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Tag: PENOP

  • PenOp hosts cancer awareness session for young professionals

    PenOp hosts cancer awareness session for young professionals

    To promote knowledge sharing and overall well-being in the pension industry, the Pension Fund Operators Association of Nigeria (PenOp) has held a Knowledge Sharing Session (KSS) focused on cancer awareness for young professionals.

    The two-hour event was aimed at sensitising participants to the risks in cervical and prostate cancers, and importance of early detection.

    Read Also: NHIS enrolments hit 20 million, says DG

    Attendees were urged to adopt preventive health practices and undergo regular health screenings.

    The session was facilitated by Dr. Oluwatimilehin, a medical expert, who provided practical insights into the causes, prevention and early detection of cancer. Buy vitamins and supplements

    He explained the basic differences between malignant and benign tumors, stressing the importance of regular checkups and prioritising health, particularly among working professionals.

    Focusing on cervical cancer, Oluwatimilehin noted that it is the second most common cancer in women globally and is primarily caused by high-risk HPV infections.

    He urged preventive measures like HPV vaccination for children aged eight–14, Regular Pap smears; safe sex practices; and healthy lifestyle habits.

    On prostate cancer, he explained that although the disease often progresses slowly, it can be life-threatening, if not detected early.

    He highlighted key risk factors such as age, genetics, and lifestyle, and recommended that men undergo regular Prostate-Specific Antigen (PSA) tests; and Conduct Digital Rectal Exams (DREs) from age 40 or earlier if at high risk.

    The session also addressed common myths, including the belief that frequent sexual activity prevents prostate cancer.

    Oluwatimilehin said while some natural remedies can support general wellness, they should not replace proper medical care.

    He responded to questions on breast cancer screenings, genetic testing, and the importance of annual comprehensive health assessments for both men and women.

  • Investment, non-interest banking practitioners need dialogue on ethical finance, says PenOp

    Investment, non-interest banking practitioners need dialogue on ethical finance, says PenOp

    There is an urgent need for dialogue between investment and non-interest banking practitioners to close the information gap and encourage wider participation in ethical finance options that avoid usury.

    Besides, inclusivity and ethical investment are crucial.

     Against this background, stakeholders in the industry convened an Investment Knowledge Session themed “Demystifying non-interest Shari’ah-compliant investments” in Lagos.

    Read Also: PenOp unveils pension fund managers’ sentiment report

    The session focused on raising awareness about non-interest financial products, addressing misconceptions, and exploring the increasing relevance of Fund VI under the Multi-Fund Structure of industry.

    Chief Executive Officer, Pension Fund Operators Association of Nigeria (PenOp),Oguche Agudah, recalled that earlier in the year, the regulator had inaugurated the Pension Industry Non-Interest Advisory Committee (PINAC).

  • PenOp appoints Ifeanyi-Okoro as COO

    PenOp appoints Ifeanyi-Okoro as COO

    Pension Fund Operators Association of Nigeria (PenOp) has appointed Anthonia Ifeanyi-Okoro as its Chief Operating Officer (COO).

    In a statement, PenOp said Ifeanyi-Okoro has over 15 years’ experience in business transformation, operations, and strategic delivery.

    The statement read: “She has worked in a range of high-impact roles across business member organisations and central government institutions in the United Kingdom. Her career has seen her lead and manage major portfolios, programmes, and stakeholder engagements—skills that are critical to the evolving needs of the Nigerian pension industry.’’

    Read Also: PenOp: new mortgage policy will catalyse pension, boost economy

    Chief Executive Officer, PenOp, Oguche Agudah, said: “Ifeanyi-Okoro’s experience working with diverse and influential stakeholders, in the private and public sectors, makes her a valuable addition to the PenOp team. Her appointment is a strategic step toward strengthening our organisation to better support the pension industry and deepen its role in Nigeria’s economic growth.’’

  • PenOp unveils pension fund managers’ sentiment report

    PenOp unveils pension fund managers’ sentiment report

    The Pension Fund Operators Association of Nigeria (PenOp) has unveiled this year’s Pension Fund Managers Sentiment Report, which provides insights into the investment climate in Nigeria from the perspective of chief investment officers (CIOs) managing pension funds.

    The report, serving as a barometer for the broader financial markets, highlights key economic indicators, market trends, and the evolving regulatory environment, PenOp submitted.

    Macroeconomic Landscape

    The Nigerian economy has been experiencing a mixed performance in the year, as evidenced by the country’s gross domestic product (GDP) growth of 2.98 per cent in Q1 2024, up from 2.31 per cent in the same period last year. This modest growth has been primarily driven by the services sector, contributing 58.04 per cent of total GDP and growing 4.32 per cent year-on-year.

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    The agricultural sector, although showing signs of recovery, grew by only 0.18 per cent. The industrial sector, which has lagged in previous years, grew by 2.19 per cent, a significant jump from the 0.31 per cent recorded in 2023.

    A dominant feature of the Nigerian economic climate has been persistently high inflation. In the first half of 2024, inflation peaked at 34.19 per cent in June.

    The inflationary pressures have been exacerbated by higher food prices, currency depreciation, and increased consumer spending, with food inflation reaching 40.87 percent by midyear.

    The Central Bank of Nigeria (CBN) responded with aggressive monetary tightening, raising the Monetary Policy Rate (MPR) to 26.75 per cent in July 2024, up from 18.75 per cent in May 2023.

    While these actions have helped to slow inflation, concerns remain that high borrowing costs could stifle business activities and hinder investment.

    Investment Sentiments: A mixed outlook

    The report highlights that pension fund managers are closely monitoring the macroeconomic indicators to guide their investment decisions. Over 60 per cent of fund managers stated that their investment levels would be dictated by these indicators, particularly inflation and interest rates.

    Pension fund managers have responded to the CBN’s hawkish stance by increasing exposure to government securities, which now represent over 63 per cent of total pension fund assets. Despite macroeconomic headwinds, fund managers expressed optimism about future investments.

    One hundred per cent of respondents reported intentions to increase their investments in the upcoming quarter, driven by growing assets under management (AUM).

    However, the overall sentiment towards the economy remains bearish, with more than half of the managers expecting no improvement in key economic indicators over the next quarter.

    Sector-Specific Outlooks

    Equity market

    Despite a 34 per cent growth in the equities market in the first half of 2024, fund managers exhibit a cautious stance towards equities. While the market has performed well, some managers have opted to shift to treasury bills due to concerns over future market volatility.

    Only 36 per cent of managers are actively looking to increase their exposure to equities, while 28 per cent are considering reducing their equity allocations

    Fixed-Income securities

    Pension fund managers maintain a strong preference for fixed-income securities, with 64% of managers indicating that they wil increase their allocation to this asset class.

    Government bonds continue to dominate as a safe haven amid economic uncertainty. This trend is expected to persist as inflation cools and interest rates potentially decline later in the year.

    Infrastructure

    Infrastructure investments are gaining traction, with 73 per cent of fund managers intending to increase their allocation towards this sector.

    The growing pipeline of bankable infrastructure deals and government-backed projects are driving this interest, positioning infrastructure as a critical component of pension fund portfolios.

    Alternatives

    An increasing appetite for alternative investments is emerging, with 64 per cent of managers looking to expand their exposure.

    However, there is a call for more specialized funds to cater to the growing demand for alternative asset classes such as private equity, venture capital, and real estate.

    Key concerns and risks

    Market Volatility

    Market volatility remains a significant concern for fund managers, with only 18 per cent expecting improvement in volatility over the next quarter. Factors such as exchange rate uncertainty and the high interest rate environment continue to weigh on the market.

    A substantial 36 per cent of respondents expect further market volatility, attributing it to foreign exchange concerns and high borrowing costs.

    Political uncertainty

    The current political climate has added a layer of uncertainty to the investment landscape. Political protests and industrial strikes, couped with a cost of living crisis, have made fund managers more cautious about investments in the real sector.

    The majority expect political uncertainty to persist, potentially impacting economic recovery and investor sentiment.

    Optimism on regulation

    Despite the challenges, there is optimism surrounding the ongoing regulatory review by the pension industry’s regulatory body. Many fund managers expect more investment-friendly guidelines to emerge, which could stimulate increased investments across various asset classes.

    However, some managers are concerned that the regulatory review process may stretch into the following year, delaying its positive impact.

    The Pension Fund Managers Sentiment Report offers a nuanced view of Nigeria’s investment landscape in 2024.

    While inflation and high interest rates present significant challenges, pension fund managers remain optimistic about growth in certain sectors, particularly infrastructure and alternative investments.

    The mixed sentiment towards equities and the strong preference for fixed-income securities reflect the cautious approach fund managers are adopting in response to macroeconomic uncertainty.

    As the regulatory landscape evolves and economic conditions stabilize, pension fund managers will likely continue to play a critical role in shaping Nigeria’s financial markets, making this biannual index a valuable tool for stakeholders across the investment spectrum.

  • Bajowa is PenOp president

    Bajowa is PenOp president

    The Managing Director/Chief Executive Officer, FCMB Pension Limited, Christopher Bajowa,  has been appointed the new President of President of Pension Fund Operators Association of Nigeria (PenOp).

    His election followed the retirement of Mr. Umar Mairami.

    He is expected to complete the term of Umar, which will end in March 2026.

    Bajowa said he would continue to uphold the ideals of the industry, ensuring that the RSA holders are prioritised.

    Read Also: PenOps pay 1.27m retirees N2.72t benefits

    He is committed to continue the work of ensuring that pensions positively affect every aspect of the economy.

    Chief Executive Officer, PenOp, Oguche Agudah said the smooth transition shows the strong governance within the association and the commitment to sound leadership and respectful relationships between the pension operators geared towards the overall aim of ensuring that every Nigerian benefits from the industry.

    He said it was evident that the industry has positively touched many aspects of Nigeria’s life, ranging from the public fiscal management, equity market, infrastructure development, noting that the industry is set to do more in the coming years.

  • PenOps pay 1.27m retirees N2.72t benefits

    PenOps pay 1.27m retirees N2.72t benefits

    Pension Fund Operators Association of Nigeria (PenOp) has paid 1.27 million retirees N2.72 trillion benefits since the inception of the Contributory Pension Scheme (CPS), the Head of Surveillance Department PenCom, National Pension Commission (PenCom), Ehimeme Ohioma, has said.

    Ohioma, who spoke at the  PenOp media parley in Lagos, stated that the pension fund hit N17.66 trillion as at October, this year.

    So far, he continued, 1,183 Retirement Savings Account (RSA) holders have accessed N13 billion as pension mortgage finance and that 17,376 retirement savings account holders have transferred N356 billion from one Pension Fund Administrator (PFA) to another under the RSA transfer system.

    Ehimeme maintained that PenCom is putting finishing touches to foreign currency denominated investments guidelines that would enable PFAs earn real return on investment.

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    PenOp President, Olumide Oyetan said the CPS remains one of the greatest national policy from democracy, stating that before the commencement of the CPS, retirees were subjected to old age poverty as they were unable to get their pension at retirement.

    He said: “The CPS is unique. Due to the safe valves, checks and balances, it ensured by the tripod structure which are the regulator, PFAs and Pension Fund Custodians (PFCs). We call on the government and public to sustain their faith on the CPS, which for the past 19 years, has continued to thrive without any incident of fraud.

    “On our side, we would continue to innovate and comply with stipulated rules in offering quality services to contributors and retirees.’’

    Chief Executive Officer Pension Fund Operators Association of Nigeria, Oguche Agudah, said next year the industry would experience great transformations going by innovations being worked on by PenCom and operators.

    He noted that the event was organised to keep reporters abreast of strides recorded in the pension industry and to also interact with them on how to improve service delivery.

  • PenOp: micro pension’ll boost economy

    Micro pension billed to kick off before the end of this year will boost the economy, Pension Fund Operators Association of Nigeria (PenOp), has said.

    Its President, Mrs Aderonke Adedeji, said it will reduce the level of poverty associated with the informal sector and old age in the country.

    Micro pension is an arrangement for the provision of pension and retirement benefits to the low income, self-employed and persons operating in the informal sector.

    Mrs Adedeji who is also the Managing Director, Leadway Pensure PFA Limited spoke on: “Exploring the Micro Pension Concept” at the just concluded conference on insurance and pension in Lagos.

    She said a key policy issue in developing countries and an imperative in the countryare the planning and execution of micro pensions which is a missing link in increasing pension coverage in the country.

    She said over 90 per cent of the population in sub-Saharan Africa and South Asia are not covered by any pension arrangement due to general unemployment, low incomes, poor saving culture and above all pension arrangements that only favour workers in the formal sector.

    She further said the World Bank on the other hand estimates the size of the informal labour market to be between four and six per cent in the high-income countries and over 50 per cent in the low-income countries.

    She said what is needed for the micro pension plan is a unique regulatory framework to govern the scheme which the National Pension Commission (PenCom) is addressing.

    The OenOp chief also stressed the need for registration, investment of funds, risk management, membership, withdrawal of benefits and taxation incentives for participants that will be captured under the plan.

    She said: “The Pension Reform Act (PRA 2014) Section 2 (3) paved the way for micro pension.

    “Employees of organisations’ with less than three employees as well as self-employed are entitled to participate under the scheme in accordance with guidelines issued by PenCom. This group covers the informal sector which plays an indispensable role in Nigeria and world economies.

    “The informal sector plays significant role in micro pension as it generates jobs, amplifies entrepreneurial undertaking, reduces unemployment and underemployment, alleviates poverty and promotes economic growth.”

    According to her, the country  has an adult population of 96.4 million, out of which 50.8 per cent male and 49.2 per cent female with 63.9 per cent residing in the rural areas. “Meanwhile, 56.2 million adults representing 58.3 per cent of the adult population are under 35years while 21.8 million adults representing 22.6 per cent of the adult population have no formal education. 18.4 million adults representing 19.1 per cent of the total adult population have farming as their main source of income 18.9 million adults representing 19.6 per cent of the total adult population get their income from own business,” she added.

    Some of the attributes of the informal workers that isolate them from formal pension arrangements and  create a need for separate well thought out design are continuous job changes; likely opportunities to self-employment and not on payrolls in most cases.

    Others, she said, are temporary nature of employment contracts; educational status; unfamiliar with the workings of pensions and limited experience in dealing with formal financial institutions.

  • PenOp, NSE strategise on multi-fund structure

    The Pension Fund Operators Association of Nigeria (PenOP) members have met the Nigerian Stock Exchange (NSE) to discuss how the capital market can be developed, especially in light of the Multi-Fund Structure that was  kicked off by the pensions industry recently.

    PenOp President, Mrs Aderonke Adedeji made this known when she led a delegation of PenOp members to ring the Closing Gong on the Trading Floor.

    She said the two organisations who are among the strongest players in the Nigerian financial sector also discussed other partnership opportunities.

    The meeting was attended by members of PenOp’s Executive Committee led by the President, Mrs. Ronke Adedeji and members of the NSE’s Senior Management Team led by Ms. Tinu Awe, Executive Director, Regulations.

  • PenOp: contributors’ change of PFAs to happen soon

    •Association gets first woman president

    Lack of biometrics has been hindering the implementation of the transfer window platform that will enable pension contributors and retirees change their Pension Fund Administrator (PFAs), Pension Fund Operators Association of Nigeria (PenOp) has said.

    This disclosure is coming on the heels of the emergence of the association’s first female President, Mrs. Aderonke Adedeji, at the sixth Annual General Meeting (AGM) of PenOp.

    Mrs Adedeji, who is also the Leadway Pensure Managing Director, spoke during a chat with reporters said she would further drive pension growth during her tenure.

    She assured contributors under the Contributory Pension Scheme (CPS) that the transfer window would soon be opened.

    According to her, the transfer window is a burning issue and the major challenge has been the lack of biometrics, noting, however, that the association is working  with the National Pension Commission (PenCom) to resolve the issues that will enable the takeoff of the transfer window.

    She said: “We are optimistic that it will be resolved very soon. The federal government has issued instructions that everybody should consolidate in terms of identification.

    “So, there is work going on and we have a meeting next week for discussion on biometrics that will set the foundation for us to begin to talk about transfer window. So, I see progress in that area shortly.”

    Section 13 and Section 106 subsection 1 to 4 of the Pension Reform Act 2004 as repealed by PRA 2014, stipulates that a contributor will be allowed to move his or her RSA account from one PFA to another in not more than once in a year.

    “Section 106 stipulates that an employee or beneficiary of a (RSA), who is dissatisfied with a decision of the PFA or employer in respect of pension matters under this Bill, may request, in writing, that such decisions be reviewed by PenCom with a view to ensuring that such decision is made in accordance with the provisions of this Bill or any regulations made,”she said.

    Aside from Mrs Adedeji, other members of PenOp executives are Vice President, Akeeb Akinola (Managing Director, Shell Closed Pension Fund Administrator); Head, Branding Committee, Wale Odutola (Managing Director, ARM Pensions); Head, Legal & Regulatory Committee, Dr. Hamza Sule Wuro Bokki (Managing Director, NPF Pensions); Head, Technical Committee, Dapo Akisanya (Managing Director, AxaMansard Pensions); and Treasurer, Chinedu Ekeocha (Managing Director, Diamond PFC).

     

  • How pension lump sum is determined, by PenOp

    Pension computation is based on a standard template  issued by the National Pension Commission (PenCom), the Pension Fund Operators Association of Nigeria (PenOp), umbrella body for Pension Fund Administrators (PFAs), has said.

    PenOp said contrary to claims by some individuals that PFAs use their discretion to determine the lump sum paid to retirees, they use the template issued by PenCom.

    Chief Marketing Officer, Premium Pension Limited, Kabir Tijjani, while speaking at the just-concluded  PenOp Annual Media Retreat in Abeokuta, the Ogun State capital, stated that Section 7 (1) (a) of the Pension Reform Act (PRA) 2014 allows for lump sum to be paid to a retiree provided that the amount left after the lump sum withdrawal will be sufficient to fund a programmed withdrawal over expected life span of not far from 50 per cent of his/her yearly remuneration as at date of retirement.

    He said this, therefore, makes computed monthly pension drawdowns over an expected life span to be a first charge on the RSA balance while the residual will be paid as lump sum.

    He further explained that computation of the lump sum payment and periodic (monthly/quarterly) pension withdrawal is based on a Standard Programmed Withdrawal Template/Model issued by the National Pension Commission (PenCom) to all Pension Fund Administrators.

    He also said the inputs/variables in the Programmed Withdrawal Template (PWT) for the computation are based on the new definition of Annual Emolument (ATE) using the most revised template for calculating lump sum benefit released by PenCom.

    On why there are differences in the benefits paid to retirees, he noted that the amount of monthly pension or lump sum varies for individual retires due to age at retirement, stressing that two retirees with different ages and other variables being equal, the older retiree will get slightly higher monthly pension than the younger retiree because his expected life span is shorter.

    He said: “The mortality table assumes that women live slightly longer than men. Therefore, a male and female retiree with the same age and other variables being equal at retirement will definitely have differences in their pensions as the template makes provision for the extra years that the female retiree is expected to live.

    “Two retirees with different RSA balance, with other variables remaining the same as retirement, will result to higher monthly pension and (or) lump sum for the retiree with the lump sum and higher RSA balance while the reverse is the case for the retiree with the lesser RSA balance. Differences in other variables remaining constant will cause differences in monthly pensions and lump sum receivable.

    “Based on individual peculiarities, one can choose between zero lump sum and/or maximum lump sum or any amount in between is equal to or lower than the recommended/maximum lump sum in the template in order to boost his monthly pension. Delay in payment of benefits is often caused by none submission of required documents, incomplete documents or error in beneficiary name, technical hitch like server downtime or bank network glitch.

    “Differences in RSA balances are as a result of size or accrued rights portion paid into RSA due to grade level and step as at June, 2004; total monthly contribution is based on individual grade level/ structure from July 2004 to date of retirement and the growth of the investment income is based on the duration in which the contributions stayed in the RSA,” he added.