The National Pension Commission has reported that total pension fund assets under the Contributory Pension Scheme reached N21.92tn as of October 2024, driven by contributions from 10.53 million registered participants.
The commission projects the assets will exceed N22tn by year-end.
The was disclosed by the Director-General of PenCom, Ms Omolola Oloworaran, during the 2024 PenCom Media Conference held in Abuja on Thursday.
Oloworaran emphasized the Commission’s dedication to safeguarding contributors’ funds through prudent management practices and sustainable growth strategies.
She said “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 acknowledged the economic challenges affecting the pension fund, including high inflation, naira devaluation, and the lingering effects of unorthodox monetary policies.
To tackle these challenges, PenCom has reviewed its Investment Regulations, prioritizing diversification 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 discussed 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 to settle accrued pension rights for retirees from March to September 2023.
Oloworaran 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 also announced the launch of an e-application portal for Pension Clearance Certificates in October. This platform enables companies to conveniently apply for and receive certificates online.
So far, 38,528 Pension Clearance Certificates have been issued, a development Oloworaran highlighted as improving the ease of doing business and ensuring compliance.
She also revealed that the Pension Industry Shared Service Initiative is in its advanced stages of implementation.
