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Business News of Monday, 13 June 2022


Contributory pension gains N640bn in four months, hits N14tn

Pension Commission Pension Commission

Total assets under the Contributory Pension Scheme rose by N640bn in four months to N14.06tn in April, according to figures from the National Pension Commission released on Friday.

This was contained in the National Pension Commission’s latest report titled, ‘Unaudited report on pension funds industry portfolio for the period ended 30 April 2022; Approved Existing Schemes, Closed Pension Fund Administrators and RSA funds (Including unremitted contributions @CBN & legacy funds).’

The funds, which ended December 31, 2021, at N13.42tn, rose to N13.61tn and N13.76tn as of the end of January and February 2022 respectively.

It rose to N13.88tn by the end of March, according to the data.

The data showed that N8.56tn of the total funds was invested in Federal Government securities, comprising bonds and treasury bills.

Other investment portfolios where the funds were invested included: domestic and foreign ordinary shares; corporate debt securities comprising corporate bonds; corporate infrastructure bonds; corporate green bonds, and supranational bonds.

PenCom also disclosed that the total number of workers with Retirement Savings Accounts rose slightly to 9.648 million by the end of April, from 9.529 million at the end of December 2021.

The Chief Executive Officer, Pension Fund Operators Association of Nigeria, Mr Oguche Agudah, said, “It is pertinent to note that the Contributory Pension Scheme in its current state has in no small way fostered a savings culture in Nigeria. Prior to the enactment of the Act, Nigeria did not have large pools of domestic savings.

“Many Nigerians do not have any other form of savings, except through this contributory pension scheme. What we should be doing as a nation is to encourage more of these savings rather than looking to dismantle the system.

“This is probably the only form of savings most Nigerian workers are able to put aside for their retirement years.”

The Director, Centre for Pension Rights Advocacy, Ivor Takor, said the scheme was fully funded through monthly contributions, which were put into Retirement Savings Accounts owned by employees.