President Bola Tinubu’s appointment of Ms. Omolola Bridget Oloworaran as the new Director-General of the National Pension Commission (PenCom) has raised concerns about compliance with the laws governing the pension industry. Lawyers, speaking exclusively to Nairametrics, suggest that the appointee might not meet the minimum requirements for leading the commission.
Ajuri Ngelale, Special Adviser to the President, announced on Saturday that Ms. Oloworaran is “a finance and banking expert with many years of experience.” She is set to succeed Aisha Dahir-Umar, pending confirmation by the Nigerian Senate. The presidency expects her to bring goal-oriented leadership, driving efficiency and top-tier performance in the National Pension Commission, which regulates the Nigerian Pension Industry.
Oloworaran’s Career
Oloworaran is indeed a finance and banking expert. Nairametrics’ investigation revealed she has over 15 years of experience in the financial services industry. Before her PenCom appointment, she served as the Head of Transaction Banking Operations at FirstBank Nigeria since June 2019, according to her LinkedIn profile. Her FirstBank profile also lists her as Deputy General Manager, Group Head, First Shared Services.
Previously, Oloworaran led the International Business Center at Stanbic IBTC from January 2016 to June 2019, managing international banking operations and fostering global business relationships. From November 2013 to January 2016, she was Head of Global Market Operations. She also worked as a Consultant at FDHL GROUP from May 2013 to November 2013, providing strategic insights and solutions.
Her earlier career includes roles at Renaissance Capital as Finance Manager and Senior Specialist from March 2008 to April 2013. From 2004 to March 2008, she was involved in Treasury Operations at Citigroup. These roles highlight her extensive experience in finance and banking.
Legal Requirements for PenCom DG
The Pension Reform Act 2014 governs the administration of PenCom. Section 26 specifies that the President must appoint a Director-General with 15 years of relevant experience in pension matters, subject to Senate confirmation. The Act states:
“There shall be for the Commission, a Director-General who shall be appointed by the President subject to confirmation by the Senate.
(2) The Director-General shall-
(a) be the chief executive and accounting officer of the Commission;
(b) be responsible for the day-to-day administration of the Commission;
(c) keep the books and records of the Commission, and
(d) possess relevant and adequate professional qualification in pension matters with 15 years cognate experience.”
Oloworaran’s career profile does not demonstrate 15 years of experience specifically in the pension field.
Lawyers’ Perspective
Public interest lawyer and TV personality Barrister Frank Tietie explained to Nairametrics that Section 26 of the Pension Reform Act requires the DG to have experience working in a pension fund administrator (PFA) or a pension fund custodian (PFC). He argued that experience in banking, insurance, or legal practice does not qualify as cognate experience in pension matters.
Tietie stated, “Pension matters refer to the management of workers’ contributions or company contributions for retirement funds, distinct from banking, which deals with monetary issues.” He concluded that appointing a banker as DG PenCom is an anomaly and hopes the Senate will not confirm it. “If the Senate confirms the appointment, it further confirms that the Senate is indeed a rubber stamp Senate,” he said.
Barrister Maxwell Opara, in an exclusive interview with Nairametrics, stated that appointing a person without the requisite 15 years of experience in pension matters as the PenCom DG can be legally challenged. He emphasized that according to pension laws, only someone with extensive experience in pension matters should lead the Commission, not a banker. Opara argued that this development could be contested in court since the president does not have the authority to override the Pension Reform Act, which was established by the National Assembly.
“It is President Bola Tinubu who is breaking the law because the woman did not appoint herself. The appointment does not comply with the Pension Reform Act. The president is acting unilaterally,” Opara said.
Legal Views on Appointment
Constitutional lawyer Chief Festus Ogwuche also told Nairametrics that it is unlawful for the president to appoint a person without 15 years of experience in pension matters as PenCom DG. According to Ogwuche, the pension law mandates that the appointee must have a solid background in pension administration, as stipulated in the Pension Reform Act 2014. He stated, “These conditions were deliberately included in the law. One cannot bypass the law and appoint at will.”
Ogwuche further explained that while Section 171 of the 1999 Constitution grants the president the power to appoint, this power must align with other specific laws validly made under the Constitution. He said, “If the president appoints without adhering to the subsidiary law, even though it is inferior, the appointment is invalid as it does not fulfill constitutional provisions.” Ogwuche stressed that if the president’s appointment does not conform to subsidiary legislation, it is as if no appointment has been made.
A pension expert, who chose to remain anonymous, confirmed that the law requires an appointee to have worked in the industry or have substantial experience in it. However, Oloworaran’s resume does not suggest this, as her career has been primarily in banking operations. “Her entire career appears to be in banking operations, and colleagues do not recall any pension-related experience,” the source said.
Career Backgrounds of Past PenCom DGs and Compliance with Pension Law
Aisha Dahir-Umar
Aisha Umar, the outgoing DG of PenCom, was part of the Pension Reform Committee led by Mr. Fola Adeola in 2003. She served in various capacities at the Bureau of Public Enterprise (BPE) and became a Deputy Director at the Monitoring and Compliance Department. After the establishment of PenCom in 2004, she joined as a Deputy General Manager and served until her appointment as DG fifteen years later. President Muhammadu Buhari submitted her name for Senate confirmation on September 29, 2020.
Chinelo Anohu-Amazu
Chinelo Anohu-Amazu, a lawyer, began her public service career in 2000 as an Adviser at BPE and was a member of the Pension Reform Committee that introduced the Contributory Pension Scheme through the Pension Reform Act 2004. She played a key role in restructuring and privatizing major Nigerian entities and was appointed as the pioneer Commission Secretary/Legal Adviser of PenCom. She rose through the ranks to become the substantive DG from October 2014 to April 2017.
Muhammed K. Ahmad
Muhammed K. Ahmad, the pioneer DG of PenCom, served from December 2012 to December 2014. With 35 years of experience in various public sector organizations and financial services institutions in Nigeria, Ahmad worked as a bank supervisor at the Nigeria Deposit Insurance Corporation (NDIC) and the Central Bank of Liberia, and served as an Independent Non-Executive Director at MTN. He chaired several boards, including Polaris Bank and Credent Capital Advisory. His pension experience was mostly with PenCom, and the Pension Reform Act 2014 was not in effect during his tenure as DG.