The National Pension Commission (PenCom) has reported a significant increase in pension fund assets under the Contributory Pension Scheme (CPS), which reached N21.92 trillion as of October 2024. The growth is attributed to contributions from 10.53 million registered participants, with expectations that the assets will surpass N22 trillion by year-end.
This announcement was made by PenCom’s Director-General, Omolola Oloworaran, during the 2024 PenCom Media Conference in Abuja on Thursday. Oloworaran emphasized the commission’s dedication to protecting contributors’ funds through prudent management and strategic investments.
“As of October 2024, the CPS has recorded 10.53 million contributors and accumulated pension fund assets of N21.92 trillion,” she stated. “This reflects our unwavering commitment to safeguarding funds and ensuring sustainable growth.”
Economic Challenges and Strategic Responses
Oloworaran acknowledged the economic headwinds affecting pension funds, including high inflation, naira devaluation, and the aftermath of unorthodox monetary policies, which have eroded the real value of funds and reduced contributors’ purchasing power.
In response, PenCom has reviewed its investment guidelines to focus on inflation-protected instruments, alternative assets, and foreign-currency-denominated investments. “Our goal is to protect contributors’ savings and build resilience against economic volatility,” the DG noted.
Expanding Pension Coverage
To expand pension coverage, PenCom is revamping the Micro Pension Plan and leveraging technology to attract informal sector participants. The commission aims to make pension services more accessible and inclusive across diverse economic segments.
Improvements in Retirement Benefit Payments
PenCom also addressed delays in retirement benefit payments for retirees of treasury-funded Ministries, Departments, and Agencies (MDAs). Oloworaran revealed that N44 billion has been released under the 2024 budget to settle accrued pension rights for retirees between March and September 2023.
Technological Innovations
In October, PenCom launched an e-application portal for Pension Clearance Certificates (PCCs), enabling companies to apply for and receive certificates online seamlessly. So far, 38,528 PCCs have been issued, enhancing ease of business and compliance.
The Pension Industry Shared Service Initiative is another milestone aimed at digitizing pension contributions and remittances, addressing discrepancies caused by incomplete remittance details, and streamlining Retirement Savings Account contributions. This initiative is in advanced stages of implementation.
Enhancing the Retirement Process
To improve the retirement experience, PenCom has introduced a revised programmed withdrawal template, among other reforms. These steps aim to ensure a smoother process for retirees while maintaining the safety and growth of their funds.
The commission reaffirmed its commitment to overcoming economic challenges while prioritizing the welfare of contributors and retirees, ensuring that the pension system remains resilient and forward-looking.
