•Oloworaran inaugurates advisory committee

The Director-General, National Pension Commission (PenCom), Ms. Omolola Oloworaran, yesterday inaugurated the Pension Industry Non-interest Advisory Committee (PINAC), a think tank that would provide recommendations on best practices, governance structures, product development, and compliance with non-interest finance principles, among others.

Oloworaran, said the inauguration marked a significant milestone in collective efforts to deepen financial inclusion and expand the frontiers of non-interest pension products within the Nigerian pension industry.

Speaking at the inauguration of PINAC, chaired by Mr. Muhammad Adamu Lere, in Abuja, she said PenCom remained committed to fostering innovation, inclusivity, and sustainability in pension administration.

She said the advisory committee was a testament to the commission’s resolve to ensuring that the Contributory Pension Scheme (CPS) caters to all segments of society, including those who prefer financial solutions that align with their ethical and religious principles.

According to the PenCom boss, the country had witnessed increasing demand for non-interest financial products, driven by a growing awareness of ethical finance principles and the need for alternative investment avenues in recent years.

She explained that the introduction of Non-Interest Pension Funds (Fund VI) was a groundbreaking step in the provision of non-interest financial products, providing an investment option that is free from interest-based instruments while still ensuring competitive returns for contributors.

Oloworaran, however, noted that the development of the segment required structured guidance, expert insights, and collaborative strategies to navigate regulatory, operational, and market challenges, thus the relevance of the advisory committee.

She pointed out that the successful implementation of non-interest pension offerings will not only enhance financial inclusion but also attract a significant portion of the unserved and underserved population into the pension system.

She said, “This aligns with Mr. President’s broader agenda for financial sector deepening, economic diversification, and social security enhancement.

“Moreover, by embracing non-interest financial principles, we are positioning Nigeria as a leader in ethical pension fund management, fostering investor confidence, and promoting sustainable economic growth.”

She tasked the committee to approach the task with dedication, foresight, and an unwavering commitment to excellence, adding that members’ collective expertise and insights will shape the future of non-interest pension funds in the country, ensuring that “we build a system that is not only inclusive but also resilient and globally competitive.”

She further assured that PenCom would provide all necessary support to ensure the success of the initiative.

She said, “We are confident that through your efforts, the pension industry will experience a new era of innovation and inclusivity.

“I implore you to embrace this opportunity to make a lasting impact. Together, we will build a pension system that serves all Nigerians, regardless of their financial preferences, and secure a dignified retirement for all.”

Nonetheless, Oloworaran expressed confidence that the committee will lay a strong foundation for the sustainable growth of non-interest pension funds.

The PINAC’s terms of reference are to enhance regulatory and supervisory frameworks, ensuring that non-interest pension products remained transparent, secure, and aligned with global best practices.

It is also expected to proffer measures to boost market development and awareness by driving financial literacy and public education on the benefits of non-interest pension funds, thereby increasing participation in the CPS.

The committee will further identify and recommend viable non-interest investment opportunities that ensure sustainable growth and competitive returns for contributors, as well as foster partnerships with financial institutions, industry experts, and regulatory bodies to develop a robust and thriving non-interest pension fund ecosystem.

However, responding on behalf of the committee, Lere, vowed to work closely with the secretariat to ensure that PFAs invest Fund VI assets in the instruments that are both ethical and non-interest bearing, as provided by Section 4 of the Investment Regulation of the commission.

He said, “I stand before you today with immense gratitude and a profound sense of responsibility on behalf of all members of the Pension Industry Non-Interest Advisory Committee (PINAC), we are deeply honoured by the trust and confidence reposed in us by the commission for this significant assignment.

“This day represents a significant milestone in the Nigerian non-interest financial industry, highlighting the pivotal role of PINAC in the development and growth of Fund VI and the broader non-interest financial sector in the country.”