The National Pension Commission (PenCom) has reported that total pension fund assets under the Contributory Pension Scheme (CPS) have reached N21.92 trillion as of October 2024.
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Supported by contributions from 10.53 million registered participants, this growth highlights the significant strides in the nation’s pension system. PenCom projects that these assets will exceed N22 trillion by the end of the year.
Speaking at the 2024 PenCom Media Conference in Abuja on Thursday, the Director-General, Omolola Oloworaran, emphasized the commission’s commitment to ensuring the safety and sustainability of contributors’ funds through prudent management strategies.
Oloworaran noted that while the fund has recorded impressive growth, economic challenges such as high inflation, the devaluation of the naira, and unorthodox monetary policies have eroded the real value of pension funds and reduced contributors’ purchasing power.
To address these challenges, PenCom has reviewed its investment regulations, focusing on diversifying assets into inflation-protected instruments, alternative investments, and foreign-currency-denominated holdings.
These measures aim to shield pension funds from economic volatility and preserve their value. Additionally, PenCom is working to expand pension coverage, particularly in the informal sector.
Efforts to revamp the Micro Pension Plan and leverage technology to encourage broader participation are key aspects of this strategy.
The commission has also introduced a digital platform for applying for Pension Clearance Certificates (PCCs), streamlining the process and enhancing compliance. Since its launch in October, the portal has issued 38,528 PCCs, improving efficiency and making it easier for businesses to access the certificates.
In addressing delays in retirement benefits, Oloworaran revealed that N44 billion had been released under the 2024 budget appropriations to settle accrued pension rights for retirees of Federal Government-funded Ministries, Departments, and Agencies.
This amount covers retirees from March to September 2023. Furthermore, the Pension Industry Shared Service Initiative is nearing completion.
This initiative will digitize pension contributions, address discrepancies in remittance details, and ensure seamless processing of Retirement Savings Account contributions.
PenCom is also working on improving the retirement process for contributors. The commission has introduced a revised programmed withdrawal template to enhance the experience for retirees and ensure financial security during retirement.
These efforts reflect PenCom’s proactive approach to managing economic challenges and positioning Nigeria’s pension system for sustainable growth.