In the first half of 2024, employers across Nigeria’s public and private sectors contributed a total of N692 billion to their employees’ retirement savings accounts. The National Pension Commission’s report shows that pension contributions rose from N314.17 billion in Q1 to N377.83 billion in Q2.
The public sector led with contributions totaling N380.28 billion, while the private sector contributed N311.72 billion. However, contributions decreased by 7.29% year-over-year from N746.45 billion in the same period of 2023, while cumulative contributions since inception reached N10.63 trillion.
The Nigeria Labour Force Survey revealed that 27% of the country’s workforce lacked formal education in 2023, impacting their job prospects and skills development.
It also highlighted that only 26.3% of Nigerian employees benefit from pension or health insurance schemes. There was little change in states’ implementation of the Contributory Pension Scheme, with only 25 states enacting laws on the scheme. In contrast, six states, including Kano and Jigawa, opted for the Contributory Defined Benefit Scheme, although Kano has yet to transfer its pension assets.
Private sector contributions have been increasing, indicating improved compliance and awareness of pension obligations. Younger Nigerians are increasingly registering for retirement savings accounts, with over 83% of new contributors in Q2 under the age of 40, highlighting the scheme’s sustainability. The pension fund industry’s portfolio reached N21.13 trillion at the end of August, continuing to grow, with total RSA registrations since inception now at 10,457,073.
(PUNCH)