Efforts are in top gear to end old age
poverty in Nigeria through the introduction
of Micro Pension for self-employed
Nigerians, Eric Fajemisin, the chief
executive officer of Stanbic IBTC Pension
Managers Ltd (SIPML) has disclosed.
Speaking at a media parley organized by
SIPML in Lagos on Thursday, December
1, Fajemisin disclosed that the federal
government and Pension Fund
Administrators (PFA) are currently
working out the possibility of rolling out
the micro pension scheme in the first
quarter of next year, NAIJ.com reports.
File photo: Pensioners in Nigeria often protest
refusal of government to pay their entitlements
According to Fajemisin, the micro
pension scheme is aimed at self-
employed Nigerians in the informal
market.
Recall that at the birth of the Pension
Reform Act, 2004, one of the main
concerns and indeed, weaknesses was
that it was not an all-inclusive scheme.
The Act, in its Section 2, identifies
persons it is applicable to as “all
employees in the Public Service of the
Federation, Federal Capital Territory and
the Private Sector.” Employees at the
state level were later added to the
pension scheme. But there was no room
for the self-employed individuals.
Hence, Fajemisin believes that the
government’s plan to set up a micro-
pension scheme to accommodate the self-
employed is a welcomed development.
READ ALSO: Nigeria is coming out of
recession soon - Osinbajo
However, Fajemisin admitted that there
will be challenges for the micro pension
to come on board.
New York
Exciting New York visit.
Great travel ideas.
He said: “Micro pension can cover a
larger share of the working population
who are in the informal sector as they
don’t have employers and are self-
employed.
“The micro pension scheme is being
worked out and we hope that by next
year, first quarter, we would be able to
engage the market and start sensitizing
the people about it.
“But there will be challenges as there
must be an incentive for micro pension to
come on board.”
Although Fajemisin noted that the micro
pension scheme will help close the gap
on the number of Nigerians registered in
the pension scheme.
According to him 7.3million out of over
180million Nigerians are registered in
the pension scheme.
“7.3million Nigerians are registered in
the pension scheme but that is like a drop
in the ocean because we have over
180million Nigerians. So at least
170million Nigerians do not have a
pension. This is why we believe the micro
pension scheme can help close the gap,”
Fajemisin said.
READ ALSO: Lagos govt plan to demolish
shops meets stiff resistance
Speaking on the growth of Stanbic IBTC
Pension Managers Ltd, Fajemisin said
the company has recorded close to
N2trillion in assets in the last 10 years.
“In terms of capitalization, we are
arguably the most capitalized in the
industry as we are 140% ahead of where
we should be and in terms of assets we
manage close to N2trillion as at today,”
Fajemisin said.
He said SIPML has emerged as the
country’s largest PFA in terms of clients
as the company generated 11% interest
for its clients in the last 10 years.
“Pension assets are not for a very risky
investment, we don’t take unnecessary
risk. We are committed to transparency,
safety and liquidity,’’ Mr. Fajemisin also
noted.
Fajemisin said SIPML would continue to
set higher standards of service delivery
and ensure that retirement savings
account holders derived maximum value
from their contributions.
According to him, the company will
continue to broaden and enhance its
service channels to ensure efficient
service delivery.
He added that pension funds were for
retirements and not meant for
infrastructure investment.
On his part, Oladele Sotubo, SIPML
executive director investments said that
about 11% of the company’s assets were
invested in the equities owing to current
market realities.
World Infrastructure
Data
Make Better Business Decisions
With Expert Analysis. Sign Up Now.
Sotubo said that protection of assets was
very critical to the company as well as
quality of stock.
He stated that the nation’s bourse had
not witnessed quality listing in the last
four years, noting that the company only
invests in quality stocks.
Steve Elusope, the company’s executive
director operations, said there were
untapped opportunities in pension funds
management services.
According to Elusope, the pension
management industry can play an
important role in the nation’s economy,
in spite of the present recession if well
developed.
He said that poor adoption of pension
scheme in the country remained a major
threat to economic growth and
development.
Elusope said: “This is such a critical time
in our nation economy considering the
fact that we are in a recession. But in
spite of all the challenges, we believe there
are opportunities for growth and
development and these opportunities exist
within the pension funds managers.
Pension management can play an
important role in the growth of our
economy.”
Meanwhile, reports in some quarters
indicate that the federal government is
planning to commence a pilot phase of
the micro-pension which is expected to
produce a minimum enrollment of
250,000 in the first six months of next
year.
poverty in Nigeria through the introduction
of Micro Pension for self-employed
Nigerians, Eric Fajemisin, the chief
executive officer of Stanbic IBTC Pension
Managers Ltd (SIPML) has disclosed.
Speaking at a media parley organized by
SIPML in Lagos on Thursday, December
1, Fajemisin disclosed that the federal
government and Pension Fund
Administrators (PFA) are currently
working out the possibility of rolling out
the micro pension scheme in the first
quarter of next year, NAIJ.com reports.
File photo: Pensioners in Nigeria often protest
refusal of government to pay their entitlements
According to Fajemisin, the micro
pension scheme is aimed at self-
employed Nigerians in the informal
market.
Recall that at the birth of the Pension
Reform Act, 2004, one of the main
concerns and indeed, weaknesses was
that it was not an all-inclusive scheme.
The Act, in its Section 2, identifies
persons it is applicable to as “all
employees in the Public Service of the
Federation, Federal Capital Territory and
the Private Sector.” Employees at the
state level were later added to the
pension scheme. But there was no room
for the self-employed individuals.
Hence, Fajemisin believes that the
government’s plan to set up a micro-
pension scheme to accommodate the self-
employed is a welcomed development.
READ ALSO: Nigeria is coming out of
recession soon - Osinbajo
However, Fajemisin admitted that there
will be challenges for the micro pension
to come on board.
New York
Exciting New York visit.
Great travel ideas.
He said: “Micro pension can cover a
larger share of the working population
who are in the informal sector as they
don’t have employers and are self-
employed.
“The micro pension scheme is being
worked out and we hope that by next
year, first quarter, we would be able to
engage the market and start sensitizing
the people about it.
“But there will be challenges as there
must be an incentive for micro pension to
come on board.”
Although Fajemisin noted that the micro
pension scheme will help close the gap
on the number of Nigerians registered in
the pension scheme.
According to him 7.3million out of over
180million Nigerians are registered in
the pension scheme.
“7.3million Nigerians are registered in
the pension scheme but that is like a drop
in the ocean because we have over
180million Nigerians. So at least
170million Nigerians do not have a
pension. This is why we believe the micro
pension scheme can help close the gap,”
Fajemisin said.
READ ALSO: Lagos govt plan to demolish
shops meets stiff resistance
Speaking on the growth of Stanbic IBTC
Pension Managers Ltd, Fajemisin said
the company has recorded close to
N2trillion in assets in the last 10 years.
“In terms of capitalization, we are
arguably the most capitalized in the
industry as we are 140% ahead of where
we should be and in terms of assets we
manage close to N2trillion as at today,”
Fajemisin said.
He said SIPML has emerged as the
country’s largest PFA in terms of clients
as the company generated 11% interest
for its clients in the last 10 years.
“Pension assets are not for a very risky
investment, we don’t take unnecessary
risk. We are committed to transparency,
safety and liquidity,’’ Mr. Fajemisin also
noted.
Fajemisin said SIPML would continue to
set higher standards of service delivery
and ensure that retirement savings
account holders derived maximum value
from their contributions.
According to him, the company will
continue to broaden and enhance its
service channels to ensure efficient
service delivery.
He added that pension funds were for
retirements and not meant for
infrastructure investment.
On his part, Oladele Sotubo, SIPML
executive director investments said that
about 11% of the company’s assets were
invested in the equities owing to current
market realities.
World Infrastructure
Data
Make Better Business Decisions
With Expert Analysis. Sign Up Now.
Sotubo said that protection of assets was
very critical to the company as well as
quality of stock.
He stated that the nation’s bourse had
not witnessed quality listing in the last
four years, noting that the company only
invests in quality stocks.
Steve Elusope, the company’s executive
director operations, said there were
untapped opportunities in pension funds
management services.
According to Elusope, the pension
management industry can play an
important role in the nation’s economy,
in spite of the present recession if well
developed.
He said that poor adoption of pension
scheme in the country remained a major
threat to economic growth and
development.
Elusope said: “This is such a critical time
in our nation economy considering the
fact that we are in a recession. But in
spite of all the challenges, we believe there
are opportunities for growth and
development and these opportunities exist
within the pension funds managers.
Pension management can play an
important role in the growth of our
economy.”
Meanwhile, reports in some quarters
indicate that the federal government is
planning to commence a pilot phase of
the micro-pension which is expected to
produce a minimum enrollment of
250,000 in the first six months of next
year.
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