PenCom strengthens transparency in non-interest pension schemes

DDM News

The National Pension Commission (PenCom) has inaugurated the Pension Industry Non-Interest Advisory Committee.

Diaspora digital media (DDM) gathered that the committee aims to improve transparency, security, and compliance in non-interest pension products across Nigeria.

Speaking at the inauguration in Abuja, PenCom’s Director-General, Omolara Oloworaran, emphasized the significance of the initiative.

She stated that the move aligns with PenCom’s commitment to innovation, inclusivity, and sustainability in pension administration.

The advisory committee will ensure that non-interest pension schemes comply with global best practices and ethical financial principles.

Oloworaran explained that the initiative caters to individuals who seek financial solutions aligning with their religious and ethical beliefs.

She added that the advisory committee highlights PenCom’s efforts to promote financial inclusion in the pension industry.

The introduction of Non-Interest Pension Funds (Fund VI) was a milestone in providing alternative investment options.

Fund VI allows contributors to invest in non-interest pension schemes without engaging in interest-based instruments.

PenCom’s broader objective is to enhance financial inclusion by expanding access to pension benefits for all Nigerians.

The commission has consistently worked to ensure that more people participate in the pension system.

Since the enactment of the Pension Reform Act in 2004, PenCom has strengthened Nigeria’s pension administration.

The act was later amended in 2014 to introduce further reforms and enhance the regulatory framework.

Over the years, PenCom has introduced several policies to encourage participation and improve pension fund management.

Oloworaran stated that demand for ethical financial products has significantly increased in recent years.

She explained that more people now prefer financial instruments based on ethical finance principles.

PenCom established the advisory committee to provide expert insights and ensure compliance with regulatory standards.

“The development of non-interest pension schemes requires structured guidance, expert insights, and collaborative strategies,” Oloworaran stated.

She added that the advisory committee would function as a think tank for regulatory, operational, and market-related recommendations.

The committee will advise on governance structures, compliance frameworks, and best practices in the pension sector.

PenCom aims to maintain credibility, transparency, and sustainability in the administration of non-interest pension funds.

The committee is expected to enhance trust and confidence in the pension industry.

The chairman of the advisory committee, Prof. Adam Abubakar, emphasized the need for a strong compliance monitoring system.

He stated that a structured Shariah compliance system is crucial for ensuring adherence to ethical financial principles.

Non-interest pension products must comply with religious and ethical financial guidelines, Abubakar explained.

Regulatory oversight plays a vital role in maintaining investor confidence in non-interest pension schemes.

Contributors need assurance that their funds are managed according to ethical and financial principles.

Abubakar urged pension industry stakeholders to support the development of non-interest financial products.

“The advisory committee will strengthen credibility and transparency in non-interest pension schemes,” Abubakar stated.

He added that compliance with ethical financial principles will enhance trust in the pension sector.

The inauguration of the advisory committee marks a major step toward diversifying Nigeria’s pension system.

PenCom is committed to creating a more inclusive and sustainable pension administration framework.

The initiative aligns with the commission’s long-term vision for pension sector expansion and innovation.

Industry experts believe the advisory committee will promote broader participation in pension savings.

By fostering ethical finance, PenCom is encouraging contributors to explore non-interest investment options.

The committee will help shape policies that support the expansion of ethical pension products.

PenCom’s ongoing pension reforms continue to drive progress in Nigeria’s retirement savings system.

As demand for non-interest financial products grows, structured guidance becomes increasingly necessary.

The advisory committee is expected to provide regulatory frameworks supporting ethical pension schemes.

PenCom remains dedicated to ensuring Nigeria’s pension system remains secure, adaptable, and inclusive.

This initiative strengthens PenCom’s proactive approach to addressing financial inclusion and ethical investment needs.

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