The Director-General of the National Pension Commission (PenCom), Aisha Dahir-Umar, announced that pension assets in Nigeria have reached a staggering N16.76 trillion mark in the first half of 2023.
Dahir-Umar made this statement during an interactive session on the Contributory Pension Scheme (CPS) for the organized private sector, which took place in Kano. The event was jointly organized by PenCom and the Nigeria Employers Consultative Association (NECA).
Emphasizing the significance of this milestone, Dahir-Umar, who was represented by the Commissioner of Administration at PenCom, D Faruk Aminu, explained that this figure represented the total funds derived from pension contributions in the country under the CPS, as of the end of the third quarter of 2023.
A Booming Financial Sector
Dahir-Umar highlighted that Nigeria’s pension industry stands as one of the fastest-growing financial sectors in the country. By the end of the third quarter of 2023, the number of Retirement Savings Accounts (RSAs) under the CPS reached an impressive 10 million, with a pension asset under management amounting to N16.76 trillion.
She further stated, “The commission has continued to take giant strides towards ensuring the smooth implementation of the CPS through the revision of existing regulations and guidelines and the development of new ones.”
Encouraging Employers’ Compliance
The director-general urged employers to facilitate the transfer of their workers’ contributions from the Nigerian Social Insurance Trust Fund (NSITF) to their retirement savings accounts. This is in line with the commission’s responsibility of overseeing compliance following the enactment of the Pension Reform Act (PRA) 2014.
Explaining this further, Dahir-Umar stated, “The commission is saddled with the responsibility of supervising the transfer of the NSITF contributions of employees into their respective RSAs under the CPS.”
Additionally, she assured the private sector that the commission would continue to engage in robust social dialogue with NECA to prioritize the interests of all stakeholders under the CPS. Furthermore, she expressed the commission’s commitment to supporting NECA in spearheading initiatives that will ensure the successful implementation of the CPS in Nigeria.
Meanwhile, Adewale Smatt-Oyerinde, the Director-General of NECA, commended the efforts made by the pension regulator in implementing reforms aimed at improving its services. Smatt-Oyerinde, however, highlighted the need for ongoing deliberations to foster further enhancements and developments within the pension sector.
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