…Pension assets to gross N22 trillion before end of 2024
The National Pension Commission (Pencom) has said the pension assets currently at N21.92 trillion as of October 2024, contributed by 10.53 million registered contributors will hit N22 trillion before the end of 2024.
This is coming from the Commission amid the ongoing comprehensive review of its investment regulations with a view to diversifying pension fund investments into inflation-protected instruments, alternative assets, and foreign-currency-denominated investments.
Pencom Director General, Ms Omolola Oloworaran gave the updates on Thursday in Abuja at the 2024 PenCom Media Conference theme “Tech-driven transformation: shaping the pension landscape”.
She said a comprehensive review of the commission’s investment outlays had become vital and necessary given distortions in the economy.
She said: “The economic realities of 2024 and preceding years present unique challenges. High inflation, the devaluation of the naira, and the lingering effects of unorthodox monetary policies have eroded the real value of pension funds, impacting contributors’ purchasing power”.
“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”, Oloworaran assured.
Giving an update on the pension assets, she said as of October 2024, the CPS recorded 10.53 million registered contributors and boasts pension fund assets of N21.92 trillion, adding that, before the end of the year, the pension assets will hit N22 trillion.
She said the numbers- pension assets reflect Pencom’s unwavering commitment to fund safety, prudent management, and sustainable growth.
Oloworaran said under her watch, the commission had begun the overhaul of the micro pension scheme designed for the non-formal sector. Amongst changes to be effected, would be to adopt a new brand name.
“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. We will pick a name that resonates with the targeted contributors “.
Asked about the number of states that have so far enrolled into CPS, she said 8 states out of 36 enrolled on the CPS scheme while a number of states were at various stages in the process of enrollment.
” We are also addressing delays in retirement benefit payments to retirees of Federal Government treasury-funded MDAs. Recently, N44 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 institutionalize a sustainable solution, ensuring retirees receive their benefits promptly and without undue stress”, she declared.
“Today’s event holds special significance as it marks my first official engagement with you, the media, since assuming the office as Director General of PenCom. It is a privilege to address such an esteemed audience, and I am excited to build on the robust partnership that has long existed between PenCom and the media.
“Together, we will redefine the pension landscape and position it as a beacon of innovation and trust”, she added.
