Nigeria’s Retirement Savings Hit Record High

Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us

Nigeria’s pension fund assets have reached a record high of N22.51 trillion as of December 2024, up from N22.25 trillion in November 2024, according to the National Pension Commission (PenCom). This growth is attributed to the increasing adoption of the Contributory Pension Scheme (CPS), which has been in place since 2004.

For further information, read more details here

Cumulative contributions under the CPS have reached N10.97 trillion as of the third quarter of 2024, with the public sector contributing N5.71 trillion and the private sector contributing N5.25 trillion. The micro pension plan, launched in 2019 to provide retirement savings for informal sector workers, has registered 164,031 participants, although only 12,241 have funded Retirement Savings Accounts (RSAs).

Despite this, the number of funded RSA registrations has increased by 5,971 from 2020 to the third quarter of 2024, with a total of N967.19 million saved in the RSAs of micro pension participants. The total number of registered RSAs has also grown to 10,536,088, representing a 13.93% increase over the past five years.

“We are optimistic about the future of the pension sector in Nigeria,” said Aisha Dahir-Umar, Director-General of PenCom. “We will continue to work towards increasing pension coverage and ensuring that all Nigerians have access to a safe and secure retirement.

The commission has also announced plans to launch a new pension scheme for the informal sector, which is expected to increase pension coverage and provide more Nigerians with access to retirement savings.

For further information, read more details here

With the pension sector continuing to grow and develop, Nigeria is taking a significant step towards providing a secure and prosperous future for its citizens.

PenCom has highlighted the consistent awareness and inclusion efforts that have contributed to this growth, with 118,339 new RSA registrations in the year-to-date period for 2024. The commission’s report also shows that 61% of registered members are male, while 38% are female.

As Olumide Oyetan, chief executive of Stanbic Pension Managers Limited, notes, “The coverage gap remains significant, with a large portion of Nigeria’s workforce, particularly in the informal sector, still operating outside the pension system.” However, with the continued growth of the pension fund assets and the increasing adoption of the CPS, Nigeria’s pension sector is poised for further development

Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post.