Nigeria’s Pension reforms draw interest from Kenya

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Barbara Bako, Abuja.

Nigeria’s pension regulatory framework is drawing attention from across Africa, with officials from Kenya’s Retirement Benefits Authority (RBA) currently in Abuja to study key aspects of the country’s pension reforms.

The four-member delegation is undertaking a four-day technical visit hosted by the National Pension Commission (PenCom), focusing on risk-based supervision, environmental, social and governance (ESG) integration, pension inclusion and diaspora participation in retirement savings.

Leading the delegation, Director of Market Conduct and Industry Development at the RBA, John Keah, said Kenya hopes to learn from Nigeria’s experience in building and regulating its Contributory Pension Scheme (CPS).

According to him, similarities between the pension sectors of both countries make Nigeria’s model particularly relevant to reforms being pursued in Kenya.

“We are here to learn from Nigeria’s experiences and assess how some of those lessons can be adapted to our own environment. We are particularly interested in PenCom’s ESG initiatives, risk-based supervision framework, strategies for expanding pension coverage to the informal sector and the Diaspora Pension Arrangement,” Keah said.

He noted that the governance structures underpinning Nigeria’s pension system and the Diaspora Pension Arrangement could offer useful insights for improving retirement security.

PenCom Director-General, Mrs. Omolola Oloworaran, represented by Director of Surveillance Abdulrahaman Muhammad Saleem, said Nigeria’s pension industry has expanded significantly since the CPS was introduced in 2004.

She disclosed that assets under management have exceeded N32 trillion, representing about 10.4 per cent of the nation’s Gross Domestic Product.

According to Oloworaran, the growth reflects years of regulatory reforms, stronger governance standards and enhanced oversight of pension operators.

The PenCom chief also highlighted the Federal Government’s settlement of accrued pension rights liabilities, describing it as a major development for public sector workers enrolled in the CPS.

She said the intervention has ended delays that previously affected many retirees from treasury-funded Ministries, Departments and Agencies, enabling accrued rights to be credited directly into Retirement Savings Accounts.

“The issuance of a Federal Government bond to settle the accrued rights liabilities has transformed the retirement experience for public sector employees. Accrued pension rights are now transferred directly into retirees’ Retirement Savings Accounts (RSA), enabling immediate access to investment returns and eliminating lengthy waiting periods,” she said.

The study visit, themed “Risk-Based Supervision and ESG Integration in Pension Funds,” includes technical sessions with PenCom officials as well as visits to selected Pension Fund Administrators.

Officials from both countries are expected to explore opportunities for deeper cooperation as African regulators seek to strengthen pension systems and improve retirement outcomes across the continent.