The Chartered Institute of Personnel Management (CIPM) has uncovered that approximately 63 million workers in Nigeria have not yet participated in the Contributory Pension Scheme established by the National Pension Commission.
During the PENCOM/National Employers Consultative Association interactive session on the Contributory Pension Scheme for the Organized Private Sector in Enugu, Dr. Onyeka Okoh, the chairman of CIPM’s Enugu State branch, made this revelation.
Dr. Okoh explained that only 10 million workers have enrolled in the scheme, citing corruption as a significant barrier to wider participation in Nigeria.
While federal employees and multinational corporations in Nigeria are adhering to the Pension Scheme Act of 2014, many others, especially in the informal sector, have yet to comply.
Dr. Okoh emphasized that addressing corruption is crucial for improving participation in the scheme. He noted that multinational companies’ ability to comply is due to their well-structured operations, while many privately owned Nigerian companies are lagging in PenCom scheme compliance.
Uzochukwu Chime, the chairman of NECA, highlighted the positive impact of PENCOM on retirement in his remarks. He noted that, thanks to the Pension Reform Act 2014, retirement has become more certain and predictable for workers.
Chime also emphasized the importance of regular interaction and feedback for continuous improvement in the administration of the pension scheme. He expressed the private sector’s commitment to the scheme’s success, provided that their concerns are addressed promptly.
