N31.48tn pension assets growth driven by renewed public confidence says PenCom

Omolola Oloworaran, the Director-General of the National Pension Commission (PenCom), announced a substantial 51 percent surge in Nigeria's pension assets over the last two years. Speaking at a 'Meet the Press' briefing hosted by the Presidential Communications Team at the Presidential Villa in Abuja on Tuesday, Oloworaran revealed that the total assets under management have climbed from N20.7 trillion to N31.48 trillion. She credited this remarkable expansion primarily to a revitalized public trust in the nation's contributory pension system.

This increment signifies an additional N10.7 trillion in retirement savings amassed during the two-year span. Oloworaran emphasized the critical role of trust, stating, “Every successful pension system on Earth is built on a simple foundation: confidence. Confidence that contributions are safe, confidence that institutions work, confidence that after decades of honest labour, retirement will bring security, not uncertainty.” She further elaborated on the turnaround, noting, “Two years ago, that confidence needed restoring. Today, the verdict is in. Pension assets have grown from N20.7tn to N31.48tn as of this month. That is a 51 per cent increase, representing N10.7tn in new retirement wealth. Let me say plainly what those numbers mean: confidence is back, and the system is growing.”

Beyond enhanced investment returns, the PenCom DG highlighted that the growth was also propelled by a significant surge in active participation within the Contributory Pension Scheme (CPS), witnessing the addition of 938,229 new contributors over the past two years.

Addressing the positive effects of these reforms on retirees, Oloworaran stated that PenCom had made improving pension disbursements a top priority. She reported that the total monthly pension payments had risen by 22 percent, moving from N12.2 billion to N14.9 billion. Furthermore, she disclosed that the Federal Government had sanctioned a N32,000 monthly consequential pension adjustment for qualifying retirees from treasury-funded Ministries, Departments, and Agencies (MDAs) who exited service on or before July 29, 2024, aligning with the new national minimum wage. Over 195,000 pensioners have already received this adjustment, she confirmed.

The Contributory Pension Scheme (CPS) in Nigeria, originally established under the Pension Reform Act 2004 and later reinforced by the Pension Reform Act 2014, sees PenCom as its primary regulator, overseeing Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs). This comprehensive scheme extends its coverage to Federal Government employees, military personnel, and private sector workers in organizations employing three or more individuals. Since its inception in 2004, when the industry’s assets stood at approximately N2 trillion, the scheme has demonstrated consistent growth, culminating in the current N31.48 trillion, marking a significant expansion over two decades.