EXPERTS WARN PFAS’ POOR SERVICE COULD UNDERMINE RECAPITALISATION GAINS

Financial experts have warned that poor service delivery by Pension Fund Administrators (PFAs) could undermine the expected benefits of recapitalisation in Nigeria’s pension industry, stressing that stronger financial capacity must be matched by improved service quality and greater accountability.

The experts noted that recapitalisation could strengthen the financial position of pension operators, improve their ability to invest in technology and support more efficient operations. However, they cautioned that increasing capital requirements alone would not address persistent complaints by contributors and retirees about delays, poor communication and difficulties accessing pension services.

They argued that the success of recapitalisation would depend largely on whether pension administrators use their stronger financial positions to improve customer experience, protect contributors’ funds and ensure timely access to retirement benefits.

PFAs play a central role in Nigeria’s Contributory Pension Scheme, managing retirement savings and providing administrative support to workers and retirees. Their performance is therefore critical to public confidence in the pension system, particularly as more Nigerians depend on accumulated pension contributions to support themselves after retirement.

Some contributors have raised concerns about delays in processing retirement benefits, difficulties updating personal information and inadequate responses to enquiries. Experts warned that such challenges could discourage participation in the formal pension system and weaken confidence in the industry.

They also stressed the need for stronger regulatory supervision to ensure that pension operators meet service standards and remain transparent in their dealings with contributors. According to them, the recapitalisation process should be accompanied by measurable performance targets, effective complaint-resolution mechanisms and regular assessments of customer satisfaction.

Technology was identified as another important factor in improving service delivery. Experts said investment in secure digital platforms could make it easier for contributors to monitor their pension balances, update records and access information without unnecessary delays.

They further called on the National Pension Commission to maintain strict oversight of pension operators and ensure that capital reforms translate into tangible benefits for workers and retirees.

The experts maintained that recapitalisation could strengthen the pension industry, but warned that its long-term success would depend on improved operational efficiency, transparency and responsiveness to contributors’ needs.

They added that building public trust must remain a priority if Nigeria’s pension system is to achieve sustainable growth and provide greater financial security for retirees.