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ABUJA – Despite economic volatility in Nigeria, pension assets have continued to see a steady upsurge in recent times, peaking at N31.48 trillion, a 51 percent increase within the last two years. The implication is that N10.7 trillion was added into the pool of funds to shore up the retirement funding, Daily Independent confirmed.
Director General of the National Pension Commission, Omolola Oloworaran, gave these figures at the Meet the Press chat, usually organised by the Presidential Communications Team at the Presidential Villa, Abuja. She said the latest figures clearly reflected confidence in the pension management system.
Buttressing her claims, she said, “Every successful pension system on earth is built on a simple foundation, confidence, confidence that contributions are safe, confidence that institutions work, confidence that after decades of honest labour, retirement will bring security, not uncertainty.
Two years ago, that confidence needed restoring. Today, the verdict is in. “Pension assets have grown from N20.7 trillion to N31.48 trillion as at this month.
That is a 51 percent increase, representing N10.7 trillion in new retirement wealth. “Let me say plainly what those numbers mean: confidence is back, and the system is growing.”
Oloworaran said the goal of the administration was to translate asset growth into money in pensioners’ pockets. She went on to explain that aggregate monthly pension payouts had risen by 22 percent from N12.2 billion to N14.9 billion every single month.
She also disclosed that following the enactment of the new national minimum wage, the administration had approved a N32,000 monthly consequential adjustment for every eligible retiree of treasury-funded Ministries, Departments and Agencies who retired on or before July 29, 2024.
She equally maintained that more than 195,000 pensioners, had benefitted directly from the adjustment, adding that Nigeria’s Contributory Pension Scheme was established under the Pension Reform Act of 2004 and reformed again in 2014, with PenCom as the regulatory body overseeing pension fund administrators and custodians.
Meanwhile, PenCom said it is addressing agitation by personnel of the Nigeria Police Force.
Recall that retired police personnel had protested their continued participation in the Contributory Pension Scheme (CPS) when it was not favourable to them.
Oloworaran said the commission is working to secure enhanced retirement benefits for the officers, rather than support their exit from the scheme.
She noted that the police had not withdrawn from the CPS, contrary to widespread public perception, stressing that their grievance centred on the disparity between their retirement benefits and those enjoyed by members of the Armed Forces.
She said PenCom had opened discussions with relevant government authorities to address the concerns of police personnel through improved pension benefits.
“The police have not exited the Contributory Pension Scheme. They want to exit because they believe their benefits are too small.
They compare their benefits with those of the military and are not happy with that. They want to be at par with the military,” she said.
According to her, PenCom fully understands the concerns raised by police officers and supports efforts to improve their welfare.
“We share their frustration because we stand for anything that puts more money in the pockets of ordinary Nigerians.
What they want is improved benefits. If we achieve that, it doesn’t matter whether it is done within the scheme or outside it. We are engaging the appropriate authorities on how police pensions can be reviewed and improved.”
She acknowledged that opinions within the Force differed over the proposed withdrawal from the CPS, noting that while some groups continued to advocate an exit, many officers were primarily interested in obtaining better retirement packages.
“There are different camps within the police. Some are not fully aligned with what we are doing, but many simply want a better standard of living after retirement.
That is exactly what PenCom is fighting for.” The PenCom boss also dismissed claims that pensioners routinely face delays in accessing their retirement benefits, insisting that retirees with complete documentation receive their entitlements without unnecessary hurdles.
She said the commission actively monitors complaints from contributors and pensioners, including those posted on social media, and immediately investigates genuine cases.
“If anyone has genuine issues, they should bring them to us. Every day, our team monitors social media for complaints. Once we identify one, we reach out immediately to establish the facts and resolve the matter.”
To further strengthen service delivery, Oloworaran disclosed that PenCom was deploying a Customer Relationship Management (CRM) platform to create a unified system for receiving, tracking and resolving complaints from pension contributors and retirees across the country.
Beyond the police pension issue, the director-general said the commission expects pension enrolment among workers in the informal sector to rise significantly within the next two years as reforms aimed at expanding pension coverage begin to take effect.
She said PenCom was laying the foundation for that expansion by digitising registration, simplifying enrolment procedures and licensing Accredited Pension Agents to take pension services to markets, rural communities and other underserved locations.
“We are putting the building blocks in place. We have digitised onboarding, simplified the registration process and licensed three accredited pension agents, while four more are undergoing approval.
“This year is about building the foundation, and within the next two years we expect to begin seeing significant results.”
She admitted that the commission had initially anticipated faster enrolment under the Micro Pension Plan but maintained that sustainable growth required a strong institutional framework.
Oloworaran also assured contributors that pension assets remained secure despite increased investments in the capital market and infrastructure projects.
She explained that PenCom’s investment regulations prescribe strict conditions for all investments, limiting pension funds to financially sound institutions and assets that satisfy rigorous standards on credit quality, corporate governance and profitability. “You cannot simply invest pension funds in any company.
There are clear investment guidelines.
Companies must demonstrate profitability, maintain strong credit ratings and meet other regulatory requirements before pension funds can be invested.”
She added that the commission regularly conducts compliance examinations and spot checks on Pension Fund Administrators (PFAs), while each PFA is supervised by a board investment and risk management committee to ensure adherence to PenCom’s regulatory framework.
The director-general also defended PenCom’s recent policy permitting PFAs to invest in the parent companies of their pension custodians. She explained that the restriction had originally been introduced to prevent conflicts of interest, but a comprehensive regulatory review concluded that the associated risks were minimal.
