By Olaitan Ibrahim
The National Pension Commission (PenCom) in its latest data, reveals significant growth in both public and private sector pension contributions and disbursements of death benefits.
According to the commission’s report, on ‘20 years of pension reform, gains, challenges, prospects,’ the public sector contributions as of the second quarter of 2024 have surged to N5.72 trillion, while private sector contributions stand at N5.23 trillion.
Comparing this with previous years, the public sector contributions in 2022 Q3 were recorded at N4.27 trillion, a notable increase from N2.79 trillion in 2019 and N1.76 trillion in 2015.
The private sector also showed remarkable growth, with contributions rising from N3.96 trillion in 2022 Q3, N2.81 trillion in 2019, and N1.53 trillion in 2015.
PenCom disclosed that a total of N451.2 billion was paid to 104,259 employee beneficiaries in death benefits as of Q2 2024, compared to N310.43 billion disbursed to 83,533 beneficiaries in Q3 2022.
This marks a significant increase from the N186.21 billion paid to 59,057 employees in 2019 and N85.01 billion to 29,804 employees in 2015.
The commission also highlighted the payment of retirement benefits over the years. In Q2 2024, a total of N1.1 trillion was paid to 129,435 applicants, up from N789.14 billion in 2022, N485.16 billion in 2019, and N133.28 billion in 2015.
According to the commission, this reflects the growing engagement with the Retirement Savings Account (RSA) and a rise in the number of retirees benefiting from the scheme. “Over the last 15 years, PenCom reported that N1.12 trillion has been paid in lump sums to 357,310 retirees through programmed withdrawal and annuity,”
Oguche Agudah CEO, Pension Fund Operators Association of Nigeria (PenOp) during his presentation, laid out the commission’s priorities for the future, aiming to increase public awareness and expand the reach of the pension scheme.
He added that among the commission’s goals are greater media engagement and enlightenment campaigns, which are expected to drive more individuals to access their RSA accounts, focus on higher investments in infrastructure, particularly in the mortgage sector, and will push for seamless, faster service delivery through technology adoption.
Agudah, stated that PenCom is also revising its investment guidelines to deliver higher returns on investments. “Another key area of focus will be on expanding pension coverage in the informal sector through the MicroPension plan, which aims to bring more Nigerians into the formal pension system,” he said.
He explained that these initiatives underscore PenCom’s commitment to strengthening Nigeria’s pension industry, providing greater financial security for retirees, and improving the overall efficiency of its operations through technology and strategic investments.