PenCom targets N22trn pension fund assets by end of December 2024

National Pension Commission (PenCom) said the pension fund assets under the Contributory Pension Scheme (CPS) would surpass ₦22 trillion by the end of this year.

The Commission also disclosed that the CPS had recorded 10.53 million registered contributors with a total sum of N21.92 trillion in assets funds as of the October 2024 ending.

The Director General of the PenCom, Ms Omolola Oloworaran, who highlighted these impressive figures at the 2024 PenCom Media Conference in Abuja with the theme; “Tech-Driven Transformation: Shaping the Pension Landscape”, said the Commission was committed to the safety of funds, prudent management, and sustainable growth in the industry.

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She noted that the sector had, however, been adversely stressed by the economic challenges of 2024 and preceding years, including high inflation, and Naira devaluation, as well as the impact of unorthodox monetary policies, which continued to erode the real value of pension funds and weakened contributors’ purchasing power.

Oloworaran said conscious efforts were being made to resolve the teething issue over delays in retirement benefit payments to retirees in government treasury-funded Ministries, Departments, and Agencies (MDAs).

She said: “We are also addressing delays in retirement benefit payments. Recently, ₦44 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.

“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.”

The PenCom boss said; “Again, expanding pension coverage remains a top priority for the Commission. Our revamped Micro Pension Plan leverages technology to incentivize informal sector participation, making it easier for everyday Nigerians to save for retirement. This initiative aligns with our vision of inclusive growth and financial security for all.

“This year, we achieved a major milestone with the launch of the e-Application Portal for Pension Clearance Certificates (PCC) in October 2024. This initiative replaces the manual process, enabling companies to seamlessly apply for and receive PCCs online. This year we have so far issued 38,528 PCCs, significantly enhancing ease of doing business and ensuring compliance”.

According to her, the Pension Industry Shared Service Initiative (PISSI) was in advanced stages of implementation in order to digitilize pension contributions and remittances, ensure seamless processing of Retirement Savings Account contributions and resolve discrepancies caused by incomplete remittance details within the system.

She also stated that efforts to make good contributors’ experiences had seen the Commission introduce a revised programmed withdrawal template, simplifying access to voluntary contributions and revising the threshold for en-bloc payments in line with the new minimum wage.

She said these measures were designed to make retirement processes more efficient and user-centric, and noted that by integrating technology into every facet of the pension industry, the Commission was shaping a future where the CPS would become more accessible, reliable, and sustainable.

Oloworaran stated: “However, this transformation requires your unwavering support as media practitioners. Your role in amplifying our efforts and enlightening stakeholders across Nigeria is crucial. This will ensure that every Nigerian, including the most vulnerable, has access to a secure and dignified retirement”.

While reaffirming the Commission’s dedication to fostering financial stability and ensuring the sustainability of Nigeria’s pension system through strategic reforms,
Oloworaran listed the launch of an e-application portal for Pension Clearance Certificates in October as part of measures to strengthen the processes going forward.

She said the platform allowed companies to seamlessly apply for and receive certificates online, adding that over 38,528 PCCs had been issued do far, a development that has continued to enhance the ease of doing business and ensures compliance.

Besides the PISS Initiative, she said to improve the retirement process, PenCom had introduced a revised programmed withdrawal template that simplifies access to voluntary contributions and adjusted the threshold for en-bloc payments in line with the new minimum wage.

She said with emphasis on integrating technology into every aspect of the pension industry in 2025, the Commission was focused on enhancing accessibility, reliability, and sustainability within the system.

The PenCom Chief Executive, who stressed the importance of stakeholders collaboration in achieving Commission’s goals, urged the media not to relent in supporting its efforts through enhanced public awareness about the CPS.

While acknowledging the robust partnership that has existed between the Commission and the media over the years, she lauded role of journalists in enlightening Nigerians about PenCom’s activities that continue to drive growth and development of the CPS and the pension industry.