Nigeria’s pension industry stakeholders have stressed the need for a renewed national focus on financial literacy as a major catalyst for deepening pension participation and unlocking the economic potential of the growing micro-pension market.
Parthian Pensions Limited, one of the newly-licensed pension fund administrators (PFAs), said an improved understanding of the contributory pension system (CPS) is crucial to bringing millions of informal sector workers into the formal savings net and boosting long-term funds available for investment in the economy.
Speaking at the industry forum that involved stakeholders in Lagos, the Head of Operations, Parthian Pensions, Adetunbi Ashaye, urged operators and regulators to intensify public education on the benefits of pension participation.
Ashaye noted that many Nigerians still misunderstand the objectives of the CPS, which replaced the previous unfunded and unsustainable defined benefit model that left thousands of retirees without savings.
“What really needs to happen is a stronger drive for financial literacy because many people in Nigeria still see pension as insignificant,” Ashaye said. The contributory pension scheme is funded, regulated and ensures that workers can live decent lives after retirement. We must continue to educate the public on this.”
He explained that increased participation in the CPS not only secures financial stability for individuals but also strengthens Nigeria’s macroeconomic base through the accumulation of long-term domestic savings.
“The impact of the scheme goes beyond individuals; it contributes to macroeconomic stability by creating a pool of investible funds that supports infrastructure and capital market development,” he said.
With total pension assets projected to reach N29 trillion by the end of 2025, Ashaye said the industry continues to show resilience despite economic headwinds.
In the first quarter of this year alone, pension fund administrators disbursed N79 billion under programme withdrawals and N54 billion through annuity payments.
He commended the PenCom for maintaining transparency and regulatory discipline through asset classification and reporting systems that have sustained public confidence in the scheme.
