Pension contribution hits N11trn on compliance, higher workforce participation

Cumulative contributions under the Contributory Pension Scheme (CPS) have reached an all-time high of N10.97 trillion at the end of third quarter 2024.

From the total figure, public sector contributed N5.71 trillion, while the private sector contributed N5.25 trillion.

Analyst at the Pension Fund Operators Association of Nigeria (PenOp) said, “this milestone reflects the continued growth and stability of Nigeria’s pension industry, driven by increased compliance, higher workforce participation, and sustained contributions from both the public and private sectors.”

According to them, the steady rise in pension contributions underscores the effectiveness of the CPS in ensuring long-term financial security for retirees.

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“With consistent policy implementation and enhanced investment strategies, the pension fund is not only growing in size but also strengthening its role in the Nigerian economy.”

The National Pension Commission (PenCom) said at the end of the third quarter 2024, there were 10,536,088 Registered Retirement Savings Accounts (RSAs), representing a growing adoption of the pension system.

There are also118, 339 new RSA registrations in the year-to-date period for 2024, reflecting consistent awareness and inclusion efforts.

The Commission noted that over the past five years, RSA registration increased by 13.93 percent, from 9,215,788 in fourth quarter

2020 to 10,499,358 in third quarter 2024.

“Of the registered members, 61 percent were male and 38 percent were female during this period.”

The objectives of CPS is to ensure that every person who worked in either the public Service of the Federation, Federal Capital Territory, States and Local government or the Private Sector receives his retirement benefits as and when due ; and to assist improvident individuals by ensuring that they save in order to cater for their livelihood during old age.

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The provisions of Pension Reform Act shall apply to any employment in the public service of the Federation, the public Service of the Federal Capital Territory, the Public Service of the state, the public service of the local governments and the private sector.

In the case of the Private Sector, the Scheme shall apply to employees who are in the employment of an organization in which there are three or more employees.

Notwithstanding the provision of subsection (2) of this section, employee of organization with less than three employees as well as self-employed persons shall be entitled to participate under the Micro Pension Plan (MPP) as approved by the PenCom.