Pension Scheme Milestones: Navigating Two Decades of Growth
By Patience Ikpeme
Pension Fund Administrators (PFAs) have disbursed N1.63 trillion to 442,000 retirees through programmed withdrawal and annuity components of the Contributory Pension Scheme over the past fifteen years.
Additionally, N208.86 billion has been dispersed to 475,000 Nigerians who faced job loss, constituting 25 percent of their Retirement Savings Account (RSA).
Amidst these revelations, data sourced from the Pension Operators of Nigeria (PenOP) underscores the significant strides achieved in the twenty-year journey of the Contributory Pension Scheme’s existence in the country.
Highlighting future plans, members of the Pension Fund Operators Association of Nigeria (PenOP) disclosed intentions for offshore investments in 2024 to diversify pension investment portfolios.
During a virtual press briefing, PenOP’s Chief Executive Officer, Mr. Oguche Agudah, lauded the scheme’s accomplishments. He cited a remarkable surge in RSA registrations, escalating from 2,543,178 in 2007 to 10,023,314 by July 2023.
Breaking down the lump sum payouts from programmed withdrawals, substantial amounts were disbursed to applicants over the years. Notably, N99.2 billion went to 35,419 applicants in the third quarter of 2011, while N964.2 billion was paid to 330,201 applicants by the second quarter of 2023.
Furthermore, a total of N356.32 billion has been distributed as death benefits to 91,214 beneficiaries of deceased CPS contributors.
The contributions from both the public and private sectors have seen a remarkable upsurge in the last two decades. Public sector contributions soared to N4.87 trillion in the second quarter of 2023 from N1.57 trillion in the third quarter of 2011.
Meanwhile, private sector contributions escalated to N4.5 trillion in the second quarter of 2023 from the N454.95 billion recorded in the third quarter of 2011.
