The Contributory Pension Scheme’s assets increased from the N14.27 trillion reported in June 2022 to N14.36 trillion in July 2022.
According to information gleaned from the National Pension Commission’s (PenCom) unaudited report for the fiscal year ending July 31, 2022, this is the case. The information indicated that N9.05 trillion of the total funds were invested in treasury bills and bonds issued by the federal government.
The money was also spread over other investment portfolios, which included local and international common stocks as well as corporate debt instruments such corporate bonds, corporate infrastructure bonds, corporate green bonds, and supranational bonds.
According to PenCom, there were 9,730,778 RSA holders overall during the time period under examination.
The commission reports that there were 81,674 registered micro pensions as of July.
The CPS was launched in 2004 as a result of the Pension Reform Act.
It offers a contributory system where both the company and the employee make payments to the RSAs of the employees.
The CPS, according to the Pension Fund Operators Association of Nigeria, supports infrastructure development and retirement savings among Nigerian employees.
The operators advised the employees to increase their mandatory deductions, pointing out that doing so would allow them to gradually grow their total savings balances.
In a statement, the association said, “It is also pertinent to note that the Contributory Pension Scheme in its current state has in no small way fostered a savings culture in Nigeria. Before the enactment of the Act, Nigeria did not have large pools of domestic savings.
“Many Nigerians do not have any other form of savings, except through this contributory pension scheme. What we should be doing as a nation is to encourage more of these savings rather than looking to dismantle the system.
“This is probably the only form of savings most Nigerian workers are able to put aside for their retirement years.”
