Legacy Pension raises revenue to N2.1bn as operating environment gets tougher

Legacy Pension Limited has posted 15.6 percent increase in gross operating revenue from N1.89 billion in 2014 to N2.19 billion in 2015, while growing profit before tax by 3 percent from N902.5 million to N929.08 million.

The unit price of the company’s Retirement Savings Account (RSA) also increased from N2.43 in 2014 to N2.69, as of the end of 2015, while Retiree Fund rose in unit price by 12.68 percent in 2015, as against 11.40 percent in 2014.

Legacy Pensions managing director, Misbahu Yola, who announced the figures while presenting the company’s 2015 annual audited account in Abuja, also noted that at N10.735 billion, RSA fund recorded surplus income for 2015, as against N7.783 billion in 2014, representing 38 percent more than the 34 percent in the previous year.

The Retiree Fund surplus income moved up 32 percent from N1.206 billion in 2014 to N1.592 billion in 2015.

“Appreciable surpluses were also returned in other Defined benefits funds,” Yola told the shareholders, speaking at the company’s eight annual general meeting, which held in Abuja.

According to Yola, the company paid a total of N25.45 billion as various benefits to over 10,636 retirees within the last eight years.

Also at the event, company’s shareholders gave approval to the N480 million dividends proposed by the management of the company for 2015.

As detailed in the company’s financial statement, the N480 million indicates a dividend payout of 60 kobo per share.

Speaking on the Nigerian pension industry, Yola raised concerns that compliance on enrolment by employers remained a challenge to the scheme even though the National Pension Commission had stepped up enforcement efforts. This is further compounded by the current fiscal challenges.

“Increased unemployment rate has stunted growth of enrolments into the Contributory Scheme. Funding the RSA has become a major issue. It is not unconnected to the dwindling revenue in both the public and private sectors resulting in the low level of pension contributions,” according to Yola.

“In addition, while the Pension Reform Act of 2014 increased the minimum contribution by employers to 18 percent cumulative contributions, this has not been implemented by many employers.

The chief executive was however optimistic that with the signing of the 2016 budget and new fiscal measures put in place in the public sector, contributions funding challenge could ease.

Chairman of the company, Lamis Dikko, said the pension industry had become even more competitive as Pension Fund Administrators continue to deploy various strategies to satisfy and win potential customers.

Speaking on the outlook, he hoped that the impending commencement of the Transfer Window, which will allow contributors to move their accounts between PFAs, would help redefine the industry.

In order to take advantage of the Transfer Window, Dikko said the company made significant investments in upgrading its IT infrastructure as well as increasing its service centres.

 

Onyinye Nwachukwu