Leadway Pensure, a licensed Pension Fund Administrator (PFA) in Nigeria, has reaffirmed its commitment to securing the financial future of Nigerians by emphasising the benefits of Additional Voluntary Contributions (AVC).
This was highlighted during a recent interactive webinar hosted by the company, titled “Beyond the Paycheck: Learn Winning Strategies to Boost Your Savings.”
The session provided participants with practical insights, guidance, and real-time strategies for optimising retirement savings. It demystified AVC and outlined steps to help Nigerians build a stronger retirement fund.
The webinar featured two pension experts: Peter Mould, Benefits Review and Processing Unit Team Lead, and Gloria Daniels, Customer Relationship Manager, both of Leadway Pensure PFA. They demystified AVC and provided actionable steps to help Nigerians build a stronger retirement fund.
Speaking on the Importance of Additional Voluntary Contributions, Peter Mould, Benefits Review and Processing Team Lead, Leadway Pensure asserted: “Retirement planning goes beyond setting aside a portion of your paycheck. It involves creating a well-structured strategy that ensures financial stability and peace of mind in your golden years. AVC allows individuals to contribute extra funds to their Retirement Savings Account (RSA), helping them build a more secure financial future.”
He also shed light on how participants can get started with AVC, He added: “Starting your additional voluntary contributions is simple. You can either increase your monthly contributions or make lump-sum payments. The key is to take the first step and commit to securing a better future for yourself,” he stated.
Gloria Daniels, Customer Relationship Manager, Leadway Pensure also highlighted SureCal, Leadway Pensure’s financial planning tool, designed to help users calculate their retirement savings needs.
She said: “SureCal is an intuitive financial dashboard that enables individuals to take control of their retirement future. It provides clarity on how much they need to save to achieve their retirement goals.” “Business owners and HR professionals play a critical role in fostering financial security among employees. By educating their workforce about the benefits of SureCal and AVC, they not only help employees secure their future but also cultivate a culture of financial responsibility.” She concluded.
The webinar also addressed common concerns, such as: what happens to AVC when changing jobs or relocating and the importance of staying informed about the latest PENCOM regulations. The session concluded with a call to action, urging participants to take proactive steps toward securing their retirement.

By Sola Alabadan

Out of the 36 states in Nigeria, the National Pension Commission (PenCom) has affirmed that only 10 states which are: Lagos, Osun, Kaduna, Ekiti, Edo, Ondo, Delta, Benue, Anambra, Jigawa and Federal Capital Territory (FCT), have started implementing the Contributory Pension Scheme in full, as at December 31, 2024.
For a state to implement the CPS in full, the state is required to enact a law on CPS, establish a Pension Bureau, register its employees with Pension Fund Administrators (PFAs) and commence remittance of pension contributions.
The state is also required to carry out Actuarial Valuation, commence funding of Accrued Pension Rights, procure Group Life Insurance for its employees, and open and fund a Retirement Benefits Bond Redemption Fund Account with the Central Bank of Nigeria (CBN) or PFA.
Section 2(1) of the Pension Reform Act (PRA) 2014 stipulates that the CPS applies to all public sector employees across the Federation, including the Federal Capital Territory, states, and local governments, as well as the private sector.
However, in line with the 1999 Constitution of the Federal Republic of Nigeria (as amended), state governments have the constitutional right to legislate on pension matters within their jurisdictions.
Consequently, state governments are required to domesticate the CPS by enacting appropriate pension laws within their states.
In August 2006, the National Council of States adopted the CPS for all states and local governments, but many states are yet to implement the CPS in full.
To support this adoption, PenCom developed a Model State Pension Law, enabling state governments to modify it according to their unique needs.
PenCom reviews draft state pension laws and guides states throughout the implementation process.
Meanwhile,PenCom also informed that Jigawa State remits contributions under the Contributory Defined Benefits Scheme (CDBS).
The Commission stated that 20 other states that have enacted laws to adopt the CPS but have not yet made significant strides towards implementation are: Abia, Adamawa, Bauchi, Bayelsa, Ebonyi, Enugu, Gombe, Imo, Kano, Katsina, Kebbi, Kogi, Nasarawa, Niger, Ogun, Oyo, Rivers, Sokoto, Taraba, and Zamfara.
PenCom urges these states to accelerate their efforts toward full implementation of the CPS.
This includes the timely remittance of both employer and employee pension contributions. By taking decisive action, these states can align with the pacesetters in ensuring a secure and sustainable retirement scheme for their workforce.
However, PenCom lamented that these six states have yet to commence implementation of the CPS: Akwa Ibom, Borno, Kwara, Plateau, Cross River, and Yobe.
PenCom therefore encouraged these states to expedite the enactment of their CPS laws and take immediate steps toward full implementation to ensure a secure and sustainable pension system for their workforce.
The transition from the Defined Benefits Scheme (DBS) to the CPS at the state and local government levels is both a significant and inevitable step. Even states that have not transitioned will ultimately need to adopt the CPS. The scheme is designed to ensure that all retirees receive their benefits in a timely manner, providing a sustainable and secure retirement for all public sector employees.
The CPS offers a long-term solution to the pension liabilities that many states currently face. By failing to address pension arrears, states are inadvertently creating a financial burden for future generations, as these liabilities will continue to grow. Adopting the CPS now will help states avoid these escalating costs and provide a more secure financial future for both retirees and taxpayers.
Moreover, the CPS ensures fiscal discipline by accurately determining and systematically settling pension obligations while also making funds available at the point of retirement for the prompt payment of benefits. This prevents the accumulation of pension arrears, contributing to the financial stability of the public sector.
PenCom remains steadfast in its commitment to driving nationwide compliance with the CPS. The Commission will continue to engage with non-compliant states, providing necessary guidance, advisory support, and technical expertise to facilitate their transition. A pension-secure Nigeria is not just a vision but an achievable reality. However, this can only be realised when all states demonstrate commitment by fully embracing the CPS. PenCom remains fully committed to the effective regulation and supervision of the pension industry.

The National Insurance Commission (NAICOM) is excited by the passage of the Insurance Reform Bill by the Federal House of Representatives. This followed the passage of the Bill by Upper Chamber earlier in December 2024. This is a milestone achievement that marks yet another significant step towards transforming the insurance industry in Nigeria.

“The National Insurance Commission (NAICOM) is enthusiastic about the prospects of the bill receiving assent from President, which will pave the way for the implementation of its provisions.

“As the apex regulator of the insurance industry, NAICOM is committed to ensuring that the sector contributes positively to Nigeria’s financial landscape. We believe that by the time the Insurance Reform Bill is signed into Law, it will have a profound impact on the industry, leading to improved penetration, increased public confidence, and enhanced competitiveness.

“We salute the leadership of the National Assembly for their efforts in passing the bill and look forward to its assent by Mr. President. We are confident that the Reform Bill will usher in a new era of growth and development for the insurance industry in Nigeria,” the Commission stated.