Friends, permit me to reflect on the state of pension administration in the Nigeria viz-a-viz the Contributory Pension Scheme introduced by the Obasanjo administration.

My experience as a pioneer staff of a first generation Pension Fund Administrator (PFA) in the country had endowed me with sufficient knowledge of the workings of the scheme, the role of industry players (Retirement Savings Account "RSA" holder, Pension Fund Administrators "PFA" and the National Pensions Commission "PenCom" which serves as the regulating agency), and the legal framework of the scheme. However, it is appalling to note that over a decade after that major reform in pensions management, the expected result which was convenient payment of retirement benefits is far from being achieved as Retirement Savings Account (RSA) holders face a lot of stress by the PFAs, wait for months sometimes years after retirement before their entitlements are fully processed and paid by their respective PFAs. Several factors suffice for this as follows:

1. Ineffective Supervision?
   The Pensions Reform Act of 2004 as later amended in 2014 made provisions for the establishment of a National Pensions Commission otherwise known as PenCom saddled with the responsibility of regulating the country's pension industry, build policies for effective administration of retirement benefits, and ensure compliance with industry standards by Pension Fund Administrators also known as PFAs just as the Central Bank regulates the country's financial industry. How has PenCom fared in this regard? Can the agency boldly give themselves a pass mark? Has the agency ensured compliance by PFAs? The law made a provision for Nigerians to change PFA as supervised by PenCom. Has the agency given the go-ahead for this? Nigerians have been forced to cope with whatever conditions the PFAs subject them to. Has PenCom enlightened Nigerians in this regard? Is the agency facing challenges hampering their effectiveness unknown to us? What is the budgetary allocation to PenCom over the years? Nigerians need to look critically into PenCom's activities in the past years of its existence and if necessary, compel the agency in line with the Freedom of Information (FOI) Act to brief the public of its activities. This is a tip for the Federal Government.

2. Incompetence of PFAs:?
   It is common knowledge that many Pension Fund Administrators in the country have not lived up to expectation. Has anyone bothered to ask why? Nigerians are busy trying to cope with existential problems like the next meal, a roof over one's head, fuel scarcity, etc and may not have noticed the incompetence of our PFAs. As stipulated by the law, PFAs are to invest the pension funds and yield returns on investment which is shared on a stipulated percentage between the RSA holder and PFA. Have Pension Funds been properly invested and returns on investment allocated? Of course the RSA holders wouldn't know because the PFAs don't even fulfil their obligation of quarterly issuance of Statements of account.

3. Centralization of processes?
   Truth is, there are quite a lot of processes involved in pension administration and these require a regular interphase between the RSA holder, PFA, then PenCom. PenCom is located in Abuja. Whether they have zonal or state offices remains unknown. PFAs have their headquarters either in Abuja or Lagos with branches scattered all over the nation. Now let me shock you. Those branches are just marketing outlets. No one will tell you this, but its true. The processing of RSA opening forms, opening of accounts, management of accounts, processing of benefits, etc happen in their head office. This explains the usual delay because with head office must process your stuff and send it back to the branch. Who knows the workload there? Major decisions are taken in the head office and for a country polarised along religious, ethnic, and political lines, it is possible that the Yoruba man responsible for processing payments for instance will first attend to his kin before others. PFAs should decentralize just as banks have done. PenCom should do same.

4. Favouritism?
   Of course yes. There will always be men with long legs in this country and such a man will know someone who knows someone hence he gets an accelerated service at the expense of those going through the process.

Prayers:

1. Regulation:
   Who regulates PenCom? This is a question for members of the 8th National Assembly. I'm expecting them to hasten their lobby for so called juicy committees and settle down to serious legislative business as soon as possible. The Pension Reforms Act should be looked into again and reviewed to meet present day realities if possible. Now that the long awaited Ministers have arrived, Mr. President should as a matter of urgency, direct the minister whose ministry, PenCom as a parastatal comes under to take a closer look at the agency. It is my opinion that if PenCom is properly supervised, they will in turn pass the heat onto PFAs and the system will be cleaned up.

2. PenCom should sit up.

3. PFAs should sit up and erring PFAs sanctioned in line with the law.

4. A collaboration between PenCom and the National Orientation Agency (NOA) is needful so as to further enlighten Nigerians on the contributory Pensions scheme.

Submission:
In conclusion, may I posit that having toiled so hard for many years, the average Nigerian needs to receive his pension as conveniently and timely as possible. I believe this is possible. Let us make it so. Thank you.

-Ubon Marcus