The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, has revealed that pension fund assets in Nigeria reached N21.92 trillion in October 2024, even as challenges persist in the industry.
Oloworaran made this disclosure on Thursday, noting that the challenges are being addressed through several initiatives, including a comprehensive review of the Investment Regulations, among others.
She stressed that the organization is addressing the economic realities and challenges that have eroded the real value of pension funds in Nigeria.
She shared developments within the Commission during the 2024 PenCom Media Conference, attended by Nairametrics.
The event was themed “Tech-Driven Transformation: Shaping the Pension Landscape.”
Nigeria’s Economic Realities and PenCom Initiatives
The DG revealed that as of October 2024, the Contributory Pension Scheme (CPS) had recorded 10.53 million registered contributors and boasted pension fund assets of N21.92 trillion, adding that the assets are expected to reach N22 trillion by the end of the year.
- She explained that these numbers reflect the Commission’s commitment to fund safety, prudent management, and sustainable growth.
“However, the economic realities of 2024 and preceding years present unique challenges,” she added.
- She pointed out that 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,” she said.
More Insights
She pointed out that expanding pension coverage to reach the unserved remains a top priority for the Commission.
- She disclosed that the Commission’s revamped micro-pension plan leverages technology to incentivize informal sector participation, making it easier for everyday Nigerians to save for retirement.
- She assured that the Commission is addressing delays in retirement benefit payments to retirees of Federal Government treasury-funded MDAs.
“Recently, N44 billion 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 institutionalize a sustainable solution, ensuring retirees receive their benefits promptly and without undue stress,” she said.
- On the technology revolution, the DG drew attendees’ attention to the launch of the Commission’s e-Application Portal for Pension Clearance Certificates (PCC), which was held in October 2024.
She said the initiative replaces the manual process, enabling companies to seamlessly apply for and receive PCCs online, adding that this year, 38,528 PCCs have been issued so far.
What You Should Know
Nairametrics reports that in May 2024, the Nigerian pension industry maintained its uptrend, reaching an all-time high of N20.23 trillion.
- This marks a N4.12 trillion increase over the past year.
- This growth was highlighted in an analysis by Nairalytics, the research division of Nairametrics.
Data from the National Pension Commission (PenCom) indicates that the total pension assets in the industry surged to N20.23 trillion in May 2024, up from N16.11 trillion in May 2023, representing a 25.6% year-on-year increase.
