By Kelechi Mgboji
Assistant Business Editor
Both the National Pension Commission (PenCom) and the National Insurance Commission (NAICOM) are in a mess with question marks over leadership, competence, and the usual fair of alleged corruption.
Insurance Commissioner, Mohammed Kari, is the head of NAICOM and George Onekhena the finance director. They allegedly midwifed the collapse of National Insurance Corporation (NICON) and Lion of Africa Insurance respectively.
Industry players alleged that the past records of Kari and Onekhena make them statutorily unqualified to hold any sensitive public post.
In the case of Kari, a White Paper was issued by the federal government which barred him from holding public office.
N18 billion yearly share by PenCom
Pension industry assets managed by Pension Fund Administrators (PFAs) are estimated at about N5.30 trillion.
Earnings accruing to PenCom from its 0.03 percentage share of such assets amount to over N18 billion yearly. This does not include budgetary allocation.
There is unease in PenCom, headed by Chinelo Anohu-Amazu, over alleged mismanagement of the N18 billion yearly share, which amounts to about N100 billion in the past five years.
Vested interest
Beyond the allegation of vested interest (being also a player) in the industry, Anohu-Amazu exercises a lot of influence as a regulator.
Her family members are said to have significant stakeholding in Premium Pension Limited (PPL).
After Wilson Ideva was removed as the chief executive officer (CEO) of First Guarantee Pension Limited (FGPL) he was appointed and remains the CEO of PPL.
Anohu-Amazu’s mother, Virgy Anohu, served two terms (totalling 10 years) as director on the board of PPL and was recently succeeded by her son, Victor Anohu, the elder brother of Anohu-Amazu.
Stakeholders are asking questions about the management of the N18 billion that accrues to PenCom yearly as its share of assets managed by all PFAs.
The sharing of earnings among all parties is such that PFAs, Pension Custodians, and PenCom, each takes a cut from a pool of 2.5 per cent of industry earnings from total assets under management.
PFAs take 1.5 per cent, Custodians 0.07 per cent, PenCom 0.03 per cent.
In the past three years when the net worth of contributions hit over N4.5 trillion, PenCom has received 0.03 per cent of that amount, meaning over N18 billion yearly.
PenCom is expected to be one of the government’s cash cows, but there is no record that Abuja has ever drawn one kobo from it.
How much has PenCom earned in the five years since the industry became profitable? How much is its remittances to government? Did the PenCom management embezzle the money? Or was all the money spent on its personnel of fewer than 100?
Demand for PenCom’s probe
These are some of the issues that demand enquiry
