FG launches pension industry leadership council

…SGF, Edun, Cardoso, Oloworaran chart new course for pension system

The Federal Government on Thursday inaugurated the Pension Industry Leadership Council (PILC) in Abuja, a high-level body designed to strengthen Nigeria’s contributory pension system, lower operating costs, and mobilise long-term capital for economic development.

The council was unveiled at a ceremony attended by the Secretary to the Government of the Federation (SGF), Senator George Akume; the Finance and Coordinating Minister of the Economy, Wale Edun; the Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso; and the Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, alongside other key stakeholders.

The PILC, which stakeholders described as a landmark step in pension reform, will function as a permanent multi-stakeholder advisory platform to unify the industry’s voice, accelerate growth, and align pension operations with national development priorities.

It will meet quarterly to deliberate on policy, governance, and operational matters affecting the sector.

Driving reforms and expanding coverage, the council’s key objectives include strengthening governance standards, expanding coverage through micro-pension schemes for informal sector workers, diversifying asset portfolios, and building stronger legislative support for reforms.

It is also expected to lower costs via shared back-office services, introduce joint risk management practices, and establish business continuity standards across the industry.

Unveiling the council’s charter, SGF Akume described the initiative as a covenant of trust, accountability, and collaboration” between government, regulators, operators, and contributors.

He stressed the need to expand pension coverage, leverage digital platforms, and prudently mobilise pension assets now estimated at over ₦18 trillion to finance infrastructure, energy, housing, and other critical projects.

“Security for every Nigerian and accountability from government are not negotiable. We must scale up micro-pensions to bring millions in the informal sector under the safety net, while safeguarding retirement savings,” Akume said.

Delving into PenCom’s vision and innovation agenda, PenCom DG Omolola Oloworaran hailed the inauguration as a milestone in Nigeria’s pension reform journey, which began with the Pension Reform Act of 2004.

She emphasised that pensions must remain a “promise kept,” underpinned by innovation, transparency, and the highest fiduciary standards.

“We must innovate through digital platforms, integrated systems, and new pension products that deliver greater value to contributors and retirees alike. Strong governance is the lifeblood of pension sustainability,” she said.

Finance Minister Edun underscored the importance of pension funds as a pool of long-term capital to support economic growth.

He reaffirmed the government’s policy of no taxation on pension contributions, adding that pension investments must balance safety with developmental impact.

“The Nigerian pension industry is one of the best-performing sectors in the country. With discipline and innovation, pension funds can play an even greater role in financing roads, housing, power, and other critical infrastructure,” Edun said.

Stressing stakeholder confidence and collaboration, CBN Governor Olayemi Cardoso praised the inclusive design of the council, noting that joint decision-making enhances compliance and builds stakeholder confidence.

Drawing parallels with Nigeria’s successful payment system reforms, he said the pension industry was now positioned for a similar breakthrough.

The highlight of the inauguration was the unveiling and signing of the Pension Industry Leadership Council Charter, committing stakeholders to reforms in governance, compliance, coverage, and asset mobilisation.

The charter also calls for cross-sector collaboration with labour unions, civil society, academia, and financial institutions to safeguard the sustainability of the pension system.

With pension assets now exceeding ₦18 trillion, stakeholders expressed optimism that the new council will restore confidence, broaden access to retirement security, and mobilise capital that can transform Nigeria’s economy.

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