WELCOME REMARKS BY MR. M. K. AHMAD, DIRECTOR-GENERAL, NATIONAL PENSION COMMISSION, AT THE WORKSHOP ORGANISED FOR BUSINESS EDITORS AND FINANCE, INSURANCE LABOUR CORRESPONDENTS AT REIZ INTERCONTINENTAL HOTEL ABUJA,

WELCOME REMARKS BY MR. M. K. AHMAD, DIRECTOR-GENERAL, NATIONAL PENSION COMMISSION, AT THE WORKSHOP ORGANISED FOR BUSINESS EDITORS AND FINANCE, INSURANCE LABOUR CORRESPONDENTS AT REIZ INTERCONTINENTAL HOTEL ABUJA, ON 17 OCTOBER, 2012

Commissioners, National Pension Commission

Business Editors, here present

Executive Members of Finance, Insurance and Labour Correspondents

Chairman of Pension Operators (PenOp)

Heads of Departments of PenCom

Correspondents of Finance, Insurance and Labour, here present

Other Staff of the Commission

Distinguished Ladies and Gentlemen

I am highly delighted to welcome you to the fourth in the series of Workshops being organised by National Pension Commission for Finance, Insurance and Labour Correspondents (FICAN). We are overwhelmed by your continued commitment in attending these Workshops.  The Commission is indeed honoured by your presence despite your tight schedules.

 2  As you are aware, these Workshops had always provided the Commission with a platform to interact with the Finance Editors and Correspondents to discuss our achievements and challenges as well as receive feedback on our performance in the supervision and regulation of pension matters in Nigeria.  By so doing, we are optimistic the general public would be better informed and addressed about the Pension Industry.

3   On behalf of the Commission and the entire pension industry, I would like to express our profound appreciation to the media for your consistent support. Let me again reiterate that the media is an important stakeholder without whose support, the modest achievements recorded by the industry would not have been possible.

4   There is no doubt that the Pension Industry is one of the most reported sector in the last one year following the public hearings on the administration of pension in Nigeria.  We are pleased to note that the media had clearly distinguished the Contributory Pension Scheme (CPS) from the problems of the old scheme which were the subject of the public hearings.  This action had further promoted public confidence in the Contributory Pension Scheme. Similarly, the Commission had maintained cordial relationship with the Media and had always supported the objective reporting of issues pertaining the industry. 

5   The one - day workshop is on the theme:  ‘Effective Administration of Benefits under the Pension Reform Act 2004’.  Four papers are slated for presentation, two from the Commission on the “Developments in the Pension Industry” by Dr. Farouk, Head of Research and Corporate Strategy Department and “Supervising the Pension Departments under the Pension Reform Act 2004” to be delivered by Mrs. Grace Usoro, Head of Public Sector Department.  The third paper is on the “Role of Pension Operators in the Provision of Efficient Customer Service Delivery” by Misbahu Yola, Managing Director, Legacy Pensions and the final paper on “Effective Reporting of the Pension Industry” to be delivered by Mr. Tony Ede, a veteran Journalist and Media Consultant.   

6   Distinguished Ladies and Gentlemen, let me set the ball rolling by sharing with you some of the salient issues in the industry since our Meeting in December last year in Enugu. The industry has continued to advance in its modest achievements as 5.28 million Nigerians had registered on the Scheme as at September this year. There are currently about 54,558 retirees from the public and private sectors under the Contributory Pension Scheme that have collected over N151.52 billion as lump sum and are collecting about N1.77 billion as monthly pension. Additionally, assets worth N2.94 trillion have been accumulated as at the end of September 2012.

7   As part of our consolidation efforts during the year under review, I am pleased to report that the recapitalisation exercise which required PFAs to raise their shareholders fund from N150M to N1Billion has been successfully completed. The Commission has aggressively intensified our compliance efforts by pursing legal action against defaulting employers. Compliance by the informal sector also received a major boost during the year with the appointment of Recovery Agents.

8   During the year under review, The Commission continued with its regulatory and supervisory philosophy, which is risk-based and consultative, Investment Regulation that would allow multiple fund is being reviewed.

9   The Commission issued the Regulation for the Transfer of Retirement Savings Account.  This document is available in the Commission’s website.  Currently, the RSA Transfer Clearing System Application which will be used to coordinate all the processes relating to the transfer of RSAs is being developed and tested to ensure that it meets the capacity and robustness required.  As part of the implementation of opening the transfer window, the PFAs and PFCs who are key stakeholders on the pensions industry will participate in various workshops geared towards ensuring their full understanding and participation in the transfer process, before the window opens. The estimated date for the opening of the transfer window is December, 2012.

10 Distinguished Ladies and Gentlemen, the Commission also continued to collaborate and engage State Governments in the implementation of the Contributory Pension Scheme in the States.  In this regard, the support of the Debt Management Office (DMO) was obtained to ensure that, as a condition, State Governments desirous of obtaining Bonds must key into the Contributory Pension Scheme.  On behalf of the Board and Management of the Commission, I would like to register our appreciation to the DMO and indeed all other Government Agencies such as CBN, SEC, NAICOM, NDIC, FIRS and BPP for their consistent support in the implementation of the Scheme and in actualising the ideals of pension reform in the Country.

11 This Workshop may be the last to be organized by the current Executive Management of the Commission as their tenure comes to an end by the end of this year.  It is therefore our hope and desire that you extend the same if not better commitment to the incoming Executive Management in order to not only sustain the achievements recorded so far, but also take the industry to greater heights.

12 On behalf of the Commission, I would like to extend our gratitude and appreciation to all those who are here with us this morning and those who made this Conference a reality.  I wish all of you fruitful deliberations and successful outcome as well as safe trip back to your respective destinations.

13 Thank you and God bless us all.