The National Pension Commission has disclosed that the total pension fund assets under the Contributory Pension Scheme have risen to N21.92tn as of October 2024, with contributions from 10.53 million registered participants.
The commission further anticipates that the assets will surpass N22tn by the end of the year.
The disclosure was made by the Director-General of PenCom, Ms Omolola Oloworaran, during the 2024 PenCom Media Conference held in Abuja on Thursday.
She highlighted the Commission’s commitment to ensuring the safety of contributors’ funds through prudent management and sustainable growth strategies.
Oloworaran stated, “As of October 2024, the CPS has recorded 10.53 million registered contributors and boasts pension fund assets of N21.92tn. These numbers reflect our unwavering commitment to fund safety, prudent management, and sustainable growth.”
However, she noted the economic challenges impacting the pension fund, including high inflation, naira devaluation, and the lingering effects of unorthodox monetary policies, which have eroded the real value of pension funds and reduced contributors’ purchasing power.
To address these challenges, PenCom has undertaken a review of its Investment Regulations, focusing on diversifying investments into inflation-protected instruments, alternative assets, and foreign-currency-denominated investments.
In addition to ensuring fund safety, the Commission is prioritising the expansion of pension coverage. Oloworaran explained that PenCom plans to revamp the Micro Pension Plan and leverage technology to encourage participation from the informal sector.
This effort is aimed at enabling more Nigerians to save for retirement while promoting inclusive growth and financial security.
The PenCom DG noted, “However, the economic realities of 2024 and preceding years present unique challenges. High inflation, the devaluation of the naira, and the lingering effects of unorthodox monetary policies have eroded the real value of pension funds, impacting contributors’ purchasing power.
“To address these challenges, PenCom has initiated a comprehensive review of the Investment Regulations, focusing on diversifying pension fund investments into inflation-protected instruments, alternative assets, and foreign-currency denominated investments. Our goal is to safeguard contributors’ savings and ensure resilience against future economic volatility.”
She also addressed delays in the payment of retirement benefits to retirees of Federal Government treasury-funded Ministries, Departments, and Agencies.
According to her, N44bn has been released under the 2024 budget appropriations to settle accrued pension rights for retirees from March to September 2023.
She noted that the Commission is working closely with the Federal Government to institutionalise a sustainable solution that ensures retirees receive their benefits promptly.
She said, “We are also addressing delays in retirement benefit payments to retirees of Federal Government treasury-funded MDAs.
“Recently, N44bn was released under the 2024 budget appropriations to settle accrued pension rights for retirees from March to September 2023. Moving forward, we are working with the Federal Government to institutionalise a sustainable solution, ensuring retirees receive their benefits promptly and without undue stress.”
Oloworaran further announced the launch of an e-application portal for Pension Clearance Certificates in October.
This platform allows companies to seamlessly apply for and receive certificates online.
So far, 38,528 PCCs have been issued, a development she said enhances the ease of doing business and ensures compliance.
Also, she revealed that the Pension Industry Shared Service Initiative is in its advanced stages of implementation.
This initiative aims to digitise pension contributions and remittances, resolving discrepancies caused by incomplete remittance details and ensuring seamless processing of Retirement Savings Account contributions.
To improve the retirement process, the commission has introduced a revised programmed withdrawal template.
The updated template simplifies access to voluntary contributions and adjusts the threshold for en-bloc payments in line with the new minimum wage.
Looking ahead, Oloworaran emphasised that PenCom plans to integrate technology into every aspect of the pension industry in 2025.
She said this integration would enhance accessibility, reliability, and sustainability within the system, while also calling on the media to support the Commission’s efforts by raising public awareness about the CPS.
The DG expressed gratitude to the media for their role in enlightening Nigerians about the CPS and reiterated the importance of collaboration in achieving PenCom’s goals.