The Director-Normal of the Nationwide Pension Fee (PenCom), Omolola Oloworaran, has revealed that pension fund belongings in Nigeria reached N21.92 trillion in October 2024, whilst challenges persist within the business.
Oloworaran made this disclosure on Thursday, noting that the challenges are being addressed by means of a number of initiatives, together with a complete assessment of the Funding Laws, amongst others.
She careworn that the group is addressing the financial realities and challenges which have eroded the true worth of pension funds in Nigeria.
She shared developments throughout the Fee in the course of the 2024 PenCom Media Convention, attended by Nairametrics.
The occasion was themed “Tech-Pushed Transformation: Shaping the Pension Panorama.”
Nigeria’s Financial Realities and PenCom Initiatives
The DG revealed that as of October 2024, the Contributory Pension Scheme (CPS) had recorded 10.53 million registered contributors and boasted pension fund belongings of N21.92 trillion, including that the belongings are anticipated to achieve N22 trillion by the tip of the 12 months.
- She defined that these numbers mirror the Fee’s dedication to fund security, prudent administration, and sustainable development.
“Nevertheless, the financial realities of 2024 and previous years current distinctive challenges,” she added.
- She identified that top inflation, the devaluation of the Naira, and the lingering results of unorthodox financial insurance policies “have eroded the true worth of pension funds, impacting contributors’ buying energy.”
“To handle these challenges, PenCom has initiated a complete assessment of the Funding Laws, specializing in diversifying pension fund investments into inflation-protected devices, different belongings, and foreign-currency-denominated investments,” she stated.
Extra Insights
She identified that increasing pension protection to achieve the unserved stays a prime precedence for the Fee.
- She disclosed that the Fee’s revamped micro-pension plan leverages know-how to incentivize casual sector participation, making it simpler for on a regular basis Nigerians to save lots of for retirement.
- She assured that the Fee is addressing delays in retirement profit funds to retirees of Federal Authorities treasury-funded MDAs.
“Just lately, N44 billion was launched beneath the 2024 funds appropriations to settle accrued pension rights for retirees from March to September 2023.
“Shifting ahead, we’re working with the Federal Authorities to institutionalize a sustainable answer, making certain retirees obtain their advantages promptly and with out undue stress,” she stated.
- On the know-how revolution, the DG drew attendees’ consideration to the launch of the Fee’s e-Utility Portal for Pension Clearance Certificates (PCC), which was held in October 2024.
She stated the initiative replaces the handbook course of, enabling corporations to seamlessly apply for and obtain PCCs on-line, including that this 12 months, 38,528 PCCs have been issued thus far.
What You Ought to Know
Nairametrics experiences that in Might 2024, the Nigerian pension business maintained its uptrend, reaching an all-time excessive of N20.23 trillion.
- This marks a N4.12 trillion enhance over the previous 12 months.
- This development was highlighted in an evaluation by Nairalytics, the analysis division of Nairametrics.
Information from the Nationwide Pension Fee (PenCom) signifies that the whole pension belongings within the business surged to N20.23 trillion in Might 2024, up from N16.11 trillion in Might 2023, representing a 25.6% year-on-year enhance.
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