The National Pension Commission has revealed that the Contributory Pension Scheme now has 10.53 million registered contributors and pension fund assets of N21.92 trillion as of October 2024.
This was revealed by PenCom’s Director General, Omolola Oloworaran, during the 2024 PenCom Media Conference held in Abuja, themed “Tech-Driven Transformation: Shaping the Pension Landscape.”
Oloworaran emphasized PenCom’s commitment to safeguarding funds, prudent management, and ensuring sustainable growth.
She acknowledged the economic hurdles faced in 2024, noting, “We are also addressing delays in retirement benefit payments. 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 institutionalise a sustainable solution, ensuring retirees receive their benefits promptly and without undue stress.”
Oloworaran also talked about how the real value of pension funds has been declining as a result of high inflation, devaluation of the Naira, and unconventional monetary measures that have reduced the purchasing power of contributions.
To address these difficulties, PenCom is conducting strategic changes. “PenCom has begun a complete review of the Investment Regulations, focussing on diversifying pension fund investments into inflation-protected instruments, alternative assets, and foreign-currency denominated investments. Our goal is to protect contributors’ savings and build resilience to future economic turbulence.”
Expanding pension coverage remains a core focus for PenCom, particularly through the Micro Pension Plan, which uses technology to reach informal sector workers.
Oloworaran explained, “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.” A significant milestone this year was the launch of the e-Application Portal for Pension Clearance Certificates (PCC) in October 2024.
Oloworaran noted the impact of this digital transformation, “This initiative replaces the manual process, enabling companies to seamlessly apply for and receive PCCs online. This year we have so far issued 38,528 PCCs, significantly enhancing ease of doing business and ensuring compliance.”
Additionally, PenCom is advancing the Pension Industry Shared Service Initiative, which aims to digitize contributions and remittances, thus resolving issues related to incomplete remittance details.
PenCom is also improving the retirement experience through new measures, including a revised programmed withdrawal template.
Oloworaran elaborated, “We have introduced a revised programmed withdrawal template, simplifying access to voluntary contributions and revising the threshold for en-bloc payments in line with the new minimum wage.These measures are designed to make retirement processes more efficient and user-centric.”
She continued by emphasising the necessity of incorporating technology into all elements of the pension sector, saying, “By integrating technology into every facet of the pension industry, we are shaping a future where the CPS becomes more accessible, reliable, and sustainable.”
“However, this shift will require your unflinching support as media practitioners. Your role in amplifying our efforts and educating stakeholders throughout Nigeria is critical. This would ensure that every Nigerian, including the most vulnerable, has a safe and dignified retirement.”
The conference highlighted PenCom’s commitment to transparency, resilience, and the implementation of new solutions to strengthen Nigeria’s pension landscape in the face of changing economic conditions.