CPS: FG makes National Identification Number mandatory for workers

The Federal Government has mandated all workers under the
Contributory Pension Scheme to produce their National
Identification Numbers as part of their pension requirements.

The National Pension Commission disclosed this in a circular
titled, ‘Notice on mandatory use of National Identification Number
for all existing RSA holders’, on Wednesday.

The circular read, “The Federal Government has made it mandatory
that every Nigerian must have a National Identification Number.

“To achieve this, all data generating organisations have been
directed to harmonise their database with the National Identity
Management Commission, whose mandate is to implement the National
Identity System in Nigeria.

“To enable the pension industry comply, PenCom has directed all
Pension Fund Administrators to update the records of their clients.
Consequently, all Retirement Savings Account holders, both active
and retired, are hereby advised to approach their PFAs to provide
their NINs and Bank Verification Numbers, as well as other
mandatory biodata information.”

The Pension Reform Act mandates every employer with a minimum of
three employees to open an RSA for the workers, which would be
funded by both employer and employees.

The employer is required to pay 10 per cent while the workers
are required to contribute eight per cent of total monthly
emolument.

Under the CPS, the PFAs manage the funds which are in the
custody of the Pension Fund Custodians.

The acting Director General, National Pension Commission, Mrs
Aisha Dahir-Umar, said that the assets under the CPS had continued
to rise.

“It is now 14 years since the introduction of the CPS and I am
pleased to note that appreciable progress has been made,” she
said

According to her, the statistics are clear evidence that the CPS
has greatly improved access to retirement benefits for employees in
both the public (Federal Government) as well as the private
sectors.

The PenCom boss also stated that the pension scheme had helped
to improve the issue of funding even though some work were still
needed in that regard.

The President, PenOp, Mrs Aderonke Adedeji, noted that the issue
of the role of pension funds in economic development had moved into
the focus of public attention, particularly with regard to
Nigeria’s growing need for long-term capital.

She explained that successful mobilisation of pension fund
assets and contributions to the economic growth of any nation were
essential policy objectives.

“For the first time, our country can now boast of a long-term
funding base and the impact to date has included the funding of the
government and government projects, development of the capital
market as well as increased foreign development inflows,” she
added.

While this is positive, Adedeji said a note of caution must be
raised in view of recent agitations to access the funds for
infrastructure.

“In principle, the industry has no objections to funding
infrastructure. In fact, there are benefits to doing so. However,
it must be understood that such investments must be in well
structured and credit-worthy instruments. The position is enshrined
in the law and supported by PenCom regulations,” she added.

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