The National Pensions Regulatory Authority (NPRA) has called on the Social Security and National Insurance Trust (SSNIT) to adopt a more diversified investment approach and accelerate governance reforms to protect the fund from future economic shocks.
The advice follows the aftermath of Ghana’s Domestic Debt Exchange Programme (DDEP), which significantly slashed returns on fixed-income investments and exposed the risks of SSNIT’s concentrated investment strategy.
Speaking at the launch of SSNIT’s 60th anniversary celebrations, NPRA Deputy CEO Victor Azuma Mejida acknowledged SSNIT’s achievements in expanding pension coverage and improving administrative processes.
However, he cautioned that recent economic disruptions from the COVID-19 pandemic to the DDEP have revealed vulnerabilities in the pension system’s financial resilience.
“The DDEP served as a stark reminder that even the most trusted assets carry risk,” Mejida said. “It is important to reflect on these valuable lessons to remain agile in protecting investment income security for stakeholders.”
He urged SSNIT’s board and management to deepen reforms that strengthen governance, embrace innovation, and improve operational efficiency.
He also emphasized the importance of moving beyond traditional investment models to adopt more resilient strategies that can better withstand future fiscal and economic turbulence.
“Let us ensure that regardless of economic woes or fiscal storms, our pension system will be able to honour its social contract with contributors and pensioners,” he added.
The NPRA’s remarks come at a time when public trust in long-term savings schemes has been shaken by Ghana’s recent debt restructuring, which involved losses for major institutional investors including SSNIT.
SSNIT, which manages pensions for over 1.8 million contributors, has come under scrutiny in recent years for its asset concentration, particularly in government securities. While such instruments were previously considered low-risk, the DDEP revealed how vulnerable they are during sovereign debt crises.
Pension experts have welcomed the NPRA’s call, urging SSNIT to explore new asset classes such as infrastructure, private equity, real estate, and offshore investments to mitigate risk and ensure steady returns.
As Ghana navigates post-DDEP recovery under an IMF-backed programme, stakeholders agree that future-proofing SSNIT’s investment and governance framework is crucial to preserving the retirement security of current and future pensioners.
