Enhancing Public Awareness on CPS

Ebere Nwoji posits that failure of National Pension Commission to assume the position of chief marketer of the pension sector may frustrate operators’ proposed awareness campaign on CPS,

On going plan by the Pension sector operators to embark on media campaign to sensitise Nigerians on the need to key into Contributory Pension Scheme (CPS) has been commended by stakeholders in the pension sector.

In planning the awareness campaign, the operators said it has become necessary against the backdrop of prevailing high level of public ignorance of the workings of the CPS despite 20 years after.

Good as the plan is, pension sector observers have expressed doubt on the efficacy of the campaign in pulling the large population of Nigerian workers and employers both in public and private sector still operating outside the CPS territory.

According to them, the possibility of the campaign achieving the set objective is doubtful because the National Pension Commission (PenCom), which supposed to be the chief marketer of the sector has over the years chosen  to remain at the background as well as faceless at public functions where it supposed to market the scheme, educate the public on the merits of the scheme and make them hear from the horse’s mouth the inherent benefits in the funded scheme when compared with the old scheme.

Indeed, stakeholders have questioned the attitude of PenCom towards educating Nigerians on the workings of CPS severally. CPS has been practiced for 20 years in Nigeria, that PFAs are still struggling to win the minds of many employers and employees including state governments leaves much to be desired.

This has compelled both stakeholders and sector observers to describe PenCom as a non forward looking regulator and one too complacent and nonchalant towards expanding the frontiers of the scheme it is regulating.

According to them, one hardly notices the presence of the Director General of PenCom at pension fora irrespective of the caliber of people at the forum, the importance and topic of discussion.

Retreat for federal lawmakers 

A case in point was the recent retreat organised by the pension Fund Operators Association of Nigeria (PenOp) for members of House of Representatives Committee on Pension and some members of House Committee on Establishment and public service.

The two day retreat had the theme, “The CPS: Navigating Challenges and Unlocking Secured Future for Pensioners.”

When deliberations were at the peak, some of the law makers expressed their disappointment and regrets that the Director General of PenCom, Aisha Dahir Umar was absent insisting that she should have been there personally to address some of the issues raised at the retreat.

But thanks to one of the CEOs, precisely the Managing Director Access Pension,  Mr Dave Uduanu who was on ground  to competently  and satisfactorily address all the issues raised at the retreat and was able to pacify the law makers.

Retreat for journalists

Similarly, at the Annual media retreat instituted by the pioneer Director General of PenCom, Muhammad Ahmad, for journalists reporting pension matters, media men have for several years complained that since the tenure of the incumbent PenCom DG they have not had the privilege of having her address them at the retreat.

According to the journalists as a result, they hardly get FrontPage stories from the annual event. This, they said, was quite   unlike the tenure of Amad when his statements at the retreats gave  journalists front page stories  as part of  take home package from the retreat.

According to the journalists even during the tenure of the immediate past Director General, Mrs Chinelo Anohu -Amazu, journalists reporting pension generated front page stories for their various media houses because just like her predecessor Ahmad, Anohu-Amazu was always present at retreat and other important pension fora and was competent enough to market the CPS and interact with the media.

The obvious continued absence of PenCom authority at public fora has been given various interpretations by both stakeholders and industry watchers. While some said it was because of the DG’s busy schedule, majority said it was a sign of incompetence on her side because she could’t have been too busy to defend and market the sector she has been employed to regulate.

Even some of her staff alleged that the best she does in this situation was to attack her corporate communications staff anytime there was negative media report on the commission.

Against this backdrop pension sector analysts said there was need for a wake up attitude by the PenCom authority if the proposed awareness campaign would yield positive result.

According to them, this is because in creating awareness about the scheme targeted at luring the people; the masses will believe whatever comes from PenCom more than what the operators of PFAs tell them.

Public Perception of PFAs

They noted that in most cases, Nigerians see PFA managers as people who sit in executive air-conditioned offices enjoying their hard earned money. As such, they don’t so much believe what comes from the PFA managers.  

A case in point on this negative perception of the public on PFAs was seen in the statement made in some paragraphs of a good will message delivered at the retreat  by the Chairman House Committee on Pension, Husaini Mohammed Jallo in which  he said: “Retirees  under CPS are said to be allegedly suffering from the exploitation and rip off under the guise of managing their benefits and entitlement.  In 2004, retirees were compulsorily asked to join the CPS operated by the Pension Fund Administrators (PFAs) under the control of PenCom, by virtue of 2014 amended Act, the narrative of retirees plights under the CPS does not change the situation any better. The narrative is that CPS denies them having greater share of lump sum after retirement and dispenses a paltry monthly pension to retirees across the board under this scheme.

“The assertion was made clear with a case study of one of the retirees in the hands of CPS who served the Federal Government of Nigeria from July 15,1981 and retired in July 15 2016 on salary grade level 14, having worked for a mandatory period of 35 years and attained the maximum age of 60 years.

“For all the years he put in, the total balance standing to his credit was N6,745,823,34 out of this, he was paid 25 per cent of his savings which amounted to N1,686,455,84 while the balance of 75 per cent was retained by PFA for their investment in capital market and other large institution with high returns which is never been added to retirees’  paltry monthly payment while still alive.

“He received N26,703.15 every month since 2016 till date despite the huge profits declared every year under CPS  which can barely buy a loaf of bread at the price of N1000 currently per day for 30 days  The same apply to all others under this arrangement.”

In conclusion he said, “ Retirees under this scheme worked for their life-saving benefits while those collaborators (referring to PFAs) under CPS enjoy their hard earned benefits in the name of investing their funds for them.”

With the above statement by the house chairman, one can imagine the perspective from which other members of the public see the PFA managers let alone believing their words in the proposed awareness.

Analysts have said had the PenCom DG been the eloquent type, the proposed awareness would have yielded the desired result.

A managing Director of one of the PFAs who pleaded anonymity reasoned that this is why years after the launch of Micro Pension scheme there are still very low contributors because PenCom, which supposed to be the chief marketer is not always available at occasions where like Ahmad or Anohu-Amazu the present DG suppose to address the public herself.

PenCom Vs Other Regulators

This is quite unlike what happens in Insurance sector where the National Insurance Commission (NAICOM) is very much available at occasions to market the industry himself.

Way back in the days of late Chief Oladipo Bailey as the commissioner for insurance he was the chief marketer of the insurance sector and had used occasions like the Ikeja Cantonment explosion to X-ray the need for people to patronise insurance.

The immediate past commissioner for insurance, Sunday Thomas never left any stone unturned in his efforts to market the sector to the public. Even the present commissioner, Mr Ayo Omosehin has started from where his predecessors stopped in marketing insurance sector to tte public.

This has raised the question on why the case of pension sector should be different. Since the tenure of the present DG started, aside newspaper advertisements, awareness creation on the CPS and its workings has been left in the hands of Managing Directors of PFA while PenCom which is supposed to be the leader is in deep slumber.

Industry watchers said this explains why there are agitations for exit from CPS by many groups such as the Nigerian police force and aviation workers.

QUOTE

“This has raised the question on why the case of pension sector should be different. Since the tenure of the present DG started, aside newspaper advertisements, awareness creation on the CPS and its workings has been left in the hands of Managing Directors of PFA while PenCom which is supposed to be the leader is in deep slumber.

Industry watchers said this explains why there are agitations for exit from CPS by many groups such as the Nigerian police force and aviation workers.”