Nigeria’s total pension fund assets reached N21.92 trillion in October 2024, underscoring the robustness of the country’s contributory pension scheme (CPS).
However, economic challenges such as high inflation and currency devaluation continue to erode the real value of pensions, the National Pension Commission (PenCom) revealed during its annual media conference on Thursday.
Addressing participants in Abuja, the Acting Director-General of PenCom, Omolola Oloworaran, emphasised the commission’s commitment to leveraging technology and policy reforms to safeguard contributors’ savings.
“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,” she said, noting that with the wave of growth, the amount would soon hit N22 trillion mark.
PenCom acknowledged that high inflation and the lingering effects of unorthodox monetary policies have significantly impacted contributors’ purchasing power.
To mitigate these challenges, the commission is undertaking a comprehensive review of its investment regulations.
“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,” she said.
The commission also said it is focusing on expanding pension coverage through its revamped micro pension plan, which aims to integrate informal sector workers using technology.
Ms Oloworaran said that PenCom is actively addressing the issue of delayed retirement benefit payments for retirees from federal government treasury-funded Ministries, Departments, and Agencies (MDAs).
She highlighted that N44 billion had been released under the 2024 budget appropriations to settle accrued pension rights for retirees covering the period from March to September 2023.
She noted that PenCom is collaborating with the federal government to establish a sustainable framework to ensure retirees receive their benefits promptly and without unnecessary difficulties.
She said the commission’s goal is to institutionalise a sustainable solution to ensure timely payments, relieving retirees of undue stress.
Ms Oloworaran disclosed that the commission announced the successful implementation of its application portal for pension clearance certificates and has issued 38,528 certificates since its October launch.
This initiative replaces the manual process, enhancing compliance and ease of doing business. (Premium Times)
