The Nigerian pension sector demonstrated resilience in 2024, accumulating assets worth N21.9 trillion and expanding contributors to 10.5 million despite the country’s economic challenges, including inflation and currency depreciation. Initiatives by the National Pension Commission (PenCom), such as the Contributory Pension Scheme (CPS), played a pivotal role in stabilizing the sector and proving the model’s efficacy, significantly improving retirees’ conditions. Key reforms, including the launch of the e-Application Portal for Pension Clearance Certificates (PCC) and measures to streamline benefit payments, enhanced efficiency and compliance within the system.
The sector witnessed substantial growth in remittances and pension fund assets, recording a 20.26% increase in contributions in Q2 2024 and achieving 4.17% asset growth. PenCom also advanced micro-pension initiatives, registering over 16,000 new contributors in Q2, supported by digital innovations to simplify enrollment and fund management. Challenges remain, including raising public awareness about the importance of financial planning through pensions and building trust in the system’s security.
PenCom’s focus on digitization and policy reforms, including relaxing restrictions on lump sum withdrawals and enabling investments in commercial papers, aims to enhance the retirement experience and extend coverage to informal sector workers. With these strides, the commission is committed to ensuring retirees receive timely benefits while strengthening the sector’s role as a reliable source of long-term investable funds in Nigeria’s economy.