The Pension Industry Leadership Council has reaffirmed its commitment to repositioning pension funds as active drivers of Nigeria’s economic development, moving beyond their traditional role as passive investment vehicles.

The National Pension Commission’s director-general and chairman of the council, Omolola Oloworaran, said this in Lagos during a recent news conference after the council’s meeting.

Ms Oloworaran said there would be a strategic shift aimed at leveraging pension assets to stimulate growth and strengthen financial markets. She noted that the council was committed to redefining the role of pension funds in the economy.

“With this council, we are stepping into a new phase, one defined by leadership, coordination and teamwork.

“This council affirms a very fundamental shift. Pension funds will no longer be passive investors; they will become active drivers of economic development,” Ms Oloworaran said.

According to her, the new direction will see Pension Fund Administrators and Pension Fund Custodians take on stronger stewardship roles, with increased influence in corporate governance and market outcomes.

Ms Oloworaran noted that the council had set up key committees to drive the transformation agenda. She said the committees included: Investment and financial market; innovation, risk and sustainability; policy, strategy and industry development; stakeholder engagement and advocacy; governance and ethics and more.

“Through these committees, we will drive market discipline and improve investment outcomes, while addressing liquidity constraints through engagement across the financial ecosystem,” she said.

Ms Oloworaran noted that the council was working to expand investment opportunities beyond traditional instruments by developing alternative assets and innovative structures to optimise returns.

“We intend to expand investment outlets and build a market that works efficiently over the long term for all pension contributors,” Ms Oloworaran said.

Ms Oloworaran also disclosed that the council was prioritising infrastructure financing as part of efforts to support national development.

“The council is considering a Nigerian pension industry investment consortium to create a fund that will invest in national development projects. It is critical to channel pension capital into infrastructure, while ensuring bankable investment pipelines that preserve returns,” Ms Oloworaran added.

On innovation, Ms Oloworaran said the council would drive digital transformation within the industry, with emphasis on cybersecurity and data protection.

“We will strengthen cybersecurity, enhance data protection and update our industry-wide risk framework to reflect emerging risks,” Ms Oloworaran said.

She further noted that the council was working on a medium-term strategy to harmonise policies, strengthen research and improve performance tracking across the industry.

Ms Oloworaran said efforts were also ongoing to deepen public trust, expand pension literacy and increase participation, particularly among workers in the informal sector.

“Through the Personal Pension Plan, we have commenced a nationwide rollout, and we are already seeing increased participation from the informal sector. We have seen significant increases in pension payouts, in some cases exceeding 1,100 per cent.

This represents real improvements in retirement outcomes. The pension industry is no longer just about safeguarding funds; it is about driving economic growth, because returns on pension assets depend on the success of the economy,” she said.

Ms Oloworaran assured that the council would ensure greater coordination, accountability and impact across the industry.

“What you should expect from us is alignment, leadership with courage, and greater impact for the Nigerian people,” she said.

(NAN)