Nigeria’s pension assets hit N21trn 

Nigeria’s  contributory pension assets hit N21.14  trillion at the end of August 2024 as against  N20.79 trillion recorded in July 2024, showing N345.65 billion increase.

According to latest data from the National Pension Commission (PenCom), the number of registered contributors, otherwise called Retirement Savings Account (RSA) holders, also grew to 10, 457,073 at the end of August 2024, from 10,419,520 recorded in July.

In second quarter (Q2) 2024, total contributions moved into individual RSA holders’ accounts stood at N 377 billion,  with the  public sector contributing N217 billion. The private sector contributed N160.83 billion, according to PenCom data compiled by analysts at the Pension Fund Operators Association of Nigeria(PenOp).

In the second quarter (Q2) of 2023, public sector contributions were higher at N286.69 billion, while the private sector contributed N234.47 billion, showcasing strong performance from both sectors. By contrast, in Q2 2022, the public sector contributed N136 billion, and the private sector, N101.96 billion, showing a steady but more modest increase in contributions.

Looking back at Q2 2021, both sectors contributed almost equally, with N97.17 billion from the public sector and N97.91 billion from the private sector.

This marked a year where the gap between sectors was minimal, signalling balanced pension remittances. In Q2 2020, the public sector contributed N118.50 billion, while the private sector’s contribution was lower at N70.69 billion, PenOp said.

Overall, the public sector has generally led in pension contributions over the years, but the private sector has been catching up steadily, especially since Q2 2021, where it nearly matched and sometimes exceeded public sector contributions. This growth suggests improved compliance, increasing employer participation, and growing awareness of pension obligations in both sectors. However, if more states were to join the Contributory Pension Scheme (CPS), these numbers could improve even further. Increased participation from states would lead to greater compliance, a broader base of contributors, and ultimately, a more robust pension system that could drive higher remittances and financial security for retirees across the country, analysts say.