PenCom Eyes N22trn Pension Fund Assets By December 2024 Ending
BY COBHAM NSA – Banking on its robust engagement plans and mobilisation of stakeholders, the National Pension Commission (PenCom) says the pension fund assets under the Contributory Pension Scheme (CPS) will surpass ₦22 trillion by the end of this year.
This is as the Commission also disclosed that the CPS has recorded 10.53 million registered contributors with a total sum of N21.92 trillion in assets funds as at October 2024 ending.
The Director General of the PenCom, Ms Omolola Oloworaran, who highlighted these impressive figures at the 2024 PenCom Media Conference in Abuja with the theme; “Tech-Driven Transformation: Shaping the Pension Landscape”, said the Commission is committed to the safety of funds, prudent management, and sustainable growth in the industry.
However, she noted that the sector has been adversely stressed by the economic challenges of 2024 and preceding years, including high inflation, and Naira devaluation, as well as the impact of unorthodox monetary policies, which continued to erode the real value of pension funds and weakened contributors’ purchasing power.
Also addressing concerns over delays in retirement benefit payments to retirees in government treasury-funded Ministries, Departments, and Agencies (MDAs), Ms Oloworaran said conscious efforts are being made to resolve the teething issue, saying; “We are also addressing delays in retirement benefit payments. Recently, ₦44 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.”
Further explaining the measures being taken by the Commission to ensure the industry’s steady growth going forward, the PenCom boss said; “Again, expanding pension coverage remains a top priority for the Commission. Our revamped Micro Pension Plan leverages technology to incentivize 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”.
According to her, the Pension Industry Shared Service Initiative (PISSI) is in advanced stages of implementation in order to digitilize pension contributions and remittances, ensure seamless processing of Retirement Savings Account contributions and resolve discrepancies caused by incomplete remittance details within the system.
She also stated that efforts to make good contributors’ experiences have seen the Commission introducing a revised programmed withdrawal template, simplifying access to voluntary contributions and revising the threshold for en-bloc payments in line with the new minimum wage.
She said these measures are designed to make retirement processes more efficient and user-centric, and noted that by integrating technology into every facet of the pension industry, the Commission is shaping a future where the CPS becomes more accessible, reliable, and sustainable.
For Oloworaran, “However, this transformation requires your unwavering support as media practitioners. Your role in amplifying our efforts and enlightening stakeholders across Nigeria is crucial. This will ensure that every Nigerian, including the most vulnerable, has access to a secure and dignified retirement”.
While reaffirming the Commission’s dedication to fostering financial stability and ensuring the sustainability of Nigeria’s pension system through strategic reforms,
Oloworaran listed the launch of an e-application portal for Pension Clearance Certificates in October as part of measures to strengthen the processes going forward.
She said the platform allows companies to seamlessly apply for and receive certificates online, adding that over 38,528 PCCs have been issued do far, a development that has continued to enhance the ease of doing business and ensures compliance.
Besides the PISS Initiative, she said to improve the retirement process, PenCom has introduced a revised programmed withdrawal template that simplifies access to voluntary contributions and adjusts the threshold for en-bloc payments in line with the new minimum wage.
She said with emphasis on integrating technology into every aspect of the pension industry in 2025, the Commission is focused on enhancing accessibility, reliability, and sustainability within the system.
The PenCom Chief Executive, who stressed the importance of stakeholders collaboration in achieving Commission’s goals, urged the media not to relent in supporting its efforts through enhanced public awareness about the CPS.
While acknowledging the robust partnership that has existed between the Commission and the media over the years, she lauded role of journalists in enlightening Nigerians about PenCom’s activities that continue to drive growth and development of the CPS and the pension industry.
