Obasanjo's expectations for the World Pension Summit Africa

Former Nigerian President Olusegun Obasanjo, who enacted a law to decentralise and privatise pension administration in Nigeria in 2004, recently joined CNBC Africa from the World Pension Summit Africa Special to share his expectations for the summit and discuss macroeconomic issues affecting the country. During the interview, Obasanjo highlighted the challenges faced by Nigeria before the pension reform, including delayed payment of pensions to civil servants, retired soldiers, and university lecturers. These issues prompted him to establish a committee to study global best practices in pension administration, leading to the implementation of the contribution pension scheme in Nigeria. The scheme has successfully covered over 7 million salary earners so far, but Obasanjo acknowledged that there is still work to be done to expand coverage. While he expressed satisfaction with the progress made in pension reform, Obasanjo also raised concerns about the need for continued expansion and improvement in the system. He emphasized the importance of saving for national development and pointed out that pension funds and health insurance schemes in Africa represent a significant pool of funds that can be utilized for economic development. Obasanjo cautioned against reckless spending of these funds and stressed the need for prudent management to ensure sustainable growth and expansion. In addition to pension reform, Obasanjo addressed the current macroeconomic situation in Nigeria, specifically the government's consideration of selling assets to shore up finances. He urged for a strategic approach to asset sales to prevent any form of 'cabal' from monopolizing key assets for personal gain. Obasanjo linked the need for asset sales to broader efforts to prevent financial mismanagement and advocated for transparency and accountability in all transactions. When asked about his assessment of the economic policies aimed at lifting Nigeria out of recession, Obasanjo highlighted the critical issue of balancing the country's expenditures with its earnings. He emphasized the importance of building up financial reserves to cushion against economic shocks and underscored the necessity of maintaining a sustainable fiscal policy to ensure long-term stability. Despite divergent views on the current economic strategy, Obasanjo stressed the need for a unified approach to address the root causes of Nigeria's economic challenges and promote sustainable growth for the future.