‘Altering PRA 2014 will worry investors’

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

It added 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 pension and other reforms due to such policy reversals,” its Acting Director-General, Aisha Dahir-Umar, said.

A former PenCom Board member, and Director, Centre for Pension Right Advocacy, Ivor Takor, said if passed into law, the bill will bring un-intended outcomes, that may negatively affect industrial relations in the country, and the economy.

This is because other public servants through their unions, may commence agitations including strikes, to get governments -federal and states to take them out of the contributory pension scheme 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.

He added that if the bill is passed, the investible fund of over N6.7trillion will be thrown into crisis that will affect the economy.