Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Business News

Pension contributors hit 8.5m, but statistics still show worrying signs

Bamidele Samuel Adesoji by Bamidele Samuel Adesoji
May 15, 2019
in Business News, Politics
Nigeria’s Pension Fund Asset Value
Share on FacebookShare on TwitterShare on Linkedin

The summary of Pension Fund Assets shows that Pension contributors hit 8.56m in February 2019. When compared to the 8.4m plus contributors that had been maintained since December, it can be seen that the number of pension account holders has increased by 1 percent in just one month.

Also, the National Pension Commission (PenCom) report covering February 2019 shows that investments in the Federal Government of Nigeria (FGN) securities hit N6.51trn, up from N6.37trn recorded in the previous month.

According to the latest PenCom report, FGN Securities constitute 73.12 percent of the total Pension Assets Class. A further breakdown shows that FGN Bonds top the asset class under the FGN securities, with N4.49trn; implying 50.43% of the total FGN security.

RelatedPosts

Why regulators, investors should embrace ESG data metrics

Top content ideas for your YouTube channel

The analysis implies that a higher proportion of Pension contributions under the FGN securities are invested in Bonds. Similarly, Treasury Bills (T-bills) is the second most invested with N1.90trn, representing 21.4 percent. Other items under the FGN securities include Agency Bonds, Sukuk, and Green Bonds.

RSA up by 2%: PenCom data also shows that funds in the Retirement Savings Account increased by 2% between January and February 2019. In January, total RSA funds stood at N6.66trn, while it increased to N6.78trn in the period under review. Meanwhile, Nairametrics earlier reported that the sum of N7.42 billion was remitted into the Retirement Savings Accounts (RSA) in the fourth quarter of 2018.

In the report, it was revealed that RSA funds were remitted into 966,155 employees’ accounts, across 2,044 organizations.

Contributors upsurge:  As mentioned earlier, the total number of account holders in Nigeria’s Contributory Pension Scheme hits 8.56m in February 2019.  It should be noted that the total number of account holders on the contributory pension scheme has been hovering around 8.4m since the fourth quarter of 2018.

PenCom in its Q4 report released last month explained that the growth in the industry membership was driven by the Retirement Savings Account (RSA) Scheme, which had an increase of 138,236 contributors representing 1.64 percent during the period.

Worrying Statistics: Further analysis and breakdown of contributors under age 30 improved by 2 percent from 799,169 in January 2019, to 816,656 in February. However, this figure is still low when compared to the other age groups in the report.

In total, contributors under age 30 constituted only 10 percent of the total contributory pension scheme. Specifically, contributors aged 30 and 39 years record the highest with 36 percent of total pension scheme contributors while contributors aged 40 and 49 ranks second.

The statistics further corroborated Nairametrics’ earlier analysis of the low rate of contributors under age 30. According to Nairametrics, the way pensions are designed, the younger your contributors the better the pension funds. This is because younger people contribute for longer periods, ensuring that pension fund assets are robust enough for investments.

“With younger people now comprising much less, the pressure is now on those aged 40 years and above to sustain Nigeria’s pension fund industry.”

The Upshots: The 8.5million mark contributors is indeed a welcome development. However, this only represents 12% of the population of employed people in Nigeria. According to the National Bureau of Statistics (NBS) unemployment data for the third quarter of 2018, the total number of Nigerians employed in both full and part-time stood at 69.6million. This implies that a whopping 61 million employed Nigerians are not captured under the contributory pension scheme. In other words, 89 percent of employed Nigerians are not within the Nigerian pension scheme.

Similarly, the low rate of under 30 contributors is not also good for the country. If the trend of under 30 contributors is not reversed, it means in future, Pension scheme in Nigeria is laced with a high level of growth uncertainties.

Related

Tags: National Pension Commission (PenCom)On the MoneyPensionRSA

Comments 1

  1. Brian says:
    May 15, 2019 at 3:50 pm

    I am under 30 and if pensioning wasn’t statutory I wouldn’t even bother about them.

    This is because, in my opinion, there’s a lack of transparency and accountability in that sector, ESPECIALLY IN NIGERIA.

    Case in point, most, if not all, pensions were wiped out after the 2008 crises. It isn’t encouraging.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Mega Millions
Hot forex
Cornerstone
Polaris Bank
Access Bank
Bankers Committee
First bank


FCMB
Ikeja Electrics




    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Hamiza Raman, founder of Coco bean bakery takes cake-making to the next level
    • Africa No Filter launches the Tony Elumelu Storytellers Fund to empower emerging African creative talent
    • 9 tips to up your Forex trading game

    Follow us on social media:

    Recent News

    Hamiza Raman, founder of Coco bean bakery takes cake-making to the next level

    Hamiza Raman, founder of Coco bean bakery takes cake-making to the next level

    July 1, 2022
    Africa No Filter launches the Tony Elumelu Storytellers Fund to empower emerging African creative talent

    Africa No Filter launches the Tony Elumelu Storytellers Fund to empower emerging African creative talent

    July 1, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com