Pension assets hit N21.92trn in Oct 2024 amid challenges — Pencom DG
By Seun Ibiyemi
The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, has announced that pension fund assets in Nigeria reached N21.92 trillion as of October 2024, although challenges continue to affect the industry.
Oloworaran made this announcement on Thursday, highlighting that these challenges are being addressed through various initiatives, including a comprehensive review of the Investment Regulations. She emphasized that the Commission is actively tackling the economic realities and obstacles that have diminished the real value of pension funds in Nigeria.
She shared key developments at the Commission during the 2024 PenCom Media Conference, which was themed “Tech-Driven Transformation: Shaping the Pension Landscape.”
According to Oloworaran, by October 2024, the Contributory Pension Scheme (CPS) had recorded 10.53 million registered contributors, with pension fund assets standing at N21.92 trillion. She further stated that assets are projected to reach N22 trillion by the close of the year. These figures, she explained, reflect PenCom’s ongoing commitment to ensuring fund safety, prudent management, and sustainable growth.
“However, the economic challenges of 2024, as well as those from previous years, present unique hurdles,” she acknowledged.
She pointed out that high inflation, the devaluation of the Naira, and the prolonged effects of unconventional monetary policies have significantly eroded the real value of pension funds, which in turn has affected contributors’ purchasing power.
“To counter these challenges, PenCom has undertaken a thorough review of the Investment Regulations, with a focus on diversifying pension fund investments into inflation-protected instruments, alternative assets, and foreign-currency-denominated investments,” Oloworaran revealed.
The Director-General also underscored that expanding pension coverage to include the underserved remains a top priority for the Commission. She disclosed that the Commission’s revamped micro-pension plan, which utilises technology, aims to encourage greater participation from the informal sector and make it easier for Nigerians to save for retirement.
In response to concerns over delays in the payment of retirement benefits, Oloworaran assured that the Commission is addressing the issue for retirees of Federal Government treasury-funded Ministries, Departments, and Agencies (MDAs).
She noted that recently, N44 billion was released under the 2024 budget appropriations to settle accrued pension rights for retirees from March to September 2023. “Looking ahead, we are working with the Federal Government to institutionalise a sustainable solution, ensuring that retirees receive their benefits promptly and without undue stress,” she added.
In her address on technological advancements, Oloworaran highlighted the launch of the Commission’s e-Application Portal for Pension Clearance Certificates (PCC) in October 2024. This new digital system replaces the previous manual process, allowing companies to apply for and receive PCCs online. She reported that, so far in 2024, a total of 38,528 PCCs have been issued.
