Nigeria’s pension assets have reached an impressive N17.29 trillion by the end of August 2023, reflecting a substantial 15.34 percent growth compared to N14.99 trillion in December 2022, according to data from the National Pension Commission.
During this period, the distribution of pension assets is as follows:
1. Federal Government Securities: 66.3 percent, equivalent to N11.47 trillion.
2. Corporate Debt Securities: 10.74 percent.
3. Money Market Instruments: 7.51 percent.
4. Equities Market: 9.32 percent, amounting to N1.611 trillion.
5. Money Market Instruments: 7.51 percent, equivalent to N1.298 trillion.
Aisha Dahir-Umar, the head of the National Pension Commission, emphasized the Commission’s commitment to the smooth implementation of the Contributory Pension Scheme (CPS). The Commission has been revising existing regulations and guidelines while developing new ones to enhance the pension system.
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She noted that the Enhanced Contributors Registration System (ECRS) has been deployed for the pension industry. In addition, the Data Recapture Exercise (DRE) has been introduced, requiring all Retirement Savings Account (RSA) holders who joined the CPS before July 1, 2019, to update their information with their respective Pension Fund Administrators (PFAs).
To facilitate RSA transfers, the Commission deployed the RSA Transfer System (RTS) in 2020. The RTS is a computer-based application that streamlines the process of transferring RSAs from one PFA to another, allowing RSA holders more flexibility.
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The Commission has also issued guidelines for various key activities, including:
– Equity Contribution For Residential Mortgage by RSA Holders:
This aims to provide access to equity finance for RSA holders under the CPS, improving their standard of living and helping them own residential homes.
– Incentives for Employees to Open RSAs:
To boost CPS enrollment, employees who haven’t opened RSAs are being offered incentives.
– Co-Investment of Pension Funds:
This fosters increased investment in the Private Equity (PE) asset class, providing PFAs with flexibility in project and company choices for pension fund investments.
– Investment in Foreign Currency Denominated Assets:
Draft guidelines are in development to hedge against inflation and naira devaluation, protecting the value of pension assets.
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