Pension assets projected to reach N22 trillion this year

The National Pension Commission (PenCom) said pension assets will surpass N22 trillion by the end of the year.The commission’s Director-General, Omolola Oloworaran, revealed this in a paper delivered at a conference at the weekend in Abuja with the theme, ‘Tech-Driven Transformation: Shaping the Pension Landscape’.

Also, the total pension fund assets under the Contributory Pension Scheme have risen to N21.92 trillion as of October 2024, with contributions from 10.53 million registered participants.

According to her, the commission is committed to ensuring contributors’ funds’ safety through prudent management and sustainable growth strategies. Oloworaran stated the economic challenges impacting the pension fund, including high inflation, naira devaluation, and the lingering effects of unorthodox monetary policies, which have eroded the real value of pension funds and reduced contributors’ purchasing power.

To address the challenges, she explained that the commission has undertaken a review of its investment regulations, focusing on diversifying investments into inflation-protected instruments, alternative assets, and foreign-currency-denominated investments.

In addition to ensuring fund safety, the commission is prioritising the expansion of pension coverage. Oloworaran explained that PenCom plans to revamp the Micro Pension Plan and leverage technology to encourage participation from the informal sector.

This effort is aimed at enabling more Nigerians to save for retirement while promoting inclusive growth and financial security.The DG noted: “The economic realities of 2024 and preceding years present unique challenges. High inflation, the devaluation of the naira, and the lingering effects of unorthodox monetary policies have eroded the real value of pension funds, impacting contributors’ purchasing power.

“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.”She also addressed delays in the payment of retirement benefits to retirees of Federal Government treasury-funded Ministries, Departments, and Agencies.

According to her, N44 billion has been released under the 2024 budget appropriations to settle accrued pension rights for retirees from March to September 2023.

She noted that the commission is working closely with the Federal Government to institutionalise a sustainable solution that ensures retirees receive their benefits promptly.

“We are also addressing delays in retirement benefit payments to retirees of Federal Government treasury-funded MDAs. Recently N44 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.”