Nigeria’s Contributory Pension Scheme (CPS) assets has risen by 6.3 from N18.6 trillion in December 2023 to N19.5 trillion at the end of January 2024.
Data released by the National Pension Commission (PenCom) shows that, registration of contributors has also risen to 10.23 million in January, as against 10.19 in December 2023.
In terms of portfolio allocation, Federal government securities sustained its lead with N12.14 trillion, with FGN bonds contributing N11.6 trillion.
Domestic ordinary attracted N1.93 trillion, whereas money market instrument attracted N1.71 trillion.
Oguche Agudah, chief executive officer, Pension Fund Operators Association of Nigeria (PenOp) explaining the cause of significant growth in pension funds in the last quarter of 2023 said, “In Q3:2023, monthly pension contributions for RSA Funds I, II, III, V, and VI Active reached a noteworthy total of N564.12 billion, marking a substantial increase of N69.91 billion (14.15 percent) compared to the N494.21 billion recorded in Q2:2023.”
Oguche said this surge in these assets during the period can be attributed to various factors, primarily the notable increase in the salaries of many workers.
Recognizing the challenges posed by the rising cost of living, employers have responded by enhancing the compensation packages for their employees, and this salary increment has naturally led to higher monthly pension contributions, he said.
“Additionally, some states began clearing their outstanding pension arrears during this period. The resolution of these arrears likely prompted increased participation in pension schemes and contributed to the overall growth in contributions observed in Q3.”
According to him, the salary increments, and the proactive measures taken by certain states to address pension arrears has played a role in fostering the notable growth in pension contributions during the third quarter.
