- The National Pension Commission says pension fund assets under the Contributory Pension Scheme increased to N21.92 trillion in October
- PenCom says it is targeting over N22 trillion in asset growth by year-end
- The commission assured that it is making efforts to address delays in payment of retirement benefits
Pension fund assets under the Contributory Pension Scheme (CPS) increased to N21.92 trillion as of October 2024 from N20.79 trillion recorded in July, according to the National Pension Commission (PenCom).
PenCom said it is targeting pension funds assets to surpass N22 trillion by the end of the year.
It also said the CPS had recorded 10.53 million registered contributors as of October 2024.
The Director-General of PenCom, Ms Omolola Oloworaran, disclosed this at the 2024 PenCom Media Conference in Abuja, which was held on Thursday, December 12, and was themed ‘Tech-Driven Transformation: Shaping the Pension Landscape.’
Oloworaran reiterated the commission’s commitment to fund safety, prudent management, and sustainable growth, adding that challenges such as high inflation, naira devaluation, and unorthodox monetary policies impacted the real value of pension funds and contributors’ purchasing power.
She said, “As of October 2024, the CPS has recorded 10.53 million registered contributors and boasts pension fund assets of N21.92 trillion. These numbers reflect our unwavering commitment to fund safety, prudent management, and sustainable growth.
“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.”
PenCom is addressing delays in payment of retirement benefits – Oloworaran
Oloworaran also said efforts are being made to address concerns over delays in retirement benefit payments to retirees in government treasury-funded ministries, departments, and agencies (MDAs).
Oloworaran said, “We are also addressing delays in retirement benefit payments. 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 institutionalise a sustainable solution, ensuring retirees receive their benefits promptly and without undue stress.
“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.”
PenCom focused on the expansion of pension coverage
The PenCom DG also disclosed that the commission is focused on expanding pension coverage, which informed its innovative strategies and reforms.
She said, “Again, expanding pension coverage remains a top priority for the commission. Our revamped Micro Pension Plan leverages technology to incentivise informal sector participation, making it easier for everyday Nigerians to save for retirement. This initiative aligns with our vision of inclusive growth and financial security for all.
“This year, we achieved a major milestone with the launch of the e-application portal for Pension Clearance Certificates (PCC) in October 2024. This initiative replaces the manual process, enabling companies to seamlessly apply for and receive PCCs online.
“This year we have so far issued 38,528 PCCs, significantly enhancing ease of doing business and ensuring compliance.”
Good news for low-income pensioners as PenCom enacts new withdrawal policy
Meanwhile, TheRadar reported that in a policy change aimed at addressing the financial challenges faced by low-income pensioners, the National Pension Commission (PENCOM) has announced that retirees with insufficient savings can now withdraw the entirety of their retirement savings, or continue receiving their monthly pension payments.
This decision follows the enactment of Nigeria’s new National Minimum Wage, which has seen a significant rise in the minimum wage to N70,000.
