Nigerian pension funds reach 14.27 billion naira as contributors nearly 10 million

By Adedapo Adesanya

The National Pensions Commission (PenCom) reports that the total number of registered contributors and the value of pension fund assets stood at N9,795,957 million and N14.27 trillion, respectively, as of June 2022.

PenCom Managing Director Ms. Aisha Dahir-Umar gave the figures at a recent workshop on the topic Increasing the participation of the informal sector in the contributory pension scheme (CPS): the case of the micro-pension scheme (MPP).

Ms. Dahir-Umar, represented by Head of Corporate Communications, Mr. Abdulqadir Dahiru, said the growing number of pension funds and contributors was responsible for the recapitalization of pension fund administrators (PFAs) by PenCom.

“The reason for the recapitalization exercise was to increase the ability of the PFAs to manage the growing number of registered contributors and the value of pension fund assets which amounted to $9,795,957 million and $14.27 trillion respectively. naira, as of June 30, 2022.

“PenCom has increased the minimum regulatory capital (shareholder funds) requirements for PFAs from N1 billion to N5 billion in 2021.

“All PFAs complied with the commission’s directive to increase their minimum capital during the fiscal year which saw a 12-month transition from April 27, 2021 to April 27, 2022,” she said. declared.

According to her, the theme of the workshop aligned with the commission’s objective to broaden the coverage of the CPS with respect to the micro-pension scheme.

The Managing Director explained that the aim was to bring Nigerians working in the informal sector and those in liberal professions into the CPS through the MPP.

Ms. Dahir-Umar noted that strategic efforts to drive the MPP remained one of the main areas of interest of the commission.

She said the MPP was designed to extend pension coverage to the informal sector, including small businesses, artists, professionals, small traders, artisans and entrepreneurs.

“The MPP was set up to tackle old-age poverty by helping workers, as mentioned above, to contribute while working and build long-term savings to fall back on when they get older,” said Ms. Dahir-Umar.

The Managing Director said that to publicize the MPP, the commission, in collaboration with the Association of Pension Fund Operators of Nigeria, was currently conducting an industry media campaign in major cities across the six geopolitical zones of the country.

She said the exercise was expected to result in increased effectiveness and efficiency as well as better service delivery in the industry.

“Let me reaffirm the commission’s commitment to raise awareness and maintain social dialogue on the functioning of the CPS with relevant stakeholders for the smooth implementation of the program in Nigeria,” she said. .