PenCom: Pension assets hit N17trn in July despite economic challenges

The National Pension Commission (PenCom) says pension assets increased to N17.07 trillion at the end of July 2023.

Aisha Dahir-Umar, director-general of PenCom, disclosed this at a sensitisation conference for civil society organisations (CSOs) in Abuja.

Speaking at the event, Dahir-Umar said pension assets recorded a significant increase of N2.08 trillion, rising from N14.99 trillion at the end of 2022 to N17.07 trillion at the end of July.

She highlighted the robust growth of the pension industry in 2023, despite the economic challenges; adding that the contributory pension scheme (CPS) secured over 10 million retirement savings account (RSA) holders.

“The pension industry still holds vast growth potential, especially as more nano, micro, small, and medium enterprises (NMSMEs) join the CPS through the Micro Pension Plan (MPP),” Dahir-Umar said.

“The commission actively supports pension fund administrators (PFAs) in devising incentives such as health insurance for MPP participants.”

The MPP, according to the agency, is a pension plan designed for individuals in the informal sector and other underserved populations.

It aims to curb old-age poverty by enabling participants to contribute during their working years and foster long-term savings to provide financial security during retirement.

“The pension industry is a customer-centric industry, and we are committed to ensuring that RSA holders receive the highest quality of service from PFAs,” PenCom said.

“The objective is to make pension plans more inclusive, accessible, and beneficial for individuals in the informal sector and other underserved populations.

“We are committed to making the micro pension plan a success so that more Nigerians can have a secure retirement.”

The commission also provided details on how RSA holders can access up to 25 percent of their RSA balance as an equity contribution to procure, residential houses through a mortgage.

“This initiative will help RSA holders to achieve their homeownership dreams and improve their overall well-being,” PenCom said.

During the conference, participants expressed satisfaction with the performance of PenCom, commending the organisation for its exceptional supervision and regulation of the pension industry in Nigeria.