Consumer Protection Group Tackles PENCOM over Directive Barring PFAs from Giving Gifts to Customers
Yinka Kolawole in Osogbo
The Centre for Consumer Concern yesterday frowned at the recent National Pension Commission’s directive prohibiting loyalty to retirement saving account holders.
The Centre also described the clandestine move as unhappy that this came on the heels of the just celebrated World Customer Loyalty Week, which is celebrated in October of every year.
In a statement signed and issued yesterday by the Executive Director of the Centre, Mr. Wale Adekola, as well as the CEO of Consumertrics Nigeria, Mr. Muyiwa Ayojimi, stated that PENCOM management claimed this decision was reached because it perceived it would put an end to “unhealthy competition” among PFA’s.
It would be recalled that there was a recent directive from PENCOM to PFAs to stop giving gifts to their customers.
The centre, however, views this decision as an anomaly and regulator’s undue interference into Pension Fund Administrators (PFA’s) management strategies at retaining their customers.
Consequently, Adekola stated that loyalty programs and rewards are special incentives and ways to attract and retain customers.
The centre posited that consumers deserved all and everything that could put smiles to their faces in this trying time.
According to him, “while I commend PENCOM for laudable initiatives in the past, this recent directive is a setback in their consumer protection efforts.”
He stated that business all around the world take strategic steps to sustain their customers and the PFA’s should not be an exception.
The PENCOM should not be seen to subtly protecting certain PFA’s from the other. Let the industry strive and any PFA’s balance sheet that can sustain loyalty programmes should be left to do so.
The centre charged PENCOM to continue its focus on directives that protect consumers from processes that undermine quality of service from the PFA’s. Issues of late and endless or protracted payments to beneficiaries from their end, enforce parameters on data processes, enshrine investment governance and monitor professional communication issues among PFAs and the consumers.
In similar vein, the CEO of Consumertrics Nigeria, Mr. Muyiwa Ayojimi, stated that stopping loyalty schemes in this sector would even stiffen competition and the competition commission should override PENCOM on this latest directive, given its powers and forge a truce for consumers.
The consumer protection agencies should rise up to the protection of pension customers as to do otherwise would be to disfranchised a sector of consumers from benefiting from what other consumers would benefit in grocery stores, airline and other consumer brand platforms across all industries that offer programs to reward customers for their loyalty.
He stated that what the PFAs are doing is a show of the value/premium placed on their customers. Retention strategies have proven to be a very effective way of growing a business and customer loyalty is a big part of it.
Ayojimi stated that in the coming days, consumetrics would issue an advisory to consumers on the top PFAs in Nigeria following a just conclude survey conducted by the firm.
