Business

Pension assets rise by N1.77trn in 6 months

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2 years ago

TOTAL pension assets in Nigeria increased by N1.77 trillion in the first half of 2023, from N14.99 trillion in December 2022 to N16.76 trillion at the end of June 2023.

Membership also increased by 146,920 new contributors from 9.86 members as of the end of 2022 to over 10 million members as of June 2023.

Director-General, National Pension Commission (PenCom), Mrs Aisha Dahir-Umar, made the disclosure on Thursday in Lagos, at the 2023 Journalists’ conference organised by the commission for members of the press covering pension matters.

The theme of this year’s workshop is, ‘Transforming Service Delivery in the Pension Industry: Strategies for Improving Efficiency and Customer Satisfaction.’

Dahir-Umar, who was represented by the Head, Corporate Communication, PenCom, Mr Abdulqadir Dahiru, further stated that the Contributory Pension Scheme (CPS) has ensured that public and private sector workers can build retirement savings throughout their working lives, fostering financial security during their golden years.

She said it reflects PenCom’s commitment to continuous service improvement in the pension industry so that contributors and retirees receive the best possible experience.

Dahir-Umar said the journalists’ conference is a testament to PenCom’s commitment to enhancing the knowledge and understanding of the CPS and its impact in the lives of contributors and retirees.

“It is also an occasion to interact with the media and discuss developments shaping Nigeria’s pension landscape.

“PenCom’s proactive regulatory approach has strengthened the oversight and governance of pension funds, promoting transparency, accountability and safeguarding the interests of pension contributors,” she noted.

Also making his presentation, Oguche Agudah, the Chief Executive Officer (CEO), Pension Fund Operators Association of Nigeria (PenOp) stated that Nigeria’s housing deficit grew by 300 percent from seven million in 1991 to 28 million in 2023 leading to overcrowded and obsolete infrastructure.

The growing housing deficit, according to him, can be attributed to rapid urbanisation, growing population and lack of home ownership model.

But with PenCom’s new mortgage policy, Retirement Savings Account (RSA) holders can now acquire their own homes with 25 percent of their pension.

In 2014, the Pension Reform Act (PRA) was amended to allow contributors access 25 percent of their RSA balance as down payment for mortgage.

According to him, Nigeria has one of the lowest home ownership rates in the world, estimated at nine percent of the population, adding that there are no standard or national home ownership model in Nigeria like in Singapore, USA, among others.

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