Contributory pension penetration still low – Ideva

The market penetration of the Contributory Pension Scheme (CPS) in Nigeria is still not enough as there are still segments of the workforce that should be covered to guarantee their financial freedom in old age.

The Managing Director and Chief Executive Officer (CEO) of Premium Pension Limited, Wilson Ideva, said this while receiving a delegation from Media Trust Limited, publishers of Daily Trust and Aminiya, in Abuja yesterday.

Ideva said the about 6.3 million Retirement Savings Account (RSAs) holders are just about 10 per cent of the 60 million labour force in the country, indicating that there is need for awareness creation and promotion of the pension industry.

He said there is insufficient awareness on the positive impacts of the contributory pension scheme, not only on the economy, but also on future financial security it offers to contributors.

He said the contributory pension scheme is still suffering from the negative connotation of the old defined benefit scheme, adding that the media should do more to change the negative perception.

Ideva said Premium Pension paid its customers pension on the 19th of every month and has branches in all parts of the country in order to remain accessible to Nigerians irrespective of where they reside.

The pension expert said there is needed to promote the industry to capture operators in the informal sector and high-earning celebrities in Nollywood and sports as most of them have short careers and would need to save to sustain their lifestyles when they retired.

The Executive Director, Operations and Services of Premium Pension, Adamu Musa Mele, said pension contribution is a long-term retirement planning and the benefits are huge in the long run.

Mele said the media should pay more attention in publicising the micro pension scheme as it is new and targets a huge segment of the economy.