Stanbic IBTC backs PenCom reforms to enhance Nigeria’s pension system

Stanbic IBTC Pension Managers Limited, a key subsidiary of Stanbic IBTC Holdings PLC, has publicly reaffirmed its strong backing for the National Pension Commission’s (PenCom) latest reforms, unveiled today, which are set to revolutionize Nigeria’s pension system by enhancing flexibility, inclusion, and global accessibility.

The new regulatory framework introduces two pioneering pension options—the Personal Pension Plan (PPP) and Foreign Currency (FCY) Pension Contributions—tailored to meet the diverse needs of Nigeria’s evolving workforce, from informal sector workers to expatriates, marking a significant step toward a more inclusive retirement savings ecosystem.

The Personal Pension Plan (PPP), an evolution of the former Micro Pension Plan, empowers self-employed individuals and informal sector workers to save for retirement at their own pace, while allowing formal sector employees to supplement mandatory contributions with voluntary savings.

Participants can make flexible contributions as income allows, access 50% of their funds after three months of initial deposits for emergencies, and select between conservative or growth-oriented investment funds, with tax-free benefits after five years.

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Complementing this, the FCY Pension Contributions framework enables Nigerians earning in foreign currency—whether abroad or in Nigeria—to save in United States Dollars (USD), protecting against naira depreciation and unlocking global investment opportunities like Eurobonds and Exchange Traded Funds.

Withdrawals from the contingent portion are permitted after six months, with long-term balances preserved for retirement and payable in USD or converted to naira at the contributor’s discretion.

Olumide Oyetan, Chief Executive of Stanbic IBTC Pension Managers, hailed PenCom’s forward-thinking strategy in a statement released this afternoon, noting, “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.”

He further emphasized the company’s commitment, adding, “Our focus is on promoting financial inclusion, trust, and lifelong retirement planning, ensuring that more Nigerians can participate in the pension system regardless of where or how they earn.” With over 20 years of leadership in the pension sector, Stanbic IBTC is aligning its digital-first approach with PenCom’s vision, positioning Nigeria’s pension landscape as a competitive, technology-driven model on the global stage.