Pension Assets Hit N16.76tn, Recorded N1.7tn Growth in Q1 2023, Says PenCom

*Unveils 5-year strategic plan to improve customer satisfaction

Ebere Nwoji and Ugo Aliogo

The National Pension Commission (PenCom) has disclosed that pension assets have hit an all-time of N16.76 trillion after achieving N1.77 trillion growth in the first half of this year, compared with the N14.99 trillion it was in December 2022.

The Director General PenCom, Aisha Dahir- Urmar, who disclosed this at the 2023 journalists’ conference organised by the commission in Lagos, said PenCom’s proactive regulatory approach made the significant growth possible having strengthened its oversight and governance of pension funds, promoting transparency, accountability and safeguarding the interests of pension contributors.

“Consequently, pension assets have risen by N1.77 trillion in the first half of 2023, from N14.99 trillion in December 2022 to N16.76 trillion at the end of June 2023. “Membership also increased by 146,920 new contributors, from 9.86 members as of the end of 2022, to over 10 million members as of June 2023,” she said.

The PenCom Director General who was represented at the event by the Head, Corporate Communications Department, Abdulqadir Dahiru, said the prevailing Contributory Pension Scheme (CPS) has ensured that public and private sector workers build retirement savings throughout their working lives and fostered financial security during their golden years.
She said the conference was a testament to PenCom’s commitment to enhancing the knowledge and understanding of the CPS and its impact in the lives of contributors and retirees.

She added that it was an occasion to interact with the media and discuss developments shaping Nigeria’s pension landscape.
According to her, the  theme of  this year’s workshop, “Transforming Service Delivery in the Pension Industry: Strategies for Improving Efficiency and Customer Satisfaction,” was both timely and crucial.

She also disclosed that PenCom has introduced new strategic plan to provide Retirement Savings Account (RSA) holders with the care they rightfully deserve and enhance customer service delivery. Dahir-Umar, said the essence of the new plan was to protect the retirees, contributors rights, quality service delivery, continue safety of pension assets and consistent and effective service delivery.
“PenCom’s new strategic plan would highlight the Commission’s latest initiatives to elevate customer service and engender more confidence in the Pension Industry.”

The DG stressed further that regulatory oversight for improved service delivery in the Pension Industry would explore how regulatory measures that can effectively bolster the quality of services provided in the pension sector.
“Regulatory oversight is pivotal in maintaining transparency, fairness, and efficiency, which are the cornerstones of our pension system,” she said.
She said it reflected PenCom’s commitment to continuous service improvement in the pension industry so that contributors and retirees received the best possible experience.
“I am delighted to announce that today’s conference will feature three enlightening papers addressing essential aspects of our pension system’s service delivery,” she added.

According to her, “the creation of the Consumer Protection Department (CPD) underscores PenCom’s determination to prioritise service delivery and provide our retirement savings account holders with the care and attention they rightfully deserve.”

Umar noted that regulatory oversight was pivotal in maintaining transparency, fairness, and efficiency, which were the cornerstones of pension system.

Delivering his paper, the Chief Executive Officer (CEO) Pension Fund Operators Association of Nigeria (PenOp), Oguche Aguda, noted that Nigeria’s housing deficit grew from seven million in 1991 to 28 million in 2023, leading to overcrowded and obsolete housing infrastructure.

He said with the new mortgage policy of PenCom, RSA holders could acquire their own home with 25 percent of their pension savings.

He regretted that Nigeria had the lowest home ownership rates in the world estimated at nine per cent of the population.

He said to improve the present level of accessibility of houses there should be more publicity, improved technology in the area of websites, chatbots, software applications, more engagement with banks both commercial and mortgage banks, more engagement with developers as well as more engagement with the government.

He said there was hope that the implementation of the RSA mortgage financing by PenCom would go a long way to improve home ownership among Nigerian workers.