The pension reforms has been described as one of the best, since Nigeria's return to a democratic dispensation in 1999.
The National Pension Commission's (Pencom) latest monthly report shows that assets under management (AUM) of the regulated pension industry increased by 13.7% year-on-year to NGN12.90trn (USD31.1bn) at end-August, 2021.
This edition of Islamic Finance Weekly anchored by Bukola Akinyele-Yisau features Dr. Adam Abubakar, Lead Consultant on Islamic Finance at ANUTI Ethical Consulting Limited.
He speaks on the evolution of the pension industry in Nigeria and ways Islamic pension fund will provide an avenue for financial inclusion in the country.
According to him, the regulator Pencom since 2004, has done a remarkable work of transforming the pension industry. One of the major achievement recorded by the regulator is to ensure the actual migration from "Defined Benefit Scheme" to the "Contributory Pension Scheme".
He noted that Pencom established a robust legal and regulatory framework for the industry, by introducing the multi-fund structure in 2018 that led to the introduction of ethical fund VI.
He believed the multi-fund structure VI recently issued by the National Pension Commission, PENCOM will boost investments in the non-interest finance market, deepen financial inclusion and stimulate voluntary contribution by retirement savings account, RSA holders.