PenCom: Pension fund assets increased to N20.79trn in July

The National Pension Commission (PenCom) says total pension fund assets increased to N20.79 trillion in July.

PenCom said states remitted N236.7 billion to the pension fund custodians (PFCs) as contributions from January 2020 to the second quarter (Q2) of 2024.

Omolola Oloworaran, acting director-general of PenCom, spoke on pension contributions at the commission’s the third quarter (Q3) 2024 consultative forum for states and the federal capital territory (FCT) in Lagos.

The forum was attended by heads of pension bureau, boards and commissions steering the implementation of the contributory pension scheme (CPS).

Also at the forum were heads of service and senior government officials of some states that had commenced implementation of the scheme.

Speaking at the event, Oloworaran said based on records, only 25 states including the FCT had enacted pension laws on the CPS, while six are preparing to pass the law.

She explained that six states had already adopted the contributory defined benefits scheme (CDBS).

According to Oloworaran, only eight of the 25 states are fully implementing the CPS and have enacted laws.

The acting director-general further said the pension fund assets under the scheme had risen, with total assets under management soaring to N20.79 trillion as at July 2024.

“It will interest state governments to note that one of the significant benefits of adopting the CPS is access to accumulated pension funds for infrastructural development through issuance of state bonds.

“Indeed, five states, including Lagos, Niger, Osun, Ekiti and Delta, have successfully issued state bonds that were subscribed by pension funds, for example Lekki-Ikoyi Bridge in Lagos.”

Oloworaran said the commission is committed to ensuring that all retirees from public and private sectors received their retirement benefits without delay.

She, however, said PenCom would engage the states in a sustained manner and work towards expanding the coverage of the CPS at the subnational level.

“We will also intensify efforts with relevant state government agencies to resolve the backlog in accrued rights payments to CPS retirees,” the PenCom boss said.

“In addition, we will ensure that pensioners under the CPS and other pension arrangements benefit from pension increments as provided for in the Nigeria constitution.”

Oloworaran also said from December 2025, PenCom would introduce a recognition and reward system to encourage and reward pension reforms by states.

She urged the participants to make constructive contributions to the deliberations at the forum to assist state governments’ roles in pension reform and implementation processes.