Business
PenCom Targets 85% Pension Coverage for Nigerian Workers
BY NKECHI NAECHE-ESEZOBOR—Nigeria’s pension industry is set for a major expansion push as the National Pension Commission (PenCom) intensifies efforts to bring more workers into the contributory pension scheme.
Director-General of PenCom, Omolola Oloworaran, disclosed that the commission is aiming to achieve at least 85 percent coverage of Nigerian workers under the scheme. She spoke during a joint annual roundtable session with the leadership of the Trade Union Congress of Nigeria (TUC), part of ongoing stakeholder engagements to deepen transparency, trust, and collaboration in pension administration.
Oloworaran said the commission is deploying multiple strategies, including incentives and expanded outreach, to drive participation across both formal and informal sectors. A key focus is the newly rebranded Personal Pension Plan, previously known as micro pensions, designed to attract a broader segment of Nigerians, particularly those outside formal employment.
“We want a situation where at least 85 percent of Nigerian workers are on the scheme or have the intention to participate,” she said, noting that widening pension coverage remains central to PenCom’s reform agenda.
To boost grassroots adoption, PenCom has introduced accredited pension agents tasked with engaging Nigerians directly in markets, rural communities, and informal workplaces. Unlike Pension Fund Administrators (PFAs), which largely operate at corporate levels, these agents are expected to build trust and drive enrollment at the community level.
The initiative also creates a new business stream, particularly for fintech firms, as accredited agents can earn up to 40 percent of PFA fees on an annuity basis. According to Oloworaran, this model is expected to attract new entrants into the pension ecosystem and accelerate onboarding.
PenCom is also leveraging public sensitisation campaigns to increase awareness. During recent engagements around International Women’s Day, the commission recorded strong participation and growing interest, especially among women.
Despite these efforts, Oloworaran acknowledged that compliance within the formal sector remains a significant challenge. She stressed the need for stronger collaboration with labour unions to enforce compliance, particularly among employers who fail to remit pension contributions.
At the subnational level, pension adoption remains uneven, with only eight out of Nigeria’s 36 states demonstrating significant compliance. PenCom said it is intensifying engagements with state governments and labour organisations to improve adoption rates.
The commission also highlighted the flexibility of the Personal Pension Plan, which allows voluntary contributions for individuals, including provisions for parents to save on behalf of their children from birth.
Oloworaran expressed optimism about the future of the industry, noting that ongoing reforms, expanded participation channels, and increased stakeholder collaboration would position Nigeria’s pension system for stronger growth and sustainability.
The post PenCom Targets 85% Pension Coverage for Nigerian Workers appeared first on Business Today NG.
BY NKECHI NAECHE-ESEZOBOR—The National Insurance Commission (NAICOM), has revoked the certificate of registration for Royal Exchange Prudential Life Insurance PLC over its failure to meet the statutory minimum capital requirement under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The cancellation, which took effect on Plc August 3, 2026, The regulator also ordered the immediate winding up of the firm’s operations.
The action was executed under the legal powers granted to the regulatory authority by the Nigerian Insurance Industry Reform Act (NIRA) 2025.
According to a notice signed by Deputy Commissioner (Technical) Decent Jankara, titled “Notice Of Cancellation Of Certificate Of Registration Of Royal Exchange Prudential Life Insurance Plc”, the regulator appointed Titilayo Akinlawon (SAN)as Receiver and Provisional Liquidator to oversee the winding up of its affairs.
The notice added that “The appointed Receiver is mandated to take control of the company’s affairs, liquidating its assets and settling its outstanding liabilities in strict accordance with NIRA 2025 regulations and extant insurance guidelines.”
“Relevant stakeholders and financial institutions have been instructed to cooperate fully with the Receiver during the official takeover and winding-up proceedings.”
This development comes days after NAICOM announced the completion of the insurance sector recapitalisation exercise and published a list of 43 insurance and reinsurance companies that met the July 31, 2026 compliance deadline.
The post Recapitalisation: NAICOM Revokes Royal Exchange Prudential Life Insurance License appeared first on Business Today NG.
The Director-General of the Nigeria Civil Aviation Authority (NCAA), Chris Najomo, has cautioned against any further reduction in the regulator’s statutory funding, warning that such a move could weaken Nigeria’s aviation safety oversight.
Mr Najomo spoke on Thursday at a public hearing by the House of Representatives Committee on Aviation on the proposed review of the allocation of the five per cent Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC) at the National Assembly Complex in Abuja.
He said the NCAA supported adequate funding for all aviation agencies but warned that changing the existing revenue-sharing formula without considering the regulator’s responsibilities could affect its ability to discharge its statutory mandate.
According to him, the TSC accounts for about 85 per cent of the NCAA’s revenue, making the charge critical to the authority’s operations.
He contrasted this with the Nigerian Airspace Management Agency (NAMA), which generates a substantial portion of its revenue from commercial charges paid by aircraft operators for air navigation services.
Mr Najomo cited the International Civil Aviation Organisation’s (ICAO) Policies on Charges for Airports and Air Navigation Services, Doc 9082, which provides guidance on how costs associated with air navigation services should be recovered.
He said the cost of such services should principally be recovered from aircraft operators that use them rather than through passenger-based charges such as the TSC.
He explained that any further reduction in the NCAA’s statutory funding could have implications for the authority’s ability to maintain effective safety oversight across the country’s civil aviation industry.
He told lawmakers that the authority could not responsibly guarantee the same level of safety oversight if its funding was reduced without an alternative and sustainable source of revenue.
The warning comes as lawmakers consider proposals to review the distribution of the five per cent TSC and CSC among aviation agencies.
The debate has also attracted concerns from airline operators, who argue that the TSC has become a financial burden on domestic carriers and have proposed replacing the percentage-based charge with a fixed levy.
The Airline Operators of Nigeria (AON), represented at the hearing by former Managing Director of NAMA, Roland Iyayi, urged the National Assembly to abolish the five per cent TSC and replace it with a flat-rate charge similar to the Passenger Service Charge collected by the Federal Airports Authority of Nigeria.
Mr Iyayi argued that the percentage-based system places additional pressure on airlines at a time when operators are grappling with high fuel, maintenance and other operating costs.
The AON also proposed increasing NAMA’s share of aviation revenues and establishing a dedicated Aviation Development Fund to finance infrastructure and other sectoral needs.
Other aviation experts oppose equal funding treatment
Mr Najomo, however, said any additional funding required by NAMA should first be pursued through improved collection of its statutory commercial revenues, greater operational efficiency and stronger corporate governance.
He added that targeted government support could be considered for strategic capital infrastructure where necessary, in line with ICAO policies and international best practice.
Other aviation experts at the hearing also warned against treating the regulator and aviation service providers in the same way under a revised funding arrangement.
Musa Nuhu, a former Nigeria representative on the ICAO Council and immediate past director-general of the NCAA, said the regulator had a distinct responsibility that should not be weakened by changes to the funding structure.
Nigeria’s Permanent Representative to ICAO, Mahmud Ben-Tukur, similarly stressed the importance of maintaining the independence and financial capacity of the aviation regulator.
They argued that while aviation agencies perform complementary functions, responsibility for safety oversight of Nigeria’s civil aviation industry rests with the NCAA.
READ ALSO: NCAA threatens sanctions as Royal Air Maroc allegedly defies regulatory authority
Speaking virtually, Bernard Aliu, a former Nigeria permanent representative to ICAO and former president of the ICAO Assembly, and Harold Demuren, a former director-general of civil aviation, also backed the call to preserve the NCAA’s financial independence.
They said a strong and adequately funded regulator was essential to maintaining Nigeria’s aviation safety oversight system and compliance with international aviation standards.
The public hearing was attended by members of the National Assembly’s aviation committees, including their chairmen, Abdulfatai Buhari and Abdullahi Idris Garba, as well as heads of aviation agencies, airline operators and other industry stakeholders.
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