Nigeria’s total pension fund assets reached N21.92 trillion as of October 2024, signaling the resilience of the country’s Contributory Pension Scheme (CPS) despite significant economic headwinds.
This was disclosed during the National Pension Commission’s (PenCom) annual media conference in Abuja.
Key Highlights from PenCom
PenCom’s Director-General, Omolola Oloworaran, reported that the CPS has recorded 10.53 million registered contributors and total assets of N21.92 trillion. “These numbers reflect our unwavering commitment to fund safety, prudent management, and sustainable growth,” she said.
Despite the growth, PenCom acknowledged the erosion of pension value caused by high inflation, currency devaluation, and lingering effects of monetary policies. High inflation has weakened contributors’ purchasing power, reducing the real value of pension savings.
To address these challenges, PenCom is reviewing its Investment Regulations to focus on: Diversifying investments into inflation-protected instruments, exploring alternative assets and investing in foreign-currency denominated assets to hedge against currency volatility. “Our goal is to safeguard contributors’ savings and ensure resilience against future economic volatility,” Oloworaran emphasized.
To improve pension coverage, PenCom is expanding its Micro Pension Plan to integrate informal sector workers. The initiative seeks to increase participation and ensure inclusivity across all workforce segments.
Oloworaran also highlighted efforts to settle outstanding pension liabilities for retirees from Federal Government Ministries, Departments, and Agencies (MDAs): N44 billion has been released under the 2024 budget appropriations to cover accrued pension rights for the period March to September 2023.
PenCom is collaborating with the federal government to establish a sustainable framework for timely payments. “Our goal is to institutionalize a sustainable solution to ensure timely payments, relieving retirees of undue stress,” she added.
PenCom’s strategic reforms, investment diversification, and focus on pension inclusion are crucial to safeguarding contributors’ funds in the face of Nigeria’s economic challenges. The commission’s initiatives aim to balance growth, fund security and contributors’ purchasing power while addressing retirees’ welfare.
