Nigeria’s Pension Assets Near N22tn Amid Economic Challenges
Nigeria’s pension fund assets under the Contributory Pension Scheme (CPS) have reached an impressive N21.92tn as of October 2024, with contributions from 10.53 million registered participants. The National Pension Commission (PenCom) revealed these figures during its 2024 Media Conference in Abuja, expressing optimism that the assets will surpass N22tn by year-end.
The Director-General of PenCom, Ms Omolola Oloworaran, highlighted the commission’s unwavering focus on prudent management and sustainable growth despite prevailing economic challenges.
“These numbers reflect our commitment to fund safety, prudent management, and sustainable growth. However, the economic realities of 2024 and preceding years present unique challenges,” Oloworaran stated, referencing the impact of high inflation, naira devaluation, and unorthodox monetary policies on the real value of pension funds and contributors’ purchasing power.
Adapting to Economic Volatility
In response to these pressures, PenCom has initiated a review of its Investment Regulations to diversify pension fund portfolios. The new approach includes investments in inflation-protected instruments, alternative assets, and foreign-currency-denominated investments to safeguard contributors’ savings against economic turbulence.
The commission is also working to address delays in retirement benefits for federal retirees. According to Oloworaran, N44bn has been released under the 2024 budget appropriations to settle accrued pension rights for retirees covering March to September 2023.
“We are collaborating with the Federal Government to institutionalise a sustainable solution, ensuring retirees receive their benefits promptly and without undue stress,” she assured.
Expanding Coverage and Streamlining Processes
PenCom’s focus is not only on resilience but also on expanding the reach of the CPS. Efforts to revamp the Micro Pension Plan are underway, targeting the informal sector to encourage broader participation and ensure financial security for all Nigerians.
To improve efficiency, the commission has launched an e-application portal for Pension Clearance Certificates (PCCs). The platform has issued 38,528 certificates since October, simplifying compliance for businesses and enhancing the ease of doing business.
Further, PenCom is advancing the Pension Industry Shared Service Initiative, which aims to digitise pension contributions and resolve discrepancies in remittances. A revised programmed withdrawal template has also been introduced, simplifying access to voluntary contributions and aligning payment thresholds with the new minimum wage.
A Vision for 2025
Looking ahead, PenCom plans to integrate technology across all aspects of the pension industry by 2025. This digital transformation is expected to improve accessibility, reliability, and sustainability, ensuring the system remains resilient and user-friendly.
Oloworaran called on the media to support the commission’s initiatives by raising public awareness of the CPS, emphasising the pivotal role of collaboration in achieving PenCom’s goals.
“The media plays an essential role in enlightening Nigerians about the CPS,” she said, expressing gratitude for their ongoing efforts and urging continued partnership to drive the sector forward.
