Amending PRA 2014 ‘ll scare foreign investors – PenCom

From left: Acting Director General National Pension Commission, Mrs. Aisha Dahir-Umar and Director Corporate Service Department, Pension Transitional Arrangement Directorate, Sulayman Shelleng at the event.

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Chuks Udo Okonta

The exemption of some agencies of Government would result in loss of confidence in the pension reform and other reform initiatives of Government.

This was parts of submissions by the National Pension Commission (PenCom) at the public hearing to amend pension reform act 2014 in Abuja. The pension regulator said if the amendment is allowed, the growing culture of national savings built within the last decade would be destroyed, adding that due to the successful implementation of the pension reform, the discipline with which the industry players have been discharging their responsibilities and the resultant impact on the Nigerian economy, foreign investors have invested heavily in some major Pension Fund Administrators.

“There are still some expressions of interest by foreign investors to obtain stakes in the pension administration business in Nigeria. Indeed, the private sector, including these foreign investors in the Nigerian financial sector and the Nigerian economy, would question the commitment of Government to the pension and other reforms due to such policy reversals,” its Acting Director-General, Mrs. Aisha Dahir-Umar, said.

Former Board Member National Pension Commission (PenCom) and Director, Centre for Pension Right Advocacy Mr Ivor Takor, MNI, said Bill if passed into law, will bring un-intended outcomes, that may negatively affect industrial relations in the country and the economy due to the following: Other public servants through their unions, may commence agitations including strike actions to get governments, federal and states to take them out of the CPS.

He noted that the pension industry within a short period of time has transformed from a non existent industry into an industry that is looked at for infrastructure and economic development, stating that if the bill is passed, the investable fund of over N6.7 trillion will be thrown into crisis that will affect the economy.

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