Why I Introduced Contributory Pension – Obasanjo

• Obasanjo reveals challenges retirees faced accessing pensions as key driver behind implementing pension reforms, leading to CPS establishment
• Meeting with PenOp CEO, Obasanjo expresses satisfaction with pension reforms’ impact, emphasizes continual improvement of pension administration in Nigeria

Former President Olusegun Obasanjo has revealed that the challenges faced by retirees in accessing their monthly pension served as a significant impetus for his administration’s decision to implement pension reforms in 2003, leading to the establishment of the Contributory Pension Scheme (CPS).

In a recent meeting with the Chief Executive Officer of the Pension Fund Operators Association of Nigeria (PenOp), Obasanjo articulated his motivations behind the pension reforms.

He expressed his concern over the difficulties encountered by pensioners, particularly retired military personnel, in collecting their pensions, which prompted his administration to initiate reforms aimed at privatizing pension management and aligning it with global best practices.

Reflecting on the growth of pension assets over the past two decades, Obasanjo expressed satisfaction with the positive impact of the reforms, noting the unexpected rapid growth of pension assets and its beneficial effects.

He emphasized the importance of continually improving pension administration in Nigeria, underscoring the need for sustained efforts to ensure the efficiency and effectiveness of the pension system in the country.