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Bimbola Oyesola
Nigeria Pension Fund assets have risen to N9.44 trillion, according to statistics from, PenCom, the sector regulator.
Acting Director General, National Pension Commission (PenCom), Mrs. Aisha Dahir-Umar, said in a presentation at the weekend that the Fund has recorded a giant strides since it commenced operation in 2004.
The PenCom boss who was represented by the Head, Internal Audit Department, Mr. Peter Ekwealor, at an event organised by the Nigeria Labour Congress (NLC) said the number of pension contributors also rose to 8.79 million in the period under review.
Giving an update on the implementation of the Contributory Pension Scheme (CPS), Dahir Umar said: “It is appropriate to provide implementation updates at all engagements with Organised Labour. The modest milestones of the CPS should instill confidence that the Pension Reform remains steadily on course despite some passing challenges. As at August, 2019, the number of pension contributors with membership of the Retirement Savings Account (RSA) Fund had grown to 8.79 million. There are high growth potential for the CPS with more registrations expected from the states as well as the private and informal sectors.
“With the launch of the Micro Pension Plan in the first quarter of 2019, it is expected that the plan will serve as a major driver of expanding coverage of the CPS in Nigeria. Furthermore, Pension Fund Assets had grown to N9.44 trillion over the same period. It should be noted that Pension Asset growth is made up of monthly pension contributions for the RSA Funds and funds injected by scheme sponsors in the case of Closed Pension Fund Administrators (CPFAs) & Approved Existing Schemes (AESs) as well as income generated from investment.”
On benefits administration, she noted that a total of 297, 019 retirees are receiving pension under the CPS as at 31 August, 2019, while about 226,350 retirees who are receiving pension under the programmed withdrawal were paid the sum of N586.25 billion as lump sum and N9.64 billion as monthly programmed withdrawals.
She added, “Whereas, about 70,669 retirees on Annuity were paid N93.79 billion as lump sum; N382.63 billion was paid to the Insurance companies as premium for the Retiree Life Annuity with a monthly pension of N3.82 billion. In addition, N183.79 billion was paid as death benefits to the beneficiaries of 58,434 deceased contributors.”
The PenCom acting chief executive said compliance by states was one of the strategic initiatives towards expanding coverage of the CPS, adding that as at August this year, 25 states of the Federation including the FCT had enacted laws on the Contributory Pension Scheme (CPS); six states were at the bill stage; while five states had embarked on pension reform other than the CPS.
Accordingly, she pointed out that the Commission had adopted different strategies in promoting CPS in States and also enhances their capacities in ensuring compliance. These strategies, according to her, include direct engagement of stakeholders at all levels, provision of technical support and the conduct of sensitisation and enlightenment workshops for state government officials, labour unions and employees, among others.
