NIGERIA’S pension system is arguably one of the most successful public policy reforms of the past two decades. Since the contributory pension scheme was introduced in 2004 and strengthened by the Pension Reform Act 2014, pension assets have exceeded N30 trillion, providing millions of workers with retirement savings while supplying long-term capital for the economy.Against that backdrop, the National Pension Commission’s proposal to raise the mandatory pension contribution from 18 per cent to 21 per cent, principally by increasing employers’ contribution by an additional 3.0 percentage points, is understandable. Longer life expectancy, inflation and inadequate retirement income all justify periodic reviews of the scheme.Yet good intentions alone do not make good policy. PenCom should heed the strong objections raised by the Organised Private Sector before proceeding with a reform that risks imposing heavier burdens on already struggling businesses, which account for 70 per cent of pension contributions.The employers’ concerns reflect the harsh realities of doing business in Nigeria today.Manufacturers and other firms contend with soaring energy costs, high borrowing rates, exchange-rate volatility, multiple taxes and levies, poor infrastructure, weak consumer demand and rising logistics costs.Many businesses operate on thin margins and are simply fighting to remain afloat, according to the Manufacturers Association of Nigeria.Adding another mandatory payroll obligation in such circumstances could produce consequences directly opposite to those intended.Faced with higher employment costs, OPS representatives point out that companies may defer recruitment, postpone salary reviews, automate faster than planned, outsource more functions, freeze expansion, or even reduce staff.Smaller businesses, which account for the overwhelming majority of employment, could be pushed further into informality by cutting staffing below pension thresholds, thereby shrinking rather than expanding the contributory pension base.Even several state governments, despite increased FAAC allocations, have refused to implement the CPS more than 20 years since inception. This underlines the financial burden associated with pension contributions, even if this is inexcusable.While stronger retirement security is obviously desirable, sequencing reforms prudently is just as necessary.PenCom deserves credit for seeking to improve workers’ welfare. Nigeria’s retirees routinely face financial hardship, and inadequate retirement income remains a legitimate concern. However, pension reform cannot be isolated from the wider economy.A pension system is only as healthy as the businesses that finance it and the jobs that sustain regular contributions.Indeed, Nigeria already compares favourably with many advanced economies in terms of mandatory contribution rates.The current statutory contribution totals 18 per cent of monthly emoluments, comprising 10 per cent from employers and eight per cent from employees. This broadly aligns with the OECD average mandatory contribution rate.By comparison, the United Kingdom requires a minimum workplace pension contribution of eight per cent of qualifying earnings, split between a minimum employer contribution of three per cent and an employee contribution of five per cent, which includes tax relief. Employers may contribute more voluntarily, but flexibility is built into the system.The United States offers even greater flexibility. Outside Social Security, retirement savings are largely voluntary through employer-sponsored 401(k) plans. Employees contribute an average of about 9.4 per cent of salary, while employers typically match around 4.6 per cent, with contribution levels varying according to company policy rather than a federal mandate. Traditional defined-benefit pensions apply mainly in the public sector.In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Against that backdrop, the National Pension Commission’s proposal to raise the mandatory pension contribution from 18 per cent to 21 per cent, principally by increasing employers’ contribution by an additional 3.0 percentage points, is understandable. Longer life expectancy, inflation and inadequate retirement income all justify periodic reviews of the scheme.Yet good intentions alone do not make good policy. PenCom should heed the strong objections raised by the Organised Private Sector before proceeding with a reform that risks imposing heavier burdens on already struggling businesses, which account for 70 per cent of pension contributions.The employers’ concerns reflect the harsh realities of doing business in Nigeria today.Manufacturers and other firms contend with soaring energy costs, high borrowing rates, exchange-rate volatility, multiple taxes and levies, poor infrastructure, weak consumer demand and rising logistics costs.Many businesses operate on thin margins and are simply fighting to remain afloat, according to the Manufacturers Association of Nigeria.Adding another mandatory payroll obligation in such circumstances could produce consequences directly opposite to those intended.Faced with higher employment costs, OPS representatives point out that companies may defer recruitment, postpone salary reviews, automate faster than planned, outsource more functions, freeze expansion, or even reduce staff.Smaller businesses, which account for the overwhelming majority of employment, could be pushed further into informality by cutting staffing below pension thresholds, thereby shrinking rather than expanding the contributory pension base.Even several state governments, despite increased FAAC allocations, have refused to implement the CPS more than 20 years since inception. This underlines the financial burden associated with pension contributions, even if this is inexcusable.While stronger retirement security is obviously desirable, sequencing reforms prudently is just as necessary.PenCom deserves credit for seeking to improve workers’ welfare. Nigeria’s retirees routinely face financial hardship, and inadequate retirement income remains a legitimate concern. However, pension reform cannot be isolated from the wider economy.A pension system is only as healthy as the businesses that finance it and the jobs that sustain regular contributions.Indeed, Nigeria already compares favourably with many advanced economies in terms of mandatory contribution rates.The current statutory contribution totals 18 per cent of monthly emoluments, comprising 10 per cent from employers and eight per cent from employees. This broadly aligns with the OECD average mandatory contribution rate.By comparison, the United Kingdom requires a minimum workplace pension contribution of eight per cent of qualifying earnings, split between a minimum employer contribution of three per cent and an employee contribution of five per cent, which includes tax relief. Employers may contribute more voluntarily, but flexibility is built into the system.The United States offers even greater flexibility. Outside Social Security, retirement savings are largely voluntary through employer-sponsored 401(k) plans. Employees contribute an average of about 9.4 per cent of salary, while employers typically match around 4.6 per cent, with contribution levels varying according to company policy rather than a federal mandate. Traditional defined-benefit pensions apply mainly in the public sector.In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Yet good intentions alone do not make good policy. PenCom should heed the strong objections raised by the Organised Private Sector before proceeding with a reform that risks imposing heavier burdens on already struggling businesses, which account for 70 per cent of pension contributions.The employers’ concerns reflect the harsh realities of doing business in Nigeria today.Manufacturers and other firms contend with soaring energy costs, high borrowing rates, exchange-rate volatility, multiple taxes and levies, poor infrastructure, weak consumer demand and rising logistics costs.Many businesses operate on thin margins and are simply fighting to remain afloat, according to the Manufacturers Association of Nigeria.Adding another mandatory payroll obligation in such circumstances could produce consequences directly opposite to those intended.Faced with higher employment costs, OPS representatives point out that companies may defer recruitment, postpone salary reviews, automate faster than planned, outsource more functions, freeze expansion, or even reduce staff.Smaller businesses, which account for the overwhelming majority of employment, could be pushed further into informality by cutting staffing below pension thresholds, thereby shrinking rather than expanding the contributory pension base.Even several state governments, despite increased FAAC allocations, have refused to implement the CPS more than 20 years since inception. This underlines the financial burden associated with pension contributions, even if this is inexcusable.While stronger retirement security is obviously desirable, sequencing reforms prudently is just as necessary.PenCom deserves credit for seeking to improve workers’ welfare. Nigeria’s retirees routinely face financial hardship, and inadequate retirement income remains a legitimate concern. However, pension reform cannot be isolated from the wider economy.A pension system is only as healthy as the businesses that finance it and the jobs that sustain regular contributions.Indeed, Nigeria already compares favourably with many advanced economies in terms of mandatory contribution rates.The current statutory contribution totals 18 per cent of monthly emoluments, comprising 10 per cent from employers and eight per cent from employees. This broadly aligns with the OECD average mandatory contribution rate.By comparison, the United Kingdom requires a minimum workplace pension contribution of eight per cent of qualifying earnings, split between a minimum employer contribution of three per cent and an employee contribution of five per cent, which includes tax relief. Employers may contribute more voluntarily, but flexibility is built into the system.The United States offers even greater flexibility. Outside Social Security, retirement savings are largely voluntary through employer-sponsored 401(k) plans. Employees contribute an average of about 9.4 per cent of salary, while employers typically match around 4.6 per cent, with contribution levels varying according to company policy rather than a federal mandate. Traditional defined-benefit pensions apply mainly in the public sector.In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. The employers’ concerns reflect the harsh realities of doing business in Nigeria today.Manufacturers and other firms contend with soaring energy costs, high borrowing rates, exchange-rate volatility, multiple taxes and levies, poor infrastructure, weak consumer demand and rising logistics costs.Many businesses operate on thin margins and are simply fighting to remain afloat, according to the Manufacturers Association of Nigeria.Adding another mandatory payroll obligation in such circumstances could produce consequences directly opposite to those intended.Faced with higher employment costs, OPS representatives point out that companies may defer recruitment, postpone salary reviews, automate faster than planned, outsource more functions, freeze expansion, or even reduce staff.Smaller businesses, which account for the overwhelming majority of employment, could be pushed further into informality by cutting staffing below pension thresholds, thereby shrinking rather than expanding the contributory pension base.Even several state governments, despite increased FAAC allocations, have refused to implement the CPS more than 20 years since inception. This underlines the financial burden associated with pension contributions, even if this is inexcusable.While stronger retirement security is obviously desirable, sequencing reforms prudently is just as necessary.PenCom deserves credit for seeking to improve workers’ welfare. Nigeria’s retirees routinely face financial hardship, and inadequate retirement income remains a legitimate concern. However, pension reform cannot be isolated from the wider economy.A pension system is only as healthy as the businesses that finance it and the jobs that sustain regular contributions.Indeed, Nigeria already compares favourably with many advanced economies in terms of mandatory contribution rates.The current statutory contribution totals 18 per cent of monthly emoluments, comprising 10 per cent from employers and eight per cent from employees. This broadly aligns with the OECD average mandatory contribution rate.By comparison, the United Kingdom requires a minimum workplace pension contribution of eight per cent of qualifying earnings, split between a minimum employer contribution of three per cent and an employee contribution of five per cent, which includes tax relief. Employers may contribute more voluntarily, but flexibility is built into the system.The United States offers even greater flexibility. Outside Social Security, retirement savings are largely voluntary through employer-sponsored 401(k) plans. Employees contribute an average of about 9.4 per cent of salary, while employers typically match around 4.6 per cent, with contribution levels varying according to company policy rather than a federal mandate. Traditional defined-benefit pensions apply mainly in the public sector.In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Manufacturers and other firms contend with soaring energy costs, high borrowing rates, exchange-rate volatility, multiple taxes and levies, poor infrastructure, weak consumer demand and rising logistics costs.Many businesses operate on thin margins and are simply fighting to remain afloat, according to the Manufacturers Association of Nigeria.Adding another mandatory payroll obligation in such circumstances could produce consequences directly opposite to those intended.Faced with higher employment costs, OPS representatives point out that companies may defer recruitment, postpone salary reviews, automate faster than planned, outsource more functions, freeze expansion, or even reduce staff.Smaller businesses, which account for the overwhelming majority of employment, could be pushed further into informality by cutting staffing below pension thresholds, thereby shrinking rather than expanding the contributory pension base.Even several state governments, despite increased FAAC allocations, have refused to implement the CPS more than 20 years since inception. This underlines the financial burden associated with pension contributions, even if this is inexcusable.While stronger retirement security is obviously desirable, sequencing reforms prudently is just as necessary.PenCom deserves credit for seeking to improve workers’ welfare. Nigeria’s retirees routinely face financial hardship, and inadequate retirement income remains a legitimate concern. However, pension reform cannot be isolated from the wider economy.A pension system is only as healthy as the businesses that finance it and the jobs that sustain regular contributions.Indeed, Nigeria already compares favourably with many advanced economies in terms of mandatory contribution rates.The current statutory contribution totals 18 per cent of monthly emoluments, comprising 10 per cent from employers and eight per cent from employees. This broadly aligns with the OECD average mandatory contribution rate.By comparison, the United Kingdom requires a minimum workplace pension contribution of eight per cent of qualifying earnings, split between a minimum employer contribution of three per cent and an employee contribution of five per cent, which includes tax relief. Employers may contribute more voluntarily, but flexibility is built into the system.The United States offers even greater flexibility. Outside Social Security, retirement savings are largely voluntary through employer-sponsored 401(k) plans. Employees contribute an average of about 9.4 per cent of salary, while employers typically match around 4.6 per cent, with contribution levels varying according to company policy rather than a federal mandate. Traditional defined-benefit pensions apply mainly in the public sector.In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Many businesses operate on thin margins and are simply fighting to remain afloat, according to the Manufacturers Association of Nigeria.Adding another mandatory payroll obligation in such circumstances could produce consequences directly opposite to those intended.Faced with higher employment costs, OPS representatives point out that companies may defer recruitment, postpone salary reviews, automate faster than planned, outsource more functions, freeze expansion, or even reduce staff.Smaller businesses, which account for the overwhelming majority of employment, could be pushed further into informality by cutting staffing below pension thresholds, thereby shrinking rather than expanding the contributory pension base.Even several state governments, despite increased FAAC allocations, have refused to implement the CPS more than 20 years since inception. This underlines the financial burden associated with pension contributions, even if this is inexcusable.While stronger retirement security is obviously desirable, sequencing reforms prudently is just as necessary.PenCom deserves credit for seeking to improve workers’ welfare. Nigeria’s retirees routinely face financial hardship, and inadequate retirement income remains a legitimate concern. However, pension reform cannot be isolated from the wider economy.A pension system is only as healthy as the businesses that finance it and the jobs that sustain regular contributions.Indeed, Nigeria already compares favourably with many advanced economies in terms of mandatory contribution rates.The current statutory contribution totals 18 per cent of monthly emoluments, comprising 10 per cent from employers and eight per cent from employees. This broadly aligns with the OECD average mandatory contribution rate.By comparison, the United Kingdom requires a minimum workplace pension contribution of eight per cent of qualifying earnings, split between a minimum employer contribution of three per cent and an employee contribution of five per cent, which includes tax relief. Employers may contribute more voluntarily, but flexibility is built into the system.The United States offers even greater flexibility. Outside Social Security, retirement savings are largely voluntary through employer-sponsored 401(k) plans. Employees contribute an average of about 9.4 per cent of salary, while employers typically match around 4.6 per cent, with contribution levels varying according to company policy rather than a federal mandate. Traditional defined-benefit pensions apply mainly in the public sector.In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Adding another mandatory payroll obligation in such circumstances could produce consequences directly opposite to those intended.Faced with higher employment costs, OPS representatives point out that companies may defer recruitment, postpone salary reviews, automate faster than planned, outsource more functions, freeze expansion, or even reduce staff.Smaller businesses, which account for the overwhelming majority of employment, could be pushed further into informality by cutting staffing below pension thresholds, thereby shrinking rather than expanding the contributory pension base.Even several state governments, despite increased FAAC allocations, have refused to implement the CPS more than 20 years since inception. This underlines the financial burden associated with pension contributions, even if this is inexcusable.While stronger retirement security is obviously desirable, sequencing reforms prudently is just as necessary.PenCom deserves credit for seeking to improve workers’ welfare. Nigeria’s retirees routinely face financial hardship, and inadequate retirement income remains a legitimate concern. However, pension reform cannot be isolated from the wider economy.A pension system is only as healthy as the businesses that finance it and the jobs that sustain regular contributions.Indeed, Nigeria already compares favourably with many advanced economies in terms of mandatory contribution rates.The current statutory contribution totals 18 per cent of monthly emoluments, comprising 10 per cent from employers and eight per cent from employees. This broadly aligns with the OECD average mandatory contribution rate.By comparison, the United Kingdom requires a minimum workplace pension contribution of eight per cent of qualifying earnings, split between a minimum employer contribution of three per cent and an employee contribution of five per cent, which includes tax relief. Employers may contribute more voluntarily, but flexibility is built into the system.The United States offers even greater flexibility. Outside Social Security, retirement savings are largely voluntary through employer-sponsored 401(k) plans. Employees contribute an average of about 9.4 per cent of salary, while employers typically match around 4.6 per cent, with contribution levels varying according to company policy rather than a federal mandate. Traditional defined-benefit pensions apply mainly in the public sector.In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Faced with higher employment costs, OPS representatives point out that companies may defer recruitment, postpone salary reviews, automate faster than planned, outsource more functions, freeze expansion, or even reduce staff.Smaller businesses, which account for the overwhelming majority of employment, could be pushed further into informality by cutting staffing below pension thresholds, thereby shrinking rather than expanding the contributory pension base.Even several state governments, despite increased FAAC allocations, have refused to implement the CPS more than 20 years since inception. This underlines the financial burden associated with pension contributions, even if this is inexcusable.While stronger retirement security is obviously desirable, sequencing reforms prudently is just as necessary.PenCom deserves credit for seeking to improve workers’ welfare. Nigeria’s retirees routinely face financial hardship, and inadequate retirement income remains a legitimate concern. However, pension reform cannot be isolated from the wider economy.A pension system is only as healthy as the businesses that finance it and the jobs that sustain regular contributions.Indeed, Nigeria already compares favourably with many advanced economies in terms of mandatory contribution rates.The current statutory contribution totals 18 per cent of monthly emoluments, comprising 10 per cent from employers and eight per cent from employees. This broadly aligns with the OECD average mandatory contribution rate.By comparison, the United Kingdom requires a minimum workplace pension contribution of eight per cent of qualifying earnings, split between a minimum employer contribution of three per cent and an employee contribution of five per cent, which includes tax relief. Employers may contribute more voluntarily, but flexibility is built into the system.The United States offers even greater flexibility. Outside Social Security, retirement savings are largely voluntary through employer-sponsored 401(k) plans. Employees contribute an average of about 9.4 per cent of salary, while employers typically match around 4.6 per cent, with contribution levels varying according to company policy rather than a federal mandate. Traditional defined-benefit pensions apply mainly in the public sector.In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Smaller businesses, which account for the overwhelming majority of employment, could be pushed further into informality by cutting staffing below pension thresholds, thereby shrinking rather than expanding the contributory pension base.Even several state governments, despite increased FAAC allocations, have refused to implement the CPS more than 20 years since inception. This underlines the financial burden associated with pension contributions, even if this is inexcusable.While stronger retirement security is obviously desirable, sequencing reforms prudently is just as necessary.PenCom deserves credit for seeking to improve workers’ welfare. Nigeria’s retirees routinely face financial hardship, and inadequate retirement income remains a legitimate concern. However, pension reform cannot be isolated from the wider economy.A pension system is only as healthy as the businesses that finance it and the jobs that sustain regular contributions.Indeed, Nigeria already compares favourably with many advanced economies in terms of mandatory contribution rates.The current statutory contribution totals 18 per cent of monthly emoluments, comprising 10 per cent from employers and eight per cent from employees. This broadly aligns with the OECD average mandatory contribution rate.By comparison, the United Kingdom requires a minimum workplace pension contribution of eight per cent of qualifying earnings, split between a minimum employer contribution of three per cent and an employee contribution of five per cent, which includes tax relief. Employers may contribute more voluntarily, but flexibility is built into the system.The United States offers even greater flexibility. Outside Social Security, retirement savings are largely voluntary through employer-sponsored 401(k) plans. Employees contribute an average of about 9.4 per cent of salary, while employers typically match around 4.6 per cent, with contribution levels varying according to company policy rather than a federal mandate. Traditional defined-benefit pensions apply mainly in the public sector.In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Even several state governments, despite increased FAAC allocations, have refused to implement the CPS more than 20 years since inception. This underlines the financial burden associated with pension contributions, even if this is inexcusable.While stronger retirement security is obviously desirable, sequencing reforms prudently is just as necessary.PenCom deserves credit for seeking to improve workers’ welfare. Nigeria’s retirees routinely face financial hardship, and inadequate retirement income remains a legitimate concern. However, pension reform cannot be isolated from the wider economy.A pension system is only as healthy as the businesses that finance it and the jobs that sustain regular contributions.Indeed, Nigeria already compares favourably with many advanced economies in terms of mandatory contribution rates.The current statutory contribution totals 18 per cent of monthly emoluments, comprising 10 per cent from employers and eight per cent from employees. This broadly aligns with the OECD average mandatory contribution rate.By comparison, the United Kingdom requires a minimum workplace pension contribution of eight per cent of qualifying earnings, split between a minimum employer contribution of three per cent and an employee contribution of five per cent, which includes tax relief. Employers may contribute more voluntarily, but flexibility is built into the system.The United States offers even greater flexibility. Outside Social Security, retirement savings are largely voluntary through employer-sponsored 401(k) plans. Employees contribute an average of about 9.4 per cent of salary, while employers typically match around 4.6 per cent, with contribution levels varying according to company policy rather than a federal mandate. Traditional defined-benefit pensions apply mainly in the public sector.In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. While stronger retirement security is obviously desirable, sequencing reforms prudently is just as necessary.PenCom deserves credit for seeking to improve workers’ welfare. Nigeria’s retirees routinely face financial hardship, and inadequate retirement income remains a legitimate concern. However, pension reform cannot be isolated from the wider economy.A pension system is only as healthy as the businesses that finance it and the jobs that sustain regular contributions.Indeed, Nigeria already compares favourably with many advanced economies in terms of mandatory contribution rates.The current statutory contribution totals 18 per cent of monthly emoluments, comprising 10 per cent from employers and eight per cent from employees. This broadly aligns with the OECD average mandatory contribution rate.By comparison, the United Kingdom requires a minimum workplace pension contribution of eight per cent of qualifying earnings, split between a minimum employer contribution of three per cent and an employee contribution of five per cent, which includes tax relief. Employers may contribute more voluntarily, but flexibility is built into the system.The United States offers even greater flexibility. Outside Social Security, retirement savings are largely voluntary through employer-sponsored 401(k) plans. Employees contribute an average of about 9.4 per cent of salary, while employers typically match around 4.6 per cent, with contribution levels varying according to company policy rather than a federal mandate. Traditional defined-benefit pensions apply mainly in the public sector.In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. PenCom deserves credit for seeking to improve workers’ welfare. Nigeria’s retirees routinely face financial hardship, and inadequate retirement income remains a legitimate concern. However, pension reform cannot be isolated from the wider economy.A pension system is only as healthy as the businesses that finance it and the jobs that sustain regular contributions.Indeed, Nigeria already compares favourably with many advanced economies in terms of mandatory contribution rates.The current statutory contribution totals 18 per cent of monthly emoluments, comprising 10 per cent from employers and eight per cent from employees. This broadly aligns with the OECD average mandatory contribution rate.By comparison, the United Kingdom requires a minimum workplace pension contribution of eight per cent of qualifying earnings, split between a minimum employer contribution of three per cent and an employee contribution of five per cent, which includes tax relief. Employers may contribute more voluntarily, but flexibility is built into the system.The United States offers even greater flexibility. Outside Social Security, retirement savings are largely voluntary through employer-sponsored 401(k) plans. Employees contribute an average of about 9.4 per cent of salary, while employers typically match around 4.6 per cent, with contribution levels varying according to company policy rather than a federal mandate. Traditional defined-benefit pensions apply mainly in the public sector.In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. A pension system is only as healthy as the businesses that finance it and the jobs that sustain regular contributions.Indeed, Nigeria already compares favourably with many advanced economies in terms of mandatory contribution rates.The current statutory contribution totals 18 per cent of monthly emoluments, comprising 10 per cent from employers and eight per cent from employees. This broadly aligns with the OECD average mandatory contribution rate.By comparison, the United Kingdom requires a minimum workplace pension contribution of eight per cent of qualifying earnings, split between a minimum employer contribution of three per cent and an employee contribution of five per cent, which includes tax relief. Employers may contribute more voluntarily, but flexibility is built into the system.The United States offers even greater flexibility. Outside Social Security, retirement savings are largely voluntary through employer-sponsored 401(k) plans. Employees contribute an average of about 9.4 per cent of salary, while employers typically match around 4.6 per cent, with contribution levels varying according to company policy rather than a federal mandate. Traditional defined-benefit pensions apply mainly in the public sector.In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Indeed, Nigeria already compares favourably with many advanced economies in terms of mandatory contribution rates.The current statutory contribution totals 18 per cent of monthly emoluments, comprising 10 per cent from employers and eight per cent from employees. This broadly aligns with the OECD average mandatory contribution rate.By comparison, the United Kingdom requires a minimum workplace pension contribution of eight per cent of qualifying earnings, split between a minimum employer contribution of three per cent and an employee contribution of five per cent, which includes tax relief. Employers may contribute more voluntarily, but flexibility is built into the system.The United States offers even greater flexibility. Outside Social Security, retirement savings are largely voluntary through employer-sponsored 401(k) plans. Employees contribute an average of about 9.4 per cent of salary, while employers typically match around 4.6 per cent, with contribution levels varying according to company policy rather than a federal mandate. Traditional defined-benefit pensions apply mainly in the public sector.In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. The current statutory contribution totals 18 per cent of monthly emoluments, comprising 10 per cent from employers and eight per cent from employees. This broadly aligns with the OECD average mandatory contribution rate.By comparison, the United Kingdom requires a minimum workplace pension contribution of eight per cent of qualifying earnings, split between a minimum employer contribution of three per cent and an employee contribution of five per cent, which includes tax relief. Employers may contribute more voluntarily, but flexibility is built into the system.The United States offers even greater flexibility. Outside Social Security, retirement savings are largely voluntary through employer-sponsored 401(k) plans. Employees contribute an average of about 9.4 per cent of salary, while employers typically match around 4.6 per cent, with contribution levels varying according to company policy rather than a federal mandate. Traditional defined-benefit pensions apply mainly in the public sector.In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. By comparison, the United Kingdom requires a minimum workplace pension contribution of eight per cent of qualifying earnings, split between a minimum employer contribution of three per cent and an employee contribution of five per cent, which includes tax relief. Employers may contribute more voluntarily, but flexibility is built into the system.The United States offers even greater flexibility. Outside Social Security, retirement savings are largely voluntary through employer-sponsored 401(k) plans. Employees contribute an average of about 9.4 per cent of salary, while employers typically match around 4.6 per cent, with contribution levels varying according to company policy rather than a federal mandate. Traditional defined-benefit pensions apply mainly in the public sector.In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. The United States offers even greater flexibility. Outside Social Security, retirement savings are largely voluntary through employer-sponsored 401(k) plans. Employees contribute an average of about 9.4 per cent of salary, while employers typically match around 4.6 per cent, with contribution levels varying according to company policy rather than a federal mandate. Traditional defined-benefit pensions apply mainly in the public sector.In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. In South Africa, most occupational pension schemes determine employer and employee contributions through collective bargaining or employment contracts. Total contributions average about 15 per cent of pensionable earnings, but the employer-employee split varies considerably across industries.Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Against these international benchmarks, Nigeria’s mandatory contribution rate is hardly parsimonious.Related NewsDMO unveils August bonds with returns nearing 15%Aradel finance costs surge to N326bn in H1Stock market opens August with N289bn gainIn fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. In fact, many Nigerian employees receive a relatively favourable deal, particularly those whose employers voluntarily absorb part or all of the employee contribution to attract and retain talent, as well as those offering special services such as the military.The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. The more fundamental challenge confronting Nigerian workers is not necessarily the size of pension deductions but the weakness of wages themselves.Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Real incomes have been devastated by persistent inflation that exceeded 30 per cent for prolonged periods before it moderated to around 15 per cent in recent months after a statistical rebasing.Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Food inflation has remained especially punishing, standing at 17.52 per cent in June and rising to 53 per cent in Kogi and above 37 per cent in nine other states.Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Soaring transportation costs, rent, healthcare and children’s education costs have made nonsense of household incomes, especially in urban centres.Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Therefore, a larger pension contribution offers little comfort if workers cannot meet today’s living expenses.Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Inflation also silently destroys retirement savings. A pension fund that grows steadily in nominal terms can still lose substantial purchasing power if inflation consistently outpaces investment returns.For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. For retirees, the true measure of pension adequacy is not the quantum of funds accumulated but what those funds can actually buy.That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. That is why the debate should shift from simply increasing contributions to building an economy capable of preserving the value of retirement savings.The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. The Federal Government’s foremost priority should therefore be to restore macroeconomic stability and increase overall prosperity.A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. A stronger and more stable naira would reduce imported inflation and protect the purchasing power of both workers and retirees. Lower inflation would enable pension assets to generate higher real returns while easing pressure on household budgets.Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Achieving this requires sustained investment in productivity-enhancing infrastructure, especially reliable electricity, efficient transport networks, ports and digital connectivity. Also critical is greater investment in education, research, technology, healthcare and the knowledge economy.Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Such investments will expand productive capacity, reduce dependence on imports, deepen economic diversification and create higher-value jobs.Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Greater prosperity would naturally support higher wages, stronger pension contributions, improved home ownership, better healthcare and a significantly lower cost of living in retirement than what compulsory deductions alone can ever achieve.PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. PenCom should therefore proceed with caution. Before altering contribution rates, it should publish comprehensive actuarial evidence demonstrating the necessity of the increase and commission independent assessments of its likely impact on employment, wages, investment and business competitiveness.The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. The OPS insists that eventual reform should emerge from genuine tripartite dialogue involving government, organised labour and employers. This is the only proper way to proceed.Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Retirement security is an objective worthy of national consensus. But strengthening pensions by weakening the enterprises that fund them would be a costly contradiction.Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other. Nigeria’s workers deserve both secure retirements and a vibrant economy. The country must resist policies that sacrifice one for the other.