Nigeria’s pension assets hit N2.45 trillion

Contributions to Nigeria’s pension scheme have hit N2.45 trillion as at Dec., 2011, with a monthly contribution of N20 billion and 30 per cent annual growth rate.

Mr Muhammad Ahmad, the Director General, Pension Commission (PENCOM) said 5.01 million employees, in both the public and private sectors have registered under the scheme. Federal and state employees account for 54 per cent of the number, while the employees in the private sector make up the rest 46 per cent.

Ahmad also said that the Contributory Pension Scheme (CPS) was on course, despite the probe by the National Assembly, crediting the scheme for generating long term investible funds, which was already impacting positively on the nation’s economy.

“The CPS is on course and not in any way endangered by the ongoing probe by joint senate committee on the plight of pensioners.

“The pool of pension funds and assets generated by the CPS has strengthened the Nigeria’s financial sector. It has also provided a platform for attaining the transformation agenda of government in the provision of infrastructure, energy, employment generation and development of the real sector of the economy,’’ Ahmad said in a statement.

The director noted that the Pension Reform Act, 2004 had enhanced the administration of pension by providing effective, efficient and transparent way of administering it in the Federal Public Service and the private sector.

Ahmad said that the Federal Government had been remitting its employees monthly pension contributions into the Contributory Pension Account with the Central Bank of Nigeria (CBN).

According to him, N604.27 billion has been credited into the Account as at Dec. 2011, out of which N449.35 billion was remitted into various Retirement Savings Accounts (RSAs) of federal employees.

He stated that the federal government also paid N270.11 billion to its 48,587 retirees and deceased employees under the CPS, as at Jan. 31.

He explained that the proportion of the pension assets to Nigeria’s Gross Domestic Products (GDP) grew from 1.4 per cent in 2006 to 7 per cent in 2010.

Ahmad also stated that the CPS has simplified the process of payment of retirement benefits, through the issuance and implementation of effective regulations and guidelines.

“The regulation requires employees to start the process of accessing their benefits six months before their retirement, provides for necessary documentation, and the procedure for payment of benefits.

“This arrangement is to ensure smooth transition to retirement life and also ensure that the payment of benefits to retirees in the private sector had been regular and timely,’’ he said