pension Fund Administrators (PFAs)..

    The Commission however announced that retirees under life annuity mode managed by insurance companies would not enjoy the enhancement as they are out of the Contributory Pension Scheme (CPS).

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    Director-General of PenCom Ms Omolola Oloworaran who disclosed this yesterday at the second quarter PenCom Press Conference in Lagos added that the pension boost would enable retirees under the programmed withdrawal pension benefit package to received pension enhancements this month of June 2025.

    Oloworaran said: “We are introducing Pension Boost 1.0. effective June 2025. The total monthly pension payment under the CPS will increase from N8.3 billion to N11.9 billion, directly benefiting over 233,000 retirees, depending on their pension account balances.

    “The rise is driven by our new modified standard pension enhancement template, a structured transparent mechanism to adjust pension as invest return increases and this is just the beginning, she submitted”.

  • PTAD pensioners: Things to know about ‘I am Alive Confirmation’

    PTAD pensioners: Things to know about ‘I am Alive Confirmation’

    PTAD’S ‘I Am Alive Confirmations’ is a web-based solution for verified pensioners to confirm their “aliveness status” for continued receipt of their monthly pension.

    This “Web-based solution” and Confirmation process has two options outlined below: The facial confirmation & Fingerprint confirmation methods. This can be accessed using the internet via a computer or a smartphone.

    The facial confirmation is done using a smartphone to compare a pensioner’s facial image with the picture on the database taken during verification, while the Fingerprint confirmation process involves the use of a computer with the Secugen fingerprint capturing device.

    In a situation, where a pensioner is sick or infirm and cannot perform either option of the PTAD I Am Alive Confirmation Process, please do not hesitate to contact PTAD head Office, PTAD State offices and send request to complaints@ptad.gov.ng for assistance.

    Facial Confirmation

    •The Pensioner will log on to PTAD website: www.ptad.gov.ng using a smart phone/computer system. Click on the “I AM ALIVE” icon at the top of the page and follow the instructions.

    •Start the “I Am Alive” confirmation process following the 2 steps validation process:

    Enter your pensioner’s number

    Enter your Bank account number.

    •Take your photo (it will be validated with the existing picture in the PTAD database).

    •Perform the aliveness check by moving your face to follow the moving object on the screen.

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    •When the aliveness check is completed, confirmation page will display “Successful”

    •The pensioner will receive an SMS notification of the successful completion of the process.

    Fingerprint Confirmation

    •The pensioner will need to access a computer system with a fingerprint device for fingerprint capturing.

    •Ensure that .NET Framework Runtime4.7.2 and .NET Desktop Runtime 5.0.7 are installed on the computer.

    •Click here to download the I AM ALIVE SETUP Folder. Extract all files and install on your Computer One after the other.

    •After a successful installation of the ‘I AM ALIVE’ Confirmation desktop application, double-click on the application icon on the desktop to launch the application.

    •Start the “I Am Alive” confirmation process following the 2 steps validation process:

    Enter your pensioner’s number.

    Enter your Bank account number.

    •Do the fingerprint validation by placing any of your finger on the fingerprint device for capturing.

    •If the fingerprint is successfully captured, it will display a “Success” message box.

    •When the aliveness check is completed, the pensioner will receive an SMS notification of the successful completion For support, contact PTAD on +234(02) 09-462-1708; +234(02) 09-462-1709; +234(02) 09-462-1710.

  • Advans La Fayette gets Ag. MD/CEO

    Advans La Fayette gets Ag. MD/CEO

    Advans La Fayette Microfinance Bank has appointed Elvis Oheneba as its Acting Managing Director/CEO.

    Oheneba, a seasoned executive with over 15 years, began his journey with Advans La Fayette in 2012 as a Branch Manager and has since held several positions, including Chief Business Strategy Officer and Head of Network Operations.

    In 2023, he was appointed Deputy CEO and has since championed transformative initiatives that have strengthened our position as a leading microfinance institution.

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    Elvis said: “Assuming this leadership role is a great honour. I remain committed to the mission of Advans La Fayette, to deliver inclusive financial solutions that empower individuals and small businesses across the country. Together with our talented team, we will continue to drive innovation and impact.”

    “Ï will lead the organisation into its next phase of growth, focusing on deepening financial inclusion, enhancing customer experience, and leveraging digital transformation to meet the evolving needs of our clients.

    “Advans La Fayette Microfinance Bank remains steadfast in its vision to be the best microfinance bank in Nigeria, with leadership that reflects its values of integrity, innovation, and inclusion.’’

  • Micro Pension: PenCom unable to capture 30m informal sector workers

    Micro Pension: PenCom unable to capture 30m informal sector workers

    The plan by the National Pension Commission (PenCom) to capture the informal sector under Micro Pension Plan (MPP) and eliminate old age poverty has been dragging.

    The commission is unable to meet its target of capturing 30million informal sector workers with the MPP.

    This is going by the number of contributors recorded on the MPP under the Contributory Pension Scheme (CPS) since when it was launched in 2019.

    As at last September, only 164,031 workers in the informal sector have been registered out of 77 million in Nigeria.

    Yet, fewer than 10,000 of them are active contributors, contrary to the commission’s target.

    The total Pension Contributions received from the contributors since 2019 is N967.1million while only N106.8million was recorded in Quarter 3, 2024.

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    The Commission has been struggling to meet its target of

    PenCom had said the objective of its MPP is to achieve coverage of 30 million people in the informal sector by last year.

    An Update on the Micro Pension Plan in PenCom’s Third Quarter Report read: “A total number of 20,466 Micro Pension Contributors (MPC) were registered during the period under review by 17 Pension Fund Administrators (PFAs) bringing the total number registered MPCs from inception to 164,031 as at 30 September, 2024.

    “Meanwhile, the total pension contributions received from MPCs in Q3:2024 was N106.8million. This brought the total pension contributions made by the MPCs to N967.1 as at 30 September 2024”.

    The Director-General of PenCom, Omolola Oloworaran while speaking at a pension forum said: “Out of the over 77 million informal sector workers, less than 10,000 of them are active contributors under the Contributory Pension Scheme.

    “To boost their contributions and the pension industry’s impact on the Nigerian economy, Oloworaran said that the regulator was not averse to reforms that would help it achieve its goals.

    “PenCom is open for reforms. We’re working with stakeholders across industries to come up with reforms that can help us build the pension industry in terms of product penetration into the informal sector and even the formal sector. I’m aware that some media houses are not remitting pensions anyway, so that’s part of what we are working on. So we’re working on a lot of reforms on the product side, as well as strengthening compliance and holding all players accountable,” she stated.

    Oloworaran however said that they plan to rebrand and restrategise.