PenCom making giant strides in financial inclusion, non-interest pension products – D-G
The Director-General (D-G) of National Pension Commission (PenCom), Ms Omolola Oloworaran, says the commission is making giant strides in financial inclusion, non-interest pension products. She says the Commission has deepened financial inclusion and expanded frontiers of non-interest pension products.
Oloworaran said this during the inauguration of the Pension Industry Non-Interest Advisory Committee (PINAC), in Abuja, on Monday.
“She said that PenCom remained committed to fostering innovation, inclusivity, and sustainability in pension administration.
PenCom targets asset growth of N22 trillion by year-end, says DG
According to her, the establishment of the advisory committee is a testament to the resolve to ensure that the Contributory Pension Scheme (CPS) caters to all segments of society.
“This includes those who prefer financial solutions that align with their ethical and religious principles.
“In recent years, we have witnessed increasing demand for non-interest financial products, driven by a growing awareness of ethical finance principles and the need for alternative investment avenues.
”The introduction of Non-Interest Pension Funds (Fund VI) was a groundbreaking step in this direction, providing an investment option that is free from interest-based instruments while still ensuring competitive returns for contributors,” she said.
Oloworaran said that the development of the segment required structured guidance, expert insights, and collaborative strategies to navigate regulatory, operational, and market challenges.
“This is precisely why we have established this advisory committee to serve as a think tank, providing recommendations on best practices, governance structures, product development, and compliance with non-interest finance principles,” she said.
The D-G listed the mandates of the committee to include enhancing regulatory and supervisory frameworks, to ensure that non-interest pension products remain transparent, secure, and aligned with global best practices.
“Other mandates are to boost market development and awareness, to drive financial literacy and public education on the benefits of non-interest pension funds, thereby increasing participation in the CPS.
”The committee will also identify and recommend viable non-interest investment opportunities that ensure sustainable growth and competitive returns for contributors.
“It also has the mandate of collaboration and stakeholder engagement, to foster partnerships with financial institutions, industry experts, and regulatory bodies to develop a robust and thriving non-interest pension fund ecosystem,” Oloworaran said.
She said that the broader impact of the successful implementation of non-interest pension offerings would enhance financial inclusion, and also attract a significant portion of the unserved and underserved population into.
Oloworaran said that the process aligned with President Bola Tinubu’s broader agenda for financial sector deepening, economic diversification, and social security enhancement.
While commending the committee members, she urged them to put in their best in the initiative by bringing lasting benefits to the Nigerian pension industry
The Chairman of PINAC, Prof. Adam Abubakar, described the inauguration of the committee as a significant milestone in the Nigerian non-interest financial industry.
Abubakar said that the PINAC played a pivotal role in the development and growth of Fund VI and the broader non-interest financial sector in the county.
According to him, the importance of shari’ah compliance monitoring system in Islamic financial institutions can not be over stated.
“It plays a vitaI role in ensuring compliance, building trust, and enhancing credibility and reputation in the overalI operations of Islamic financial institutions.
“Shari’ah governance is essential for maintaining the integrity, trust and effectiveness of these institutions, ensuring that they operate in accordance with the principles of Shari’ah and meet the expectations of their stakeholders.
” Our role as members of PINAC goes beyond a mere commitment to duty. We will also collaborate with other stakeholders,” he said.
Abubakar said that despite Fund VI being operational for over three years, a significant challenge hindering the growth was lack of awareness among Retirement Savings Account (RSA) holders.
” I appeal to the commission to consider conducting public awareness, enlightenment and education initiatives regarding the establishment, operations and management of Fund VI, as provided in Pension Reform Act 2014,” the Chairman said.
BRANDECONOMY reports that the other members of the committee are Mr Muhammad Lere, Dr Oyewale Akeem, Dr Muhammad Ishaq and Mr Ahmed Suliman.
