The Nigeria Employers’ Consultative Association has commended the President Bola Tinubu administration for inaugurating the governing board of the National Pension Commission.

NECA director-general Adewale-Smatt Oyerinde, in a statement on Tuesday, described the development as a critical step toward strengthening governance, transparency and accountability in Nigeria’s pension industry.

Mr Oyerinde said the inauguration came after a prolonged delay, which had raised concerns among employers and stakeholders about oversight of pension assets and the overall integrity of the Contributory Pension Scheme.

“The constitution of the PENCOM board is both timely and commendable. It addresses a significant governance gap and reinforces confidence in the management of pension funds, now valued at over N28 trillion,” he said.

According to him, the N28 trillion represents the retirement security of millions of Nigerian workers.

“NECA particularly applauded the Federal Government, under the leadership of President Bola Ahmed Tinubu, GCFR, for taking decisive action to restore the statutory governance structure of PENCOM, in line with the provisions of the Pension Reform Act 2014,” he said.

Mr Oyerinde said that NECA also aligned with the position of the secretary to the government of the federation, George Akume, who charged the board to uphold the highest standards of corporate governance.

Mr Oyerinde urged the board to ensure strict oversight and avoid interference in PENCOM’s day-to-day operations.

The NECA chief said that a clear separation between governance and management was essential for institutional effectiveness, as ”strong oversight, without operational interference, was fundamental to sustaining accountability and safeguarding contributors’ funds”.

Mr Oyerinde urged the newly inaugurated board to prioritise transparency, robust risk management, and strict adherence to global best practices.

According to him, maintaining employer and public confidence in the pension system is critical to the continued success and sustainability of CPS.

“The business community remains committed to fulfilling its statutory obligations under the CPS. However, this commitment must be matched with strong governance frameworks that guarantee the safety, security, and efficient management of pension contributions,” Mr Oyerinde said.

Mr Oyerinde expressed optimism that the collaboration between the board, led by its chairman, Opeyemi Agbaje and the management of PENCOM, under its director-general, Omolola Oloworaran, would usher in a new era of strengthened institutional performance.

He added that their collaboration would improve service delivery to contributors and retirees.

Mr Oyerinde reaffirmed the association’s readiness to continue engaging with relevant stakeholders to promote policies and initiatives that would enhance the efficiency, transparency, and sustainability of Nigeria’s pension system.

(NAN)