Pension fund assets climb to N21.9trn with 10.5m contributors

BY MOTOLANI OSENI

The nation’s pension fund assets have grown to N21.9 trillion as of October 2024, with 10.5 million workers from the public and private sectors enrolled in the Contributory Pension Scheme (CPS) since its inception in 2004.

This marks a significant rise from N21.37 trillion in September 2024, reflecting an increase of over N550 billion within one month. In August 2024, the assets stood at N21.13 trillion. According to The Daily Times investigation, the consistent growth in pension funds is attributed primarily to investment income, despite delays in monthly contributions by some state governments.

New pension contributions, interest from fixed-income securities, and net returns on equities and mutual fund investments have also driven this increase.

Speaking at the 2024 Annual National Pension Commission (PenCom) Seminar in Ikeja, Lagos, the Director-General of PenCom, Ms Omolola Oloworaran, highlighted the progress achieved. “Today, we have over 10.5 million contributors and oversee pension assets in excess of N21.9 trillion as of October. This progress demonstrates the strength of our contributory pension system, but challenges remain, including inflation, which erodes the purchasing power of pensioners. We are actively seeking innovative solutions to address this,” she said.

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Ms Oloworaran acknowledged delays in the payment of accrued pension rights but noted that N44 billion had been allocated under the 2024 budget to address outstanding payments for retirees from March to September 2023. She assured that PenCom is working with the Federal Government to establish a sustainable framework to ensure retirees receive benefits promptly.

Since assuming office, the Director-General has prioritised strengthening compliance, diversifying pension assets for better returns, improving service delivery, and expanding coverage, particularly for the informal sector. She emphasised the importance of the micro-pension initiative, stating, “This initiative ensures no one is left behind, regardless of income. Technology plays a critical role, enabling mobile enrolment, real-time account management, and efficient benefits administration. We aim to scale the micro-pension plan using technology.”

A major milestone achieved this year was the launch of the e-Application Portal for Pension Clearance Certificates (PCC) in October. This platform replaces the manual application process, allowing companies to apply for and receive PCCs online. Over 38,000 PCCs have been issued since its launch, significantly enhancing compliance and ease of doing business.

Additionally, the Pension Industry Shared Service Initiative is advancing, aiming to digitise contributions and remittances, resolve discrepancies, and ensure seamless processing.

At the seminar, Mr Oguche Aguda, Executive Secretary/CEO of the Pension Fund Operators Association of Nigeria (PenOp), commended the efforts of pension fund operators in growing the assets