Stanbic IBTC Pension Managers Commends PenCom on PPP, FCY Reforms

Ebere Nwoji

Stanbic IBTC Pension Managers, has commended recent reforms  by  the National Pension Commission (PenCom), which aimed  at enhancing flexibility, inclusion, and global access within Nigeria’s pension system.

PenCom, recently introduced two  new regulatory guidelines as distinct pension options, the Personal Pension Plan (PPP) and Foreign Currency (FCY) Pension Contributions, both designed to empower individuals to save for retirement in ways that reflect their evolving work patterns and income sources.

The Personal Pension Plan (PPP), formerly known as the Micro Pension Plan, allows self-employed individuals, and informal sector workers to build retirement savings at their own pace. It also enables 9-5 employees in the formal sector to make additional voluntary contributions beyond the mandatory scheme. 

PenCom said through the PPP, participants could  contribute as they earn, make partial withdrawals  up to 50 percent of their savings after three months of initial deposit when needed, and enjoy flexible investment options suited to their financial goals. 

It said contributions were tax-free after five years, and participants could  choose between conservative and growth investment funds for better control of their savings.

The commission Complemented  this with its newly introduced Foreign Currency (FCY) Pension Contributions framework, which enables Nigerians earning in foreign currency, both those living abroad and those residing in Nigeria, to make pension contributions in United States Dollars (USD). 

According to the commission, the structure allows contributors to safeguard their savings against currency depreciation and access a wider range of global investment opportunities such as Eurobonds, Global Depository Notes, and Exchange Traded Funds. It said withdrawals could  be made after six months from the contingent portion of the account, while long-term balances were  preserved for retirement. 

It further said benefits were payable in USD or converted to Naira at the contributor’s request.

Commenting on the developments, the  Chief Executive Officer Stanbic IBTC Pension Managers,  Olumide Oyetan   commended  the initiative saying it represented PenCom’s forward-thinking approach to broadening participation and accessibility in the pension industry. 

He stated, “These enhancements reflect the evolution of Nigeria’s workforce and the increasing global mobility of Nigerians. Stanbic IBTC Pension Managers will continue to help individuals, whether self-employed, salaried, or earning in foreign currency, take full advantage of these opportunities through expert guidance, transparent processes, and a seamless digital experience.”

Olumide said Stanbic IBTC Pension Fund Managers’  focus was  on promoting financial inclusion, trust, and lifelong retirement planning, ensuring that more Nigerians could participate in the pension system regardless of where or how they earn.

He said with over two decades of leadership in the pension industry, Stanbic IBTC Pension Managers continued to align its service offerings with PenCom’s vision for a more inclusive, technology-driven, and globally competitive pension landscape.