Contributory Pension Assets Now N14.36trn

Assets under the Contributory Pension Scheme rose to N14.36tn in July 2022, from N14.27tn reported in the previous month.

This is according to the data obtained from the National Pension Commission (PenCom) on its unaudited report for the period ended July 31, 2022.

The data showed that N9.05tn of the total funds was invested in Federal Government securities, comprising bonds and treasury bills.

Other investment portfolios where the funds were invested included: domestic and foreign ordinary shares; corporate debt securities comprising corporate bonds, corporate infrastructure bonds, corporate green bonds, and supranational bonds.

According to PenCom, the total number of RSA holders stood at 9,730,778 during the period under review.

Total micro pension registration as of July was 81,674, according to the commission.

The Pension Reform Act, which led to the CPS, was inaugurated in 2004.

It provides a contributory arrangement in which the employer and employee contribute to the workers’ RSAs.

The Pension Fund Operators Association of Nigeria has said the CPS is helping Nigerian workers to save for retirement and provide funds for infrastructure development.

The operators urged workers to increase their statutory deductions, noting this would enable them to raise their aggregate savings balances over time.

In a statement, the association said, “It is also pertinent to note that the Contributory Pension Scheme in its current state has in no small way fostered a savings culture in Nigeria. Prior to the enactment of the Act, Nigeria did not have large pools of domestic savings.

“Many Nigerians do not have any other form of savings, except through this contributory pension scheme. What we should be doing as a nation is to encourage more of these savings rather than looking to dismantle the system.

“This is probably the only form of savings most Nigerian workers are able to put aside for their retirement years.”