The National Pension Commission (PenCom) says total pension fund assets have grown to N8.63 trillion as at December 2018.
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| PenCom Acting D-G, Aisha Dahir- Umar |
Ms Aisha Dahir-Umar, its Acting Director-General, disclosed this at
the public hearing of the House of Representatives Ad-hoc Committee in
Abuja on Thursday.
the public hearing of the House of Representatives Ad-hoc Committee in
Abuja on Thursday.
The committee is mandated to investigate activities of PenCom and alleged violation of Acts establishing it.
Dahir-Umar said the fund had an average monthly contribution of
N29.15 billion, while the total pension assets were equivalent to 7.40
per cent of the Nigerian rebased GDP.
N29.15 billion, while the total pension assets were equivalent to 7.40
per cent of the Nigerian rebased GDP.
She said that the pool of pension funds generated by the
Contributory Pension Scheme had aided the deepening of Nigeria’s
financial sector.
Contributory Pension Scheme had aided the deepening of Nigeria’s
financial sector.
The PenCom boss said that the fund had also provided a platform for
attaining strategic programmes of government in the areas of
infrastructure, housing and the development of the real sector of the
economy.
attaining strategic programmes of government in the areas of
infrastructure, housing and the development of the real sector of the
economy.
She said that the number of registered contributors grew to 8.41 million as at December 2018.
According to her, this figure represents about 12.09 per cent of
Nigeria’s working population and 4.29 per cent of total Nigeria
population.
Nigeria’s working population and 4.29 per cent of total Nigeria
population.
She said that the Contributory Pension Scheme (CPS) had simplified
the process of payment of retirement benefits through the issuance of
effective regulations and guidelines for accessing such benefits.
the process of payment of retirement benefits through the issuance of
effective regulations and guidelines for accessing such benefits.
Dahir-Umar also disclosed that 260,808 persons had retired under the
Scheme as at December 2018 and were currently receiving pensions as and
when due with an average monthly pension payment of N10.18 billion.
Scheme as at December 2018 and were currently receiving pensions as and
when due with an average monthly pension payment of N10.18 billion.
“The pension reform has gained public confidence and acceptability within the short period of its implementation.
“The private sector, which hitherto was apprehensive of the CPS as a
ploy by the public sector to raise funds to address its huge pension
liabilities, has come to accept and is religiously implementing the
reform.
ploy by the public sector to raise funds to address its huge pension
liabilities, has come to accept and is religiously implementing the
reform.
“To date, about 200,000 private sector employers of labour are
implementing the CPS and have contributed about 60 per cent of the total
pension fund assets.
implementing the CPS and have contributed about 60 per cent of the total
pension fund assets.
“The Contributory Pension Scheme has also introduced transparency and
integrity in the pension administration system in Nigeria and inception
of the reform to date, there had not been a single incidence of fraud
or mismanagement of the pension funds and assets under the Scheme.
integrity in the pension administration system in Nigeria and inception
of the reform to date, there had not been a single incidence of fraud
or mismanagement of the pension funds and assets under the Scheme.
“Attracted by the enormous benefits of the Scheme, 24 States of the
Federation and the FCT had enacted the laws on the CPS and are at
different stages of implementation, six States are at the Bill stage on
the CPS, three states have adopted the Contributory Defined Benefit
Scheme (CDBS).
Federation and the FCT had enacted the laws on the CPS and are at
different stages of implementation, six States are at the Bill stage on
the CPS, three states have adopted the Contributory Defined Benefit
Scheme (CDBS).
“And two states are currently drafting Bills to introduce CDBS, while
one state has continued with the Defined Scheme as at December, 2018,”
she said.
one state has continued with the Defined Scheme as at December, 2018,”
she said.
The PenCom boss said that Pension Transitional Arrangement
Directorate (PTAD) was established to handle issues of Federal
Government’s retirees exempted from the CPS subject to the regulation
and supervision of PenCom.
Directorate (PTAD) was established to handle issues of Federal
Government’s retirees exempted from the CPS subject to the regulation
and supervision of PenCom.
“Indeed, payment of pensions to public sector retirees by PTAD has
become more regular and efficient under the supervisory oversight of
PenCom.
become more regular and efficient under the supervisory oversight of
PenCom.
“The pension reform has also positively impacted on other sectors of
the Nigerian economy. Notably, the reform facilitated the growth of
Group Life Insurance and development of Life Annuity in the insurance
industry.
the Nigerian economy. Notably, the reform facilitated the growth of
Group Life Insurance and development of Life Annuity in the insurance
industry.
“Indeed, monthly pension payment under the Life Annuity Scheme has average of N3.15 billion as at December 2018.
“It is also noteworthy that the total premium paid to insurance
companies for the monthly Life Annuity was N304.09 billion as at
December, 2018.
companies for the monthly Life Annuity was N304.09 billion as at
December, 2018.
“This has significantly assisted the growth of the insurance industry
in Nigeria which is a special focus area under the Federal Government’s
Economic Recovery and Growth Plan (ERGP),” she said.
in Nigeria which is a special focus area under the Federal Government’s
Economic Recovery and Growth Plan (ERGP),” she said.
NAN
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