Pension contribution in Nigeria hits N7.78trn

The National Pension Commission (PenCom) has revealed that the net pension asset value of the Contributory Pension fund has increased from N7.52 trillion to N7.779 trillion as at February 28, 2018.

The Director General of PenCom, Mrs. Aisha Dahir-Umar, at a workshop organised for journalists  by the Commission at Le Meridien Ibom Hotel and Resort, Uyo, with the theme “Contributory Pension Sheme: Achievements and Challenges”, said that the  figure represented an increase of N270 billion up from N7.52 trillion recorded as at December 31, 2017.

The Director General, represented by Mohammed Sanni Mohammed, the Commission Secretary and Legal Adviser, attributed the increase to new contributions received, interest or coupon from fixed income securities as well as net realised or unrealised gains on equities and mutual fund investments.

Dahir-Umar also said the commission had recorded a growth in the number of pension contributors.

According to her, the number grew by 390,000 from the 7.50 million as March 31, 2017 to 7.89 million as at Dec. 31, 2017 and then to 7.90 million as at February 28,2018.

In order to enhance the monthly pension of retirees in the CPS, Dahir-Umar said that the commission initiated the Pension Enhancement Programme.

She explained, “It was discovered that the returns being generated by the PFAs on the balances of RSAs of majority of retirees could be used to enhance their monthly pension.

“Consequently, the commission sought for approval of the Secretary to the Government of the Federation to implement the pension enhancement, which resulted in increased monthly pensions for most retirees receiving pension under the programmed withdrawal arrangement.”

The PenCom had not relented in its efforts at settling the outstanding pension liabilities of the federal government

She also said that the commissioned had determined the total pension liability owed to the contributory pension retirees due to both 15 per cent and 33 per cent pension increase of 2007 and 2014 respectively.

“In addition, the outstanding accrued rights of the federal government employees who retired in 2017 as well as the amount due to those retiring in 2018 have been submitted to the federal government for appropriation in the 2018 budget.

“Based on the positive disposition of the federal government towards settling outstanding pension liabilities, as evidenced by the release of N54 billion in April 2017, it is expected that these liabilities will soon be cleared,” she declared.