The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, announces that Nigeria’s pension fund assets stand at N21.92 trillion as of October 2024. Despite this growth, the industry faces ongoing challenges, which the Commission is addressing through various initiatives.
At the 2024 PenCom Media Conference, Oloworaran shares that one of the key measures being implemented is a comprehensive review of the Investment Regulations. This review aims to improve the management of pension funds in light of Nigeria’s current economic conditions.
As of October 2024, the Contributory Pension Scheme (CPS) has recorded 10.53 million contributors, with pension fund assets expected to reach N22 trillion by year-end. Oloworaran attributes this growth to PenCom’s dedication to ensuring fund safety, prudent management, and sustainable growth.
However, she highlights that the economic challenges of 2024, including high inflation, Naira devaluation, and the effects of unconventional monetary policies, have eroded the real value of pension funds, affecting contributors’ purchasing power. To address these challenges, PenCom is diversifying pension fund investments, focusing on inflation-protected instruments, alternative assets, and foreign-currency-denominated investments.
Oloworaran also discusses PenCom’s efforts to extend pension coverage, especially in the informal sector. The Commission’s revamped micro-pension plan leverages technology to encourage participation from informal workers, making it easier for them to save for retirement.
PenCom is addressing delays in pension benefit payments to retirees from Federal Government treasury-funded MDAs. To resolve this, N44 billion is allocated under the 2024 budget to settle pension rights for retirees between March and September 2023. Moving forward, PenCom is working with the Federal Government to establish a sustainable system for the prompt payment of retirees’ benefits.
Additionally, PenCom has launched an e-Application Portal for Pension Clearance Certificates (PCC), streamlining the application process for companies. So far, 38,528 PCCs have been issued in 2024.
PenCom continues to make progress in the pension industry, despite the challenges. In May 2024, the industry reached a record high of N20.23 trillion in pension assets, marking a N4.12 trillion increase from the previous year. This growth reflects the effectiveness of ongoing reforms and PenCom’s strategic efforts to stabilize and grow Nigeria’s pension system.
, Omolola Oloworaran, announces that Nigeria's pension fund assets stand at N21.92 trillion as of October 2024. Despite this growth, the industry faces ongoing challenges, which the Commission is addressing through various initiatives.){kind=link}