The collapse of corporate organizations is linked to several factors. While we cannot disregard the force majeure phenomenon, failure to comply with best global practices top the list of business risks.

As businesses struggle for survival due to growing challenges, a number of them would rather stick to high standards of quality that their brand names are known for.

It goes without saying that these businesses have integrity ingrained in their operations; in fact, they have included it into their mission statements such that individuals of high repute and honor occupy their board and management positions.

Despite the fact that there are some companies that do not implement global practices in their daily operations, many more in the nation have demonstrated beyond doubt that they value their integrity by upholding ethical standards in their respective industries while continuing to be truthful in their local and international business dealings.

In this special report titled Integrity In Business- Special Report on Firms with Integrity and High Ethical Values, we will be unveiling some reputable firms in the corporate environment that have operated over the years with no blemish at local and international levels and can be relied upon business-wise.

FIDELITY PENSION MANAGERS LIMITED: INTEGRITY-DRIVEN PFA, COMMITTED TO PRIORITIZING SOLUTIONS THAT DELIVER RESULTS MOST EFFICIENTLY

Fidelity Pension Managers Limited is a leading pension fund administrator in Nigeria, committed to delivering excellent services and ensuring the financial security of its clients.

Driven with integrity, the organization’s management is focused on innovation, customer satisfaction, and regulatory compliance. It manages retirement savings accounts and provides personalized pension solutions to individuals and organizations.

Recognized by The Guardian as one of the Integrity-driven Firms in Nigeria, Fidelity Pension Managers Ltd MD, Donald Onuoha speaks on how the company is navigating the business challenges and pririotizing customer satisfaction.

Strategies for Operational Excellence

At Fidelity Pension Managers Limited, operational excellence is grounded in strategies that drive efficiency, customer satisfaction, and long-term competitiveness.

We take pride in adhering to regulatory guidelines and upholding strong governance practices. Since our core focus is meeting the pension needs of our clients, we prioritize solutions that deliver results most efficiently.

This includes leveraging technology through process automation, developing user-friendly platforms, and utilizing data analytics to offer personalized services, maintain clear communication, and implement a robust feedback system.

Central to our success is the dedication we invest in our employees. Therefore, at Fidelity Pensions, retaining a highly trained and motivated workforce is always a top priority.

Impact of Economic Realities on Pension Remittances

The rising inflation and resulting economic hardship are impacting everyone. Many companies have had to downsize their operations due to reduced demand, leading to lower income.

Some multinational companies have completely exited Nigeria, unable to cope with the rising dollar exchange rate. Consequently, unemployment has increased due to widespread retrenchments.

This has significantly affected pension remittances in several ways: (1) Decline in Contributions: Fewer active workers mean reduced monthly pension fund remittances; (2) Increased Withdrawals: Retrenched workers can access up to 25% of their Retirement Savings Account (RSA), leading to higher outflows.

(3) Decline in Pension Balance Accumulation: Lower contributions and increased withdrawals weaken long-term pension growth, affecting retirement payouts and the future quality of life for account holders.

Assessment of the Micro-Pension Scheme

At the outset of the transition to the Contributory Pension Scheme in Nigeria, the strategic goal of the government was to ensure that at least 30% of Nigeria’s workforce would be enrolled in the scheme by the end of 2024.

However, a significant portion of Nigeria’s workforce is in the informal sector. A 2018 ILO estimate shows that 93% of all employment in Nigeria is informal.

Therefore, it became crucial to prioritize expanding coverage to this significant segment of workers. However, this segment of the Nigerian workforce has certain peculiarities that distinguish them from formal sector workers.

Of particular interest are irregular income and the general lack of access to social security benefits such as pensions, health insurance and paid leave. Given the limited access to financial resources, the growth of membership in the MPP has been rather slow.

Five years since its advent, total industry membership of the scheme stands at 152,000 with AUM less than N800 million as of first quarter of 2024. The level of success recorded in the formal sector has not been replicated in the MPP. Nonetheless, we cannot discountenance the achievements recorded so far.

Deployment of Digital Technology

In our commitment to enhancing customer service, we have embraced technology and innovation. By automating most of our processes, we have significantly improved the speed and accuracy of our services.

This has led to reduced human error and increased efficiency in processing pension contributions, record keeping, and benefits administration. Our digital platforms have also proven highly effective.

With user-friendly mobile apps and web portals, contributors and retirees can easily monitor their pension accounts, request statements, and make contributions at their convenience.

At Fidelity Pensions, we have made substantial investments in robust cybersecurity measures to protect sensitive customer data and maintain trust in our systems.

Projection for Return on Pension Asset Investment

Investment returns must always be assessed in context. Just as you can only harvest oranges from an orange tree, you cannot expect to reap pawpaw from an orange tree. Similarly, if we invest in specific asset classes, we can only expect returns aligned with those assets.

To ensure a diverse stream of returns, we diversify our investment portfolios. This is why we don’t invest solely in one asset class but spread our investments across multiple allowable categories, including equities, fixed-income securities, alternative instruments, and money market instruments.

All of our investments are grounded in thorough research. As long as we remain invested, we continually update our knowledge of the investment landscape to confirm that our strategy remains justified.

While diversification can help mitigate non-systematic risks (those unique to specific securities or asset classes), it cannot shield us from systematic risks. Systematic risks tend to impact all asset classes—positively or negatively—albeit to varying degrees.

Through ongoing research, we identify assets that are either favoured by current economic conditions or less adversely affected by them. By positioning ourselves accordingly, we strive to maintain positive investment returns.