PenCom Targets Over N22trn Pension Assets by Year-End
…Unveils Reforms to Protect Contributors’ Savings
By Patience Ikpeme
The National Pension Commission (PenCom) has disclosed that the total pension fund assets under the Contributory Pension Scheme (CPS) have reached N21.92 trillion as of October 2024.
This achievement, attributed to contributions from 10.53 million registered participants, is expected to surpass N22 trillion by the end of the year.
The disclosure was made by PenCom’s Director General, Ms. Omolola Oloworaran, during the 2024 PenCom Media Conference held in Abuja on Thursday. She highlighted the Commission’s commitment to safeguarding contributor savings through prudent management and sustainable growth practices.
“These numbers reflect our unwavering commitment to fund safety, prudent management, and sustainable growth,” Ms. Oloworaran said.
Despite these gains, Ms. Oloworaran acknowledged the challenging economic landscape that has affected the real value of pension funds. Factors such as persistent inflation, naira devaluation, and the lingering effects of unorthodox monetary policies have eroded contributors’ purchasing power.
“The economic realities of 2024 and the preceding years have presented unique challenges. High inflation, devaluation of the naira, and the lingering effects of unorthodox monetary policies have eroded the real value of pension funds, thus impacting the purchasing power of contributors,” she noted.
In response to these economic pressures, PenCom has initiated a comprehensive review of its investment regulations. The reforms aim to enhance the resilience of pension funds by prioritizing investments in inflation-protected instruments, alternative assets, and foreign currency-denominated investments.
“Our goal is to safeguard contributor savings and ensure resilience against future economic volatility,” Ms. Oloworaran stated.
Expanding pension coverage also remains a top priority. The Commission plans to leverage technology to boost participation in its advanced Micro Pension Plan, particularly targeting informal sector workers.
“This aligns with our vision of inclusive growth and financial stability for all. We aim to make it easier for everyday Nigerians to save for retirement,” she added.
Another critical area of focus for PenCom is the resolution of delays in retirement benefit payments to federal government retirees. Ms. Oloworaran acknowledged that retirees from treasury-funded ministries, departments, and agencies (MDAs) had faced delays since March 2023.
However, progress has been made in recent weeks, with the federal government disbursing N44 billion under the 2024 budget appropriation to settle accrued pension rights.
“Moving forward, we have also put in place initiatives that we are collaborating with the federal government to implement. We want to institutionalize a sustainable solution, ensuring retirees get their benefits as at when due,” she said.
PenCom is currently seeking approvals for a plan designed to prevent future delays, ensuring that retirees can access their benefits promptly.
“So we want to ensure that this sort of delay never happens again. Once you retire, you get your benefits as at when due,” Ms. Oloworaran assured.
As PenCom advances its strategic reforms, it reaffirms its dedication to fostering financial stability and ensuring the sustainability of Nigeria’s pension system. The Commission’s proactive measures and commitment to inclusivity aim to address current challenges while preparing for a resilient future.
