All Posts in "Pension"

Low yield on securities, rising inflation, threat to pension funds Assets growth – LCCI DG

The Director General, Lagos Chambers of Commerce and Industry (LCCI), Dr. Muda Yusuf, has said that the 1-2 percent yield on Treasury Bills toppled with high inflation currently at 13.71 percent are threat to the real growth of pension funds assets in the medium term

Dr. Yusuf made the revelation while delivering the keynote lecture at the 2020 annual national conference of the National Association of Insurance and Pension Correspondents (NAIPCO) on the theme “Promoting Bankable Investments Portfolio for Insurance and Pension Sectors,” In Lagos recently.

According to him, this is so because Pencom guidelines, PFAs are mandated to invest pension funds in low-risk securities, adding that fund managers have little exposure to volatile investment vehicles and that six percent of pension funds assets are locked in equities.

Fund managers’ exposure to investment vehicles in the real sector, he said, is extremely low due to the high level of risk involved explaining that just 2% of pension assets is invested in real estate, and less than 1% in infrastructure fund. because fund managers often complain that projects in the real economy are non-bankable.

On insurance industry investment portfolio, he said there is need to maintain a balance between liquidity and returns on investment on bank placements, Treasury Bills, Commercial papers, Bonds, Equities and Real Estate.

On the trend in Nigerian pension fund assets, Dr. Yusuf said person fund assets have been on the upward trajectory in the last three years with assets under Management rosing by 42.9% from N7.94 trillion as of March 2018 to N11.35 trillion as of August 2020.

This year (2020), according to him, pension funds assets have appreciated by 8.8% to N11.35 trillion by end-August 2020 from N10.43 trillion by end-January 2020 amid very low return rates on government securities.

Patoma Admin by — November 7, 2020 in Others 0
NSITF Chairman calls for alternative strategies to retool Nigeria’s economy … Asks for a review of PRA 2014

From L- Mr Val Ojuma, MD, FBN Insurance, Mr Akin Ogunbiyi, Chairman of Mutual Benefit Assurance, Mrs Idu Ogbuasa, MD of Access Plc, Mr. Austin Enajomo-Isire,  Chairman, Nigeria Social Insurance Trust Fund, NSTIF and Mrs Adetokunbo EKo, Public Relation Officer of Lagos State Pension Commission at the 5th Concference of National Insurance and Pension Correspondents held in Lagos on Wednesday.

 

 

 

By Favour Nnabugwu

The Chairman, Nigeria Social Insurance Trust Fund, (NSITF), Mr Austin Enajomo-Isire, has called for an urgent need to consider alternative strategies to retool the economy for survival and growth.

Enajomo-Isire also look at the need to review of the Pension Reform Act (PRA) to enable those in Real sectors of the economy have access to Insurance and Pension fund to finance their operations.

Chairing the occasion at the 5th National Conference of the National Association of Insurance and Pension Correspondents (NAIPCO), themed “Promoting Bankable Investments Portfolio for Insurance and Pension Sectors, in Lagos today.

NSITF boss who identified the effect of the ravaging COVID-19 pandemic and wanton destruction of life and properties across the country caused by the ‘#EndSARS Mayhem, among many others on the economy.

He noted that the impact of these crisis have resulted into the Nation GDP declining from a growth of 2.2 percent in 2019 to about -4 percent by year end.

He said as a result of this, the Government, Private sector Institutions and individuals have continued to search for economic survival strategies to change the narratives and create new normal.

Enajomo-Isire advocated for a deliberate policy by the authorities, in addition to what is currently obtainable, directly or through moral suasion to invest Insurance and Pension Fund in sectors such as Manufacturing, Agriculture and Aviation, etc with an inbuilt safety net.

“In furtherance to the foregoing, the current restrictive nature of insurance and Pension Funds investment outlets calls for review of the legislations guiding investment of Insurance and Pension Fund. The yelling and plea from the Organised Private sector of Nigeria (OPSN) to create more access to investible FUNDS deserves attention.”

“It is worthy to note and be reminded that Insurance and Pension funds are subject to regulatory guidelines as provided in section 25 of the Insurance Act 2003 as amended and Sect 86 of the PRA 2014, for the purpose of safety and Returns”

“However, a consideration for review of these legislations to enable some special and Real sectors of the economy have access to Insurance and Pension fund to finance their operations, will be most beneficial to the growth and development of the Nation’s Macroeconomic activities.

A deliberate policy by the authorities. in addition to what is currently obtainable, directly or through moral suasion to invest Insurance and Pension Fund in sectors such as Manufacturing, Agriculture and Aviation, etc with an inbuilt safety net, will be a welcome development,” he suggested.

NSTIF boss who stressed the important role of insurance as a catalyst to Nation building and risk transfer mechanism, commended underwriters for rising to their responsibility, noting that “some operators, in recent times have given assurances to the insuring public that reported claims emanating from the EndSARS protest, among others, will be promptly honored, particularly policies with extension that cover Strike, Riot and Civil Commotions (SRCC). This is cheering news for the Industry and the Nation in general.”

Patoma Admin by — November 4, 2020 in Others 0
Aisha Dahir-Umar: A woman with a distinctive impact

By Favour Nnabugwu

Every organization needs a leader irrespective of the gender or age. In working towards growth and development for a better Nigeria, women are though, not sufficiently involved in leadership roles but the few that are there are making impact.

It is pertinent to note that leadership is not gender-specific, it is a set of qualities inherent or cultivated in people who develop themselves into great leaders and the ability to influence and persuade people to follow a particular course of action towards the realization of a goal.

Mrs Aisha Dahir-Umar, the substantive Director-General of the National Pension Commission, PenCom, came with the agenda to make PenCom  a regulator that supervises a transparent and accountable pension industry where employees are required to maintain the highest ethical standards and attain the highest level of integrity in personal and official engagements.

She came into limelight following the removal of the former Director General (DG) of National Pension Commission (PenCom), Mrs. Chinelo Anohu-Amazu, the agency appointed Mrs. Aisha Dahir-Umar as replacement.

She acted in that capacity from 2017 until few weeks back when her appointment was made substantive by the Senate.

It is no news that all qualities required for leadership in building a more sustainable future are feminine in nature. Dahir-Umar is also good builders, good listeners, good communicators and emotionally intelligent. She encourages teamwork, lead by example and produce to reproduce the qualities for growth and development in PenCom.

The reforms she initiated would no doubt have infuriated some entrenched interests who believed they owned the agency. They have been fighting the DG since she came into office and had done everything to undermine her and her agenda for reform.

Part of her achievements

Yet, there is no denying the achievement of a woman who shies from the limelight and would rather her performance speaks for her. In less than three years, she has grown total assets under the Contributory Pension Scheme from  N6.4 trillion  by march 2017 to N11.35 trillion as at August 31, 2020.
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The regulatory agency had equally ensured that pension funds are secured and only invested in viable and secure instruments that assure the owners of the funds that they can access their monies as and when due.

Returns on investments must also be competitive as this is part of the funds used at retirement. Reports show that  a total of N7.52 trillion (66.27 per cent) of the funds has been invested by the Pension Fund Administrators in the Federal Government of Nigeria’s securities, including FGN bonds, treasury bills, agency bonds, Sukuk bonds and green bonds.

This is one of the many characteristics of Mrs. Aishat Dahir-Umar When she brings this attitude into managerial roles, Dahir-Umar may not often realize how poised she is for success but her potential and abilities are undeniable.

Dahir-Umar said that the commission’s mission is to have 20 million contributors by 2020 while she added that the vision is to be an industry that makes significant impact on the nation’s economy.

In one of the many achievement of PenCom under her leadership, she believed that the Micro Pension can be accessed in the event of emergencies to help cushion the effects of business hardship, thereby promoting the sustainability of the business of the contributor.

“With a sustainable source of income, the contributor would be able to make consistent and continuous contributions towards retirement, making it a symbiotic relationship. This in turn builds the economy and the pension industry in the long run”.

“The commission has been able to put in place a robust information and communication technology infrastructure for registration, contribution and benefit administration under the Contributory Pension Scheme.”

She is a woman who naturally empathetic and does value relationships. This distinctive feature enables her to have a strong understanding of what drives and motivates people, and how to acknowledge different people for their performance.

A multitasking personality

One of the key aspects of leadership is the ability to help her team members develop their own skills and strengths only when a leader has a distinctive and natural way of nurturing

The woman during an interview with this writer observed her consistency, demonstration of passion, enthusiasm and an immense capacity to serve and be served by others.

The writer also observed that Dahir-Umar makes bold and wise decisions as a leader while relying on others to be part of her team with an environment that is less authoritarian and more cooperative and family-like, but with solid leadership.

A woman, like Dahir-Umar with a godly compassion will make a difference in her own life, and in the lives of others. She will make a difference in her marriage, in her children, in her place of worship, at the workplace, and everywhere she goes.

Patoma Admin by — October 27, 2020 in Others 0
PenCom applauds PFAs for ROI in eight months

Despite the disruptions caused by the COVID-19 pandemic, which affected most aspects of the Nigerian economy, Pension Fund Administrators (PFAs) in the country performed satisfactorily on Returin On Investment between January and August 2020.

According to the report from Pension Nigeria, no PFA had negative returns on investment (ROI) during the period under review, indicating that all PFAs for Fund I, II, III, and IV recorded positive returns.

This is quite impressive, given that the pandemic had impacted most aspects of the Nigerian economy negatively, causing a 1.95% (year-to-date) decline of the NSE’s All Share index, while the country’s Gross Domestic Product (GDP) contracted by 6.1% in the second quarter of 2020.

12 out of the 22 PFAs performed above the average ROI of 9.28%, for all the funds put together.

NLPC Pension Fund Administrators Limited topped the list (20.33%), followed by Investment One Pension Managers Limited (14.5%), Veritas Glanvills Pensions limited (12.02%), AXA Mansard Pensions (10%), OAK Pensions Limited (9.7%).

Others include Leadway Pensure PFA Limited (9.67%), Crusader Sterling Pensions Limited (9.65%), AIICO Pension Managers (9.61%), IEI-Anchor Pension Managers Limited (9.51%), Fidelity Pension Managers (9.46%), Stanbic IBTC Pension Managers (9.45%), and Radix Pension Fund Managers Limited (9.28%).

Meanwhile, 10 PFAs performed below the average ROI, with Premium Pensions Limited (4.96%) at the bottom of the list, followed by APT Pension Fund Managers (5.81%), First Guarantee Pensions Limited (6.46%), TrustFund Pensions Plc (6.61%), ARM Pension managers (7.0%).

Other Administrators that made the list includes, Nigeria University Pension Management Co. Limited (7.23%), Pension Alliance Limited (7.40%), FCMB Pensions Limited (7.60%), Sigma Pensions (8.86%), NPF Pensions Limited (8.95%).

Also, in the Fund I, Veritas Glanvills Pensions Limited topped the list in average return on investment on Fund I with 21.11%, followed by Stanbic IBTC Pension Managers 12.33%, Sigma Pensions Limited 11.95%, OAK Pensions Limited 11.59%, and IEI-Anchor Pension Managers 9.88%.

Fund II – NLPC Pension Fund Administrators Limited led the pack with an average return on investment of 24.32%, followed by IEI-Anchor Pension Managers Limited 11.59%, Crusader Sterling Pensions Limited 10.74%, Investment One Pension Managers Limited 10.65%, and Nigerian University Pensions Limited 10.25%

Fund III – NLPC Pension Fund Administrators Limited dominated the top 5 list with 24.84%, followed by Investment One Pension Managers Limited 17.58%, Radix Pension Fund Managers 14.78%, Fidelity Pension Managers Limited 12.45%, and AXA Mansard Pensions Limited 11.46%.

Fund IV – NLPC Pension fund Administrators Limited maintained the lead in the top 5 PFAs with 23.59%, followed by Investment One Pension Managers Limited with 15.28%, Fidelity Pension Managers Limited with 12.3%, NPF Pensions Limited with 10.98%, and Veritas Glanvills Pensions Limited with 9.74%.

Patoma Admin by — October 21, 2020 in Others 0
Senate confirms Aisha Dahir-Umar as substantive PenCom DG

The Senate has confirmed the appointment of Mrs. Aisha Dahir-Umar, as the substantive Director-General of the National Pension Commission (PenCom).

Another nominee who was also confirmed by the Senate was Dr Oyindasola Oluremi Oni, from North Central as Chairman.

Also confirmed were Clement Akintola (South-West); Ayim Nyerere (South-East) and Charles Emukowhale (South-South), as commissioners of the PenCom board.

The Senate, however, rejected the confirmation of Hannatu Musa (North-West) because she was unable to present her discharge certificate from the National Youths Service Corps.

Until her confirmation, Dahir-Umar, from the North-East geopolitical zone, held the position in acting capacity.

Patoma Admin by — October 20, 2020 in Others 0
NCRIB, NAIPCO tighten knot on market development

L- Financial Secretary, the National Association of Insurance and Pension Correspondents(NAIPCO), Mr. Mathew Otoijagha; General Secretary, NAIPCO, Mr. Zaka Khaliq; Honourary Treasurer, the Nigerian Council of Registered Insurance Brokers(NCRIB), Mr. Wale Oshodi; PRO, NAIPCO, Mrs. Amaka Obiefuna; Vice President, NCRIB,  Mr. Tunde Oguntade; the President, NCRIB, Mrs. Bola Onigbogi; the Chairman, NAIPCO, Mr. Chuks Okonta; Vice Chairman, NAIPCO, Ms. Ngozi Onyeakusi; Assistant Executive Secretary(AGS), NCRIB, Mr. Tope Adaramola and the Executive Secretary, NCRIB, Mr. Fatai Adegbenro; at a courtesy visit of the executives of NAIPCO to the executives of NCRIB at NCRIB Secretariat in Yaba, Lagos yesterday.

Patoma Admin by — October 14, 2020 in Industry, Trade & Investment 0
Nigerians in informal sector charged to enrol in micro pension scheme

 
By Favour Nnabugwu
Nigerians in the informal sector have been urged to enrol into the Micro-Pension Scheme of National Pension Commission, PenCom to guarantee a fulfilled retired life
He assured that the current Micro Pension scheme of PENCOM under the leadership of Hajiya Aisha Umar is well structured to deliver valuable benefits to citizens in the informal sector.
Comrade Adams Otakwu, chairperson of  Conference of Civil Society of Nigeria while addressing journalists in Abuja on Wednesday, urge youths, artisans, small and medium scale  urged them to take advantage of the scheme to save for the raining day.
“We commend the effective and robust regulation of the Nigerian pension industry in the last four years, as well as the uncommon drive by the National Pension Commission under Aisha Umar and the PENCOM management team to boost micro pension in Nigeria.
“We note the commitment of the current management of PENCOM to reinvigorate micro-pension education at the grassroots across Nigeria, that will have exponential impact on micro economic growth in the country
“We note further that over 60 per cent of citizens in the informal sector who are unawares or ill-informed on the micro-pension are currently being targeted for enlightenment by the Micro Pension Scheme of PENCOM.”
He noted that a good number of players in the  informal sector are willing to enroll in the Micro-Pension Scheme, adding, “we see a visible determination by the National Pension Commission under her current management to scale up sensitization on the benefits, essence and impact of Micro-Pension as remedy for old age miseries.”
Otakwu expressed the readiness of civil society organizations to scale up awareness on the importance of enrolling in the scheme.
“We call on Nigerian youths, artisans, small and medium scale entrepreneurs, and members of the informal sector to enrol en-mass in the Micro-Pension Scheme of PENCOM in order to ensure befitting retirement and old age lives.
“Beyond the ongoing prospect and success of the Micro-Pension Scheme by PENCOM under Aisha Umar and her management team, we have seen growth in pension assets, timely payment of retirement benefits and rapid enhancement of social safety net stimulated through the pension industry,” he said.
Patoma Admin by — October 14, 2020 in News 0
Insurance, pension, other financial operators for NAIPCO confab on Nov 4

By Favour Nnabugwu

Insurance, pension and other financial experts are set to build their investment portfolios to maximise profit.
The operators are going to the deliberate the 2020 annual Conference of the National Association of Insurance and Pension Correspondents (NAIPCO), is billed for November 4, 2020 in Lagos

While the theme for the conference is: “Promoting Bankable Investments Portfolio for Insurance and Pension Sectors,”  the Chairman of the occasion is the Chairman, Nigeria Social Insurance Trust Fund (NSITF), Mr. Austin Enajemo-Isire while the Director General, Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf, is the Keynote Speaker, even as the Chairman, Mutual Benefits Assurance Plc, Dr. Akin Ogunbiyi will be the Special Guest of Honour and Chief Launcher of the new NAIPCO website.

The Commissioner for Insurance/CEO, the National Insurance Commission (NAICOM), Mr. Sunday Thomas and the Acting Director General, National Pension Commission (PenCom), Mrs. Aisha Dahir-Umar, have confirmed their attendance for the conference.

Similarly, the Chairman, Nigerian Insurers Association (NIA), Mr Ganiyu Musa; the CEO, Pension Fund Operators Association of Nigeria (PenOp), Mr. Agudah Oguche, among others, will also be present at the occasion to deliberate on ways  operators can invest in the businesses of the Organised Private Sector of Nigeria(OPSN) and still maximise profit.

Speaking on the preparation for the event, the President, NAIPCO, Mr. Chuks Udo Okonta, said, as a critical stakeholder, it is the desire of NAIPCO that companies in both the insurance and pension sectors build up investment portfolios that will translate to huge returns on investments for shareholders and contributors of the contributory pension scheme.

He said the organised private sector has consistently lamented of low funding for manufacturers as the investment community have accused OPSN of lack of bankable investment projects in which pension and insurance companies can invest in, despite the two sectors having in excess of N11 trillion funds that could be invested in the economy.

For the insurance sector, he stressed that the theme of the conference is apt based on the argument that the sector is destroying value due to the consistent low returns on investment to shareholders.

For the pension sector, he stated that, the theme is also apt as PFAs have limited investment outlets with the ban on investment in treasury bills by the Central Bank of Nigeria(CBN) as well as, the current low yield on bonds, the mainstay investment instrument of the pension industry

Accordingly, he pointed out that the experts will lay bare all available bankable investment outlets for the operators to reap maximum benefits for their shareholders and customers’ benefits.

Moreover, he said, a new NAIPCO website will be unveiled at the conference, while there will be awards for individuals or organisations that have contributed immensely to the growth and development of either the insurance or pension sectors.

Patoma Admin by — October 10, 2020 in Insurance 0
Dahiru-Umar: Need for continuity in PenCom

The need for contiunity in the National Pension Commission (PenCom) is Paramount, following President Mohammadu Buhari, an ardent believer in continuity to allow Mrs. Aisha Dahiru-Umar as the Director-General of the National Pension Commission (PenCom) to finish the teats she started in the Commission

The Executive Director, Centre For Pension Right Advocacy, Ivor Takor said that the appointment of Mrs. Aisha Dahiru-Umar as the Director-General of the National Pension Commission (PenCom) pending Senate confirmation.

Takor, who was a former board member of PenCom, noted that the pension Industry looks forward to Senate’s expeditious confirmation of the appointments that will bring a new lease of life in PenCom and the industry that is emerging as the fasted growing industry in the country, creating jobs and value chain across industries within the financial sector of the economy.

He maintained that it is to the credit of the Acting Director-General of PenCom, Aisha Dahiru-Umar and members’ of the Management Team that PenCom has been able to move the pension industry forward through effective regulation and supervision of the industry; ensuring increased level of compliance by private sector employers; under their watch, small and medium enterprises are increasingly embracing the CPS; expanding the coverage of the CPS through the Micro Pension Plan, which as at June 2020, witnessed 51,974 informal sector workers enrolling into the CPS, contributing N42.1 million; under their watch, RSA registration grew to 9, 039,727 as at second quarter of 2020 growing pension assets to 11.08 trillion naira during the same period; and by ensuring that pension operators are managed by fit and proper persons, thereby ensuring that the industry continue to be insulated from fraud and maladministration thereby securing pension funds and assets.

He posited that it came as a big relief when it was announced as breaking news on Monday 29th September, 2020 that President Muhammadu Buhari has appointed a Chairman, Director General and four Commissioners for the National Pension Commission (PenCom subject to the Confirmation of the Senate, and that the names of the appointees has been forwarded to the Senate in line with Section 19 (3) of the Pension Reform Act 2014.

The Section provides that “The Chairman, Director-General and the Commissioners shall be appointed by the President subject to the confirmation by the Senate”. Section 19 (2) provides that the Board of the Commission shall consist of (a) a part-time Chairman who shall be a fit and proper person with adequate cognate experience in pension matters; (b) the Director-General of the Commission; (c) four full-time Commissioners of the Commission; (d) a representative each of the following agencies and institutions: Head of the Civil Service of the Federation; Federal Ministry of Finance; Nigeria Labour Congress; Trade Union Congress of Nigeria; Nigeria Union of Pensioners; Nigeria Employers Consultative Association; Central Bank of Nigeria; Security and Exchange Commission; Nigeria Stock Exchange; and National Insurance Commission, he added.

By the Organogram of PenCom, he said the Commissioners who together with the Director-General are members of the Executive Committee of Pencom, will be heading various departments of the Commission.

“The Board of PenCom was dissolved in 2015 or thereabout and for almost five years, the Commission has been without a Board. It has become a convention in Nigeria that once a new administration is sworn in at the Federal level, all Governing Boards of Federal Government Agencies are dissolved and reconstituted at the pleasure of the President. In the absence of the Board, PenCom has been managed by a Director-General and currently by an Acting Director-Director General,” he said.

“It is important to note that out of a Board membership of sixteen ten of them are Institutional representatives of critical stakeholders in the pension industry, whose inputs are critical in the formulation and provision of general policy guidelines for the discharge of the functions of the Commission; monitoring and ensure the implementation of policies and programmes of the Commission; and carrying out such other functions as necessary or expedient to ensure the efficient performance of functions of the Commission under the Act. It wasn’t only the absence of the Board that was a setback to the work of PenCom. Pencom for the years that there was no Board, had no Executive Committee.”

“The Board of PenCom was dissolved in 2015 or thereabout and for almost five years, the Commission has been without a Board. It has become a convention in Nigeria that once a new administration is sworn in at the Federal level, all Governing Boards of Federal Government Agencies are dissolved and reconstituted at the pleasure of the President. In the absence of the Board, PenCom has been managed by a Director-General and currently by an Acting Director-Director General,” he said.

Patoma Admin by — October 1, 2020 in Pension 0
THE PROVISIONS OF THE PENSION REFORM ACT 2014 GOVERNING APPOINTMENTS TO THE BOARD OF THE NATIONAL PENSION COMMISSION

 The relevant statutory provisions governing the appointment to are the following:
i. Section 19(3) of the PRA 2014 provides that the Chairman, the Director General and Commissioners shall be appointed by the President subject to confirmation by the Senate.
ii. Sec 19(4) of the PRA 2014 requires that each of the appointees represents each of the six geopolitical zones of Nigeria.
iii. Section 19(5) of the PRA 2014 provides, among other things, that the Chairman and members of the Board of the Commission shall not own controlling shares in any PFA or PFC prior to and during their tenure of office.
iv. Sec. 21(1)(h) of the PRA 2014 provides that a person would cease to be member of board if the President is satisfied that it is not in the interest of the Commission or the public for the person to continue in office.
v. Section 21(2) of the PRA 2014 provides that in the event of a vacancy in the board of the Commission, the President shall appoint a replacement from the geopolitical zone of the immediate past member that vacated office to complete the remaining tenure.
vi. Section 106(4) of the PRA 2014 provides that notwithstanding section 19(2)(a) and 26(2)&(4) of the Act, where a Board of the Commission is yet to be reconstituted after six months of the dissolution of the last Board, the President of the Federal Republic may appoint fit and proper persons with pension cognate experience to constitute the Board at the first instance, subject to confirmation by the Senate.
vii. S. 171 of the Constitution of the Federal Republic of Nigeria 1999 (as amended) vests in Mr. President the power to appoint persons to hold or act in certain offices and to remove such persons. These offices include heads of all Federal Government extra-ministerial departments, howsoever designated.
Section 21(2) of the PRA 2014 provides that “In the event of a vacancy, the President shall appoint a replacement from the geopolitical zone of the immediate past member that vacated office to complete the remaining tenure”. The PRA 2014 did not define what constitutes ‘vacancy’, a situation that created ambiguity as to the exact occasion when S. 21(2) of the PRA 2014 becomes operational. However, it will appear from the context that the subsection contemplates the ceazation of membership of the board through any of the scenarios listed in S. 21(1)(a)-(h) of the PRA 2014, which include resignation, death, bankruptcy, conviction of a felony, removal by the President, etc.
The argument therefore is that Mrs. Amazu’s replacement as DG of PenCom must come from the Southeast zone to complete here remaining term. However, contrary to this submission , a careful review of the relevant provisions of the PRA 2014 would lead to the following conclusions:
a) A reading of both subsections (1) & (2) of Section 21 of the PRA 2014 indicates that they consistently use singular phrases such as ‘a member’; ‘a vacancy’; ‘a replacement’; ‘immediate past member that vacated office’ etc. According, it is submitted that the correct interpretation of S. 21(2) of the PRA 2014 is to hold that it addresses only cases of occasional vacancies created by the exit of individual members of the board of PenCom as enumerated in subsection (1) of the same section, rather than where the whole board is dissolved or all executive management are removed by Mr. President.
b)  S. 21(2) of the PRA 2014 seeks to ensure compliance with the provision of S. 19(4) of the Act, which requires that at all times, the Chairman, Director General and four Commissioners of PenCom shall each represent each of the six geopolitical zones of Nigeria.
c) There had been a precedent which illustrates the application of a similar provision under the defunct PRA 2004. Thus, in 2006 when the then President Obasanjo removed only the Chairman of PenCom, Mr. Fola Adeola, who was from the Southwest, his replacement came from the Southwest when late Chief Wole Adeosun was appointed to complete the term started by Mr. Fola Adeola.
d) The provision of S. 21(2) of the PRA 2014 applies not only to the office of the Director General but also the Chairman and other four Commissioners of PenCom where the respective individuals vacate office leaving others in office.
7. The new appointments to the board of PenCom could also be considered from the perspective of S. 106(4) of the PRA 2014 which provides that notwithstanding section 19(2)(a) and 26(2)&(4) of the Act, where a Board of the Commission is yet to be reconstituted after six months of the dissolution of the last Board, the President of the Federal Republic may appoint fit and proper persons with pension cognate experience to constitute the Board at the first instance, subject to confirmation by the Senate.
It is noted that in 2015, the Federal Government dissolved the Boards of ALL Federal Parastatals including that of PenCom. Since that time, board issues of PenCom were referred to Mr. President through the Secretary to the Government of the Federation (SGF) for approval. Consequently, it our considered opinion that Mr. President has legal right under S. 106(4) of the PRA 2014 to appoint fit and proper persons with pension cognate experience to constitute the board of PenCom at the first instance. This right is absolute and is uninhibited by S. 21(2) of the PRA 2014. Thus, the argument with regards to the requirements of Sec. 21(2) of the PRA 2014 will not stand in the light of S. 106(4) of the PRA 2014 and there is no legal obligation on Mr. President to appoint anyone to complete an unspent term of office of any of the erstwhile DG and Commissioners.
Without prejudice to the foregoing submissions, we would like to draw attention to the overarching provision of S. 171(2) of the 1999 Constitution of the Federal Republic of Nigeria (as amended), which gives the president unfettered powers to appoint or remove head of any Federal Government extra-ministerial department, howsoever called. This includes appointments to the office of the Director General of PenCom. This constitutional power cannot be eroded by any Act of parliament in the light of the provision of S. 1(3) of the Constitution which provides that “if any other law is inconsistent with the provision of this Constitution, this Constitution shall prevail, and that other law shall to the extent of the inconsistency be void”
Patoma Admin by — October 1, 2020 in Pension 0