According to a recent report by the Organization for Economic Co-operation and Development, Nigeria has the fifth greatest pension asset increase in Africa as policymakers’ reforms are beginning to bear fruit (OECD). Global pension fund assets increased by more than 10% to $38.5 trillion in 2021, according to the research.
The Nigerian pension industry’s net assets will reach N20 trillion by 2023; with an average growth rate of 18%, according to credit rating firm Agusto & Co. The constantly expanding population, increased asset allocation to equities and real estate assets, regulations, and the implementation of PSA 2014; in terms of compliance are all major contributors to the pension industry’s excellent growth.
With a penetration of 7.60 percent, the largest economy in Africa that adopted the contributory pension system in 2004 has a much lower rate than the European Union (22 percent), Europe (41 percent), and the G7 (72 percent).