Ondo to use pension funds for infrastructure

PenCom DG Ms. Omolara Oloworaran(left ); Ondo Governor, Dr. Lucky Aiyedatiwa(middle) and the DG, Ondo State Pension Commission, Mr. Babatunde Adefusi-Owate, during visit

• PenCom seeks amendment to Ondo Pension Law

From Henry Uche

Governor Lucky Aiyedatiwa of Ondo State has announced that the state is exploring the use of pension funds to drive infrastructural development.

The governor made the statement on Tuesday, April 15, at a meeting in Akure with a delegation from the National Pension Commission (PenCom), led by Director General Ms Omolola Oloworaran. The PenCom team visited to discuss pension reforms aimed at enhancing retiree welfare and ensuring compliance with the Contributory Pension Scheme (CPS).

Governor Aiyedatiwa praised the role of pension funds in economic growth and commended PenCom’s proactive approach. He reaffirmed his commitment to fully implementing the CPS in Ondo State, noting that the Ondo State Pension Commission (OSPEC) scored 72.44% in pension compliance during PenCom’s last Routine Inspection. Aiyedatiwa expressed his goal to raise this score to 95% by the next inspection, as challenged by Ms Oloworaran.

Ms Oloworaran proposed amendments to the Ondo State Pension Law, including a Minimum Pension Guarantee (MPG) to protect vulnerable retirees and an Irrevocable Standing Payment Order (ISPO) to ensure consistent pension remittances across administrations.

She also recommended making a Pension Compliance Certificate (PCC) mandatory for business licensing, contract awards, and registration renewals to boost employer accountability. She highlighted concerns from OSPEC’s recent inspection, urging swift action to improve compliance.

Aiyedatiwa assured PenCom that Ondo State would address most of these issues before the next inspection, reinforcing his administration’s focus on retiree welfare and economic development through pension fund utilisation.