The Nation Newspaper

Category: Pension

  • ‘Education on enforcement of third party motor insurance vital’

    ‘Education on enforcement of third party motor insurance vital’

    There is the need for the public, and operatives of the Police saddled with enforcing the third party motor insurance policy to be educated, the Chairman, Corporate Affairs Committee of Nigerian Insurers Association (CAMCONIA), Mr. Segun Bankole, has said.

    In an interview, he said there had been complaints from the public about the way the enforcement was being carried out by police officers, adding that addressing such would erase any misunderstanding between them and motorists.

    Bankole, also the Head of Corporate Communications and Investor Relations for Sovereign Trust Insurance Plc, said: “Quite a number of comprehensive motor policyholders from various insurance companies have been at the receiving end since the enforcement began. They argued that the law enforcement officers do not recognise their comprehensive motor insurance policy and insist that they should go and get the Third party motor insurance cover as directed by the Inspector-General of Police.

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    “For the avoidance of doubt, the IG stated that at least a third party motor insurance policy is required for anyone to have his or her vehicle on the road from February 1. Third party motor insurance offers policyholders indemnity against legal liabilities to third parties for death, injury and property damage while on the other hand, comprehensive motor insurance covers loss or damage from accidents, fire, theft, and third-parties’ liabilities and own damage. In other words, it is valid and relevant under Section 68 of the Insurance Act of 2003 and the Third Party Motor Insurance Act of 1950.

    “The collaboration between the Nigerian Police and National Insurance Commission (NAICOM) in ensuring that motorists have at least the policy is a welcome development, which should earn the trust of Nigerians. We, at CAMCONIA, are advocating more enlightenment on the enforcement and urged motorists to embrace the development and see it as a way forward to protecting the lives and properties of Nigerians when road crashes occur especially for the third parties.’’    

  • NPF Pension, Access ARM Pensions emerge top performers in pension Fund 1 investment

    NPF Pension, Access ARM Pensions emerge top performers in pension Fund 1 investment

    NPF Pensions Limited has emerged as the top performer and clear leader of Fund 1 category of pension fund investment, delivering an impressive 38.87 per cent on return of investment for Retirement Savings Account (RSA) holders, a report has shown.

    The report entitled, “2024 Full Year Pension Funds’ Performance Report’’ released by MoneyCounsellors showed Performance Report: RSA Fund I (Aggressive Growth Fund) – Full Year 2024 (Unaudited). Fund I’s, known for its supposed high-risk, high-return profile, showed varied performances across different PFAs in 2024.

    The report stated that  the performance placed it significantly ahead of other Pension Fund Administrators (PFAs), setting the benchmark for exceptional fund management in 2024.

    Access ARM Pensions came in second, with a solid return of 21.76 per cent, followed by Veritas Glanvills Pensions at 20.14 per cent.

    Both PFAs have demonstrated consistent strategies that have outperformed the average, the report showed.

    Further analyses showed that FCMB Pensions and Leadway Pensure PFA also delivered strong results, with returns of 19.78 per cent and 18.97 per cent, respectively, placing them in the top quartile of performers.

    Average Returns

    The average return for Fund I’s across PFAs stood at 17.78 per cent, as highlighted in the chart below. This provides a benchmark for contributors to assess their PFA’s performance relative to the market. Notably, many PFAs clustered around the average, showcasing stable results.

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    Notable Mentions

    PAL Pensions and Stanbic IBTC Pension Managers achieved returns of 18.58 per cent and 18.19 per cent, just above the average, demonstrating their ability to sustain reliable performance.

    Fidelity Pension Managers, Oak Pensions, and Guaranty Trust Pension Managers followed closely, delivering returns of approximately 18%.

    Underperformers

    While the majority of PFAs delivered solid results, a few fell significantly below the average.

    Tangerine APT Pensions was the lowest performer with a return of 7.01 per cent, which may lead to concerns for contributors seeking growth while Nupemco delivered 10.68 per cent and 12.21 per cent, respectively.

    CardinalStone Pensions, formerly Radix Pensions also reported below-average returns of 14.35 per cent.

    Insights and Takeaways

    According to the report, PFAs like NPF Pensions have benefited from aggressive yet calculated investment strategies going by a review of their asset allocation over the year, capitalising on favourable market conditions to achieve high returns.

    Mid-tier performers such as PAL Pensions and Stanbic IBTC Pensions demonstrate the reliability of balanced investment approaches, appealing to contributors with moderate risk appetites. Underperforming PFAs may need to revisit their investment strategies to align with market trends and enhance returns for contributors.

    What This Means for Contributors

    For contributors in Fund I, the differences in performance highlight the importance of carefully selecting a PFA that aligns with your financial goals and risk tolerance. High performers like NPF Pensions and Access ARM Pensions provide excellent opportunities for significant growth, while lower performers may require re-evaluation of their strategies moving forward.

    Final Thoughts

    MoneyCouncellors stated further that the 2024 performances across Fund I underscores the diverse outcomes of risk-taking in pension fund management.

    As contributors, staying informed and proactive in monitoring your PFA’s performance is crucial to securing long-term financial stability. With us now in 2025, all eyes are on how PFAs adapt their strategies to navigate new market challenges and opportunities.

    For the key economic indicators, inflation (December ‘24) stood at 34.80 per cent, reflecting the ongoing economic pressures, the monetary Policy Rate (MPR) closed the year at 27.50 per cent, whilst a 1-Year Treasury Bill offered a closing yield of 28.20 per cent. The 5-Year FGN Bond (2029) and 10-Year FGN Bond (2034) provided yields of 21.19 per cent and 18.10 per cent, respectively. Amid it all, the year saw significant performance across various indices and financial instruments, while on average, pension funds maintained steady growth, providing steady, reliable returns for investors.

  • Reps to probe political appointees’ severance package

    Reps to probe political appointees’ severance package

    The House of Representatives Committee on Public Accounts has resolved to investigate the processes leading to arrival at severance packages usually approved for political appointees by federal Ministries, Departments and Agencies (MDAs).

    Chairman of the Committee, Bamidele Salam, who made this known, said a five-man sub-committee had been appointed to handle the investigation and make recommendations to the committee for adoption.

    Speaking when the Securities and Exchange Commission (SEC) appeared before the committee to defend the 2020 audit queries from the Office of the Auditor-General for the Federation, Salam stressed that the Public Accounts Committee may have to recommend to the larger House, an amendment to the Establishment Acts of some government agencies.

    He said that boards of some agencies appeared too powerful and approved any amount as severance package for appointees.

    He expressed concerns over the scale of the severance package being paid to board members of some agencies.

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    He said: “If we are paying such an amount to Executive Commissioners who served for just four years, how do we justify compensation for individuals who have served this country for 35 years, including those who have served in war zones and on the front lines?”

    In response to the audit queries pointed out by the Committee, Director General of SEC, Dr. Emomotimi Agama, explained that the severance packages and allowances were paid to former Executive Commissioners who served from 2013 to 2017.

    He explained that at the end of their four-year tenure, they were paid severance packages as approved by the Board for their positions.

    He further disclosed that the Commission operates both the Defined Benefit and Contributory Pension Schemes, managed by three Pension Fund Administrators (PFAs), assuring that all details will be provided.

  • Odetayo is Advans Nigeria’s Deputy CEO

    Odetayo is Advans Nigeria’s Deputy CEO

    Advans La Fayette Microfinance Bank has announced the appointment of Mrs. Elizabeth Odetayo as its Deputy Chief Executive Officer (DCEO), with effect from February 1.

    Prior to her promotion, she served as the Chief Financial Officer (CFO).

    Chief Executive Officer of the bank, Gaetan Debuchy, said: “Elizabeth’s appointment as Deputy CEO is a testament to her dedication, expertise, and outstanding contributions to our bank. Her deep understanding of our operations and her commitment to our mission position her to help steer the bank toward achieving its strategic goals. We are confident that her leadership will further strengthen our ability to deliver impactful financial services to our clients.

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    “The appointment of Mrs. Odetayo marks an exciting new chapter in the bank’s journey toward achieving its vision.

    “The promotion of Mrs. Odetayo and over 130 staff members last year was a demonstration of the bank’s commitment to empowering its employees, fostering a culture of excellence, and driving productivity against all odds. By investing in internal talent, Advans continues to build a strong, motivated workforce that is equipped to deliver on its mission and vision.’’

    Mrs. Odetayo said: “I am honoured to take on this new responsibility and to continue contributing to the growth and success of the bank. I look forward to collaborating with our talented team to drive innovation, enhance customer experience, and expand our reach to create lasting value for the communities we serve.’’

  • Premium Pension gets new ED

    Premium Pension gets new ED

    Premium Pension Limited has announced the appointment of Dr. Ibrahim Barhama Boyi as the Executive Director, Business Development, North and Strategy.

    In a statement, the company’s Head, Corporate Strategy and Communications, Anji Silas Achi, stated that Boyi, whose appointment took effect from January 27, brings with him a wealth of experience spanning over two decades across the telecoms, financial, and housing/mortgage sectors.

    The company stated: “Dr. Boyi began his professional career in the telecommunications sector with Sagem S.A in 2002 before joining MTN Nigeria Communications Limited in 2003, where he contributed significantly to the Financial Operations Department

    . In 2006, he transitioned into the financial sector with Premium Pension Limited, serving as the Unit Head of Compliance. His expertise in investment analysis led him to the National Pension Commission in 2007, where he worked in the Risk Management Department.

    “Further diversifying his experience, Dr. Boyi moved to the Federal Mortgage Bank of Nigeria (FMBN), where he held various strategic positions, including Personal Assistant to the Managing Director/CEO and also work with the Special Assistant to MD/CEO on Investment and Portfolio, Head of the Training (Employee Development and Learning Management), Head of Insurance and a Credit Analyst in Loans Production Department. His broad knowledge and strategic insight have been instrumental in shaping policies and driving investment growth within the financial sector.

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    “Dr. Boyi holds a Bachelor of Science degree in Business Administration from the University of Abuja, a Master of Business Administration (MBA) from Bayero University, Kano (BUK), and a Doctorate in Business Administration (DBA) in Housing Finance from Nottingham Trent University, U.K., which he obtained in 2020. Additionally, He is a Fellow of the Institute of Mortgage Brokers and Lenders, an Associate of the Institute of Capital Market Registrars, an Associate Member of the Institute of Cost Management Accountants, a Member of the Institute of Credit Administration, and a Member of the Institute of Project Managers. His academic background, combined with his extensive industry experience, positions him as a valuable asset to Premium Pension Limited.

    “As he assumes his new role, Boyi is expected to lead strategic initiatives that will enhance business development in the Northern region while strengthening the company’s overall strategic direction. Premium Pension Limited is confident that his leadership will contribute to the continued growth and success of the organisation,”the statement read.

  • AIICO harps on importance of third party motor insurance

    AIICO harps on importance of third party motor insurance

    AIICO Insurance Plc has reinforced the importance of securing valid insurance coverage as a safeguard against unforeseen liabilities as the enforcement of third-party motor insurance intensifies.

    Its Managing Director, Babatunde Fajemirokun, in a statement said the company has further simplified access to third-party motor insurance, making it easy for vehicle owners to obtain coverage within minutes.

    He said anyone could sign up for a valid policy via the company’s website, ensuring compliance with the law while securing financial protection against unforeseen accidents.

    He pointed out that the enforcement is not merely a regulatory requirement but a necessary step toward creating safer roads and a more responsible driving culture.

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    He said: “By ensuring compliance, authorities are taking a proactive approach to reduce the financial and emotional burdens that accidents impose on innocent third parties. The message is clear: having valid third-party motor insurance is not just a legal obligation, it is a vital safety net for all road users.

    “Uninsured vehicles on Nigerian roads pose significant risks, with countless road users facing financial and emotional distress each year due to accidents involving vehicles without valid insurance. Sometimes, people have to pay for medical bills, car repairs, or other losses after a car accident. If everyone involved had insurance, it would help cover these costs and reduce the financial burden. But that doesn’t always happen. The situation is worse when the person responsible for the accident does not have valid insurance to compensate the victims.

  • PTAD to pay N32,000 increment arrears

    PTAD to pay N32,000 increment arrears

    The Executive Secretary,  Pension Transitional Arrangement Directorate (PTAD), Tolulope Odunaiya, has reiterated the Directorate’s commitment to implement the N32,000 pension increment for pensioners under the Defined Benefit Scheme (DBS) when funds are released.

    Odunaiya said last month’s payments did not include the increment because their budget had not been released.

    She, however, assured that PTAD was working with relevant agencies to ensure the increment was implemented and arrears paid.

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    She explained that PTAD had paid four months’ arrears of last August to November to Civil Service Pension Department (CSPD) pensioners and five months arrears of August to December, last year to pensioners of Customs Immigration and Prison Pension Department (CIPPD), Police Pension Department (PPD), and the university sector of Parastatals Pension Department (PaPD) through strategic funds management.

    She noted that the Directorate, through this strategic funds management initiative, had  earlier cleared the 20 per cent and 28 per cent pension increment to pensioners, and promised that PTAD will continue to prioritise pensioners’ needs.

  • PTAD: Resolving pensioners’ issues

    PTAD: Resolving pensioners’ issues

    OLUKOGBON: Good day, thanks for the discharge of your duties. I am a Nitel/Mtel pensioner. I did my verification exercise since September 3, 2018, at 10:23:17hrs but up till date, I have not been put on payroll. I have written several emails, I have been to the PTAD office in Race course for more than 20 times, only to be told that my documents are okay. Instead of PTAD to pay me my pension, there is a message they do send to me every quarter of the year, which I will forward to you. I count on your assistance to help me get to the root of this matter. Best Regards.

    ABE: Hello, my name is Abe and I am from Ado Ekiti. Two of our members have been trying to do their ‘I am Alive’ for many times but they can’t get their eyes in and the fingerprint is not working. What can they do? Their names are Timothy and Femi

    AYONGO: I have not yet been paid my minimum wage arrears. I am a retiree under PTAD.

    OLAJIDE: Good day, I am sending you this message on behalf of Pa Olajide a 94 year old pensioner. We have submitted all the documents requested at Ibadan PTAD office. We are asking for a mobile verification. Pa Olajide has not been paid for the past nine months. Please, do help us.

    JIBRIL: I would like to once again refer to The Nation newspaper publication of 15th June 2022, page 26 paragraph 4, 31st January 2024 page 11 paragraph 8 and 11th September 2024 page 8 paragraph 1 respectively in which I am yet to be paid my gratuity despite my long patience. I implore the newspaper to relay my message and request PTAD to do the needful on payment of my gratuity for God sake. Thanks for your good work. Jibril from kogi state.

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    DMBIEM: I am DMBIEM, an actuary. I want answers. PTAD from 2013 to 2024 did interesting stories. They said N610billion payouts were from 2015 to 2021 and pensioners 226,328 as at the period. In 2022 alone, 226,693 while PTAD pensioners received N754billion. The 2024 story was incomplete: pensions 2025 would be N63.8billion, no pensioners. FGN Budget for Fiscal Year 2025 figure cited N46.020trillion, WagesN7.476 trillion 16.2 per cent Debts Refunds N16.330 trillion 35.4 per cent All and SundriesN21.578 trillion 46.9 per cent PTAD PensionsN63.6bn 0.1 per cent PENCOM Personal Savings Accounts Assets N14.990 trillion AVERAGE N53.920million from PSA Assets divided by 278000 all alive cases. It means HOS, SIWC & PTAD Offices, with all due regards, are not helping. They conspire and make pensioners to be ashamed of themselves 0.1 trillion Budget. I challenge all three above. PTAD especially should move HOS & SIWC to make pensions meaningful. I hate the starvation pensions paid 2004 till date. DMBIEM.

  • PTAD assures FEPPAN, FMBN/FMFL of assistance

    PTAD assures FEPPAN, FMBN/FMFL of assistance

    The Pension Transitional Arrangement Directorate (PTAD) has assured the Federal Parastatals and Private Sector Pensioners Association of Nigeria (FEPPPAN) and Federal Mortgage Bank of Nigeria/Federal Mortgage Finance Limited (FMBN/FMFL) of its commitment to improving the pension administration system and addressing their concerns.

    PTAD gave the assurance when the representatives of FEPPPAN and FMBN/FMFL paid courtesy visits to Directorate headquarters in Abuja.

    The delegation was welcomed by the PTAD Executive Secretary (ES), Tolulope Odunaiya, and her team.

    The two meetings by FEPPPAN and FMBN/FMFL were unified in their purpose which was to reaffirm their commitment and willingness to co-operate with the Directorate to improve the welfare of DBS pensioners.

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    It was also a medium for the stakeholders to welcome the Executive Secretary, Tolulope Odunaiya, and express their gratitude for the prompt payment of the December 2024 pension.

    Both meetings focused on crucial matters including the payment of arrears, back-end computation (BEC), verification of pensioners in the diaspora, status of gratuity payment, and payment to the Next of Kin of deceased pensioners. The representatives emphasized the need for streamlined processes and to ensure pension payments and benefits without unnecessary delay.

    In her response, the ES thanked the delegates for their visit and acknowledged the pension union and association’s role in advocating the benefits of the DBS pensioners.

    She said: “We assure you of our commitment to improving the pension administration system and addressing their concerns.

    “We also reiterate our commitment to fostering a more responsive and effective pension administration system for the benefit of all pensioners.’’

  • ‘Fed Govt’s retirees must wait for accrued rights payment to get pension’

    ‘Fed Govt’s retirees must wait for accrued rights payment to get pension’

    • Access to lump sum raised to 50%

    The National Pension Commission (PenCom) has said Federal Government’s retirees should wait for accrued pension rights payment before they can receive their pension.

    Thousands of workers are being owed for as long as three years after retiring.

    PenCom Director-General, Ms. Omolola Oloworaran, who stated this at a forum in Lagos, said allowing retirees to access their Retirement Savings Accounts (RSAs) without the payment of accrued pension rights might hinder the government from releasing the funds.

    She explained that agitations on the non-payment of the accrued rights often help in pressuring the government to execute its responsibility to retirees, adding that even retirees might be silent having accessed their RSA without accrued rights.

    She further stated that the Pension Reform Act PRA (2004) does not provide for retirees to access their RSA without the components of accrued pension rights.

    Oloworaran said PenCom has continued to face delays in the payment of accrued rights, noting that N44 billion was approved under the 2024 budget to settle accrued pension rights for retirees from March to September 2023.

    She further stated that PenCom is working with the Federal Government to ensure that retirees receive their benefits promptly.

    In another development, the Commission has lifted the restriction of lump sum access to a maximum of 50 per cent of RSA balance to enable retirees with sufficient funds to obtain a significant lump sum amount.

    PenCom stated this in Guidance Note on the Revised Programmed Withdrawal Template Version 2 to Pension Fund Administrators.

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    PenCom stated that retirees can now enjoy a lump sum from the balance standing to the credit of their RSA, provided that the amount left after that the lump sum withdrawal shall be sufficient to procure an annuity or fund Programmed Withdrawal that will procure an amount not less than 50 per cent of their yearly remuneration as at the date of retirement.

    It said the revised Programmed Withdrawal template also removed the retirement age limitation and now accepts 65 years and above to accommodate the broader categories of retirees in the various sectors.

    PenCom submitted that the new rule applies only to employees who retire under the Contributory Pension Scheme (CPS) and are yet to be programmed as at the release date of the revised Programmed Withdrawal template version 2.

    It said it also covers retirees who choose the Programmed Withdrawal as their preferred mode of retirement benefit payment or Retiree Life Annuity (RLA) option at retirement as at the release date of the programmed withdrawal template version 2.

    PenCom stated that the guidance note seeks to provide PFAs with a standard procedure for calculating retirement benefit such as lump sum, monthly/quarterly pensions and pension arrears, using age, gender, final salary, the RSA balance, pension arrears and the A55 adjusted mortality table for eligible retirees.