The National Pensions Commission (PenCom) under the outgoing Director-General, Aisha Dahir-Umar has grown Nigeria’s pension assets to a record high of N20.23tn, which has benefited the federal government and private sector players.
Dahiru-Umar has also managed to safeguard retirees welfare as about N2.55tn has been paid to retirees, and death benefits to the deceased beneficiaries, among others.
These achievements were revealed in the handover notes of the PenCom D-G, Dahir-Umar, seen by NewsNGR.
She was appointed to head PenCom by former president Muhammadu Buhari with the mandate of changing the narrative of the pensions industry. She was serving in acting capacity in 2017.
However, the DG has changed the narrative in the sector within the last six years.
Under her watch, PenCom has grown pension funds and assets significantly from N7.51tn as of 31 December 2017, to N20.23tn as of 31 May 2024, representing a growth rate of 161.7 per cent.
Her leadership has widen the number of participatents in the Contributory Pension Scheme (CPS) as about 10.28 million Nigerians are now registered with Pension Fund Administrators (PFAs).
The funds have been utilised to improve infrastructure of the country as well as widen the Nigerian capital market.
Dahir-Umar said about her achievements, “These funds have been deployed to support the Nigerian economy through the Federal Government’s socio-economic development programs. As of 31 March 2024, investment in federal government securities amounted to N12.20tn, accounting for 61.95 per cent of the total Pension Funds Under Management.
“Pension Funds investment in FGN securities also accounted for 22.91 per cent of the FG’s domestic debt as at 31 March 2024. Furthermore, pension funds have supported infrastructure development in Nigeria through a combined investment of N737bnn in infrastructure assets.
“A total of 10.28 million employees from both the Public and Private Sectors had registered with Pension Fund Administrators as at 31 March 2024. This was an increase of 2.46 million from a total of 7.82 million registered contributors as at 31 December 2017.”
Asides from helping to fund infrastructural projects, PenCom has utilized the industry’s assets to deepen the Nigerian capital market through its investment activities.
As of March 31, 2024, pension fund investments in the Nigerian equities market amounted to N2.08tn, an achievement linked to the DG’s ingenuity.
“These investments have helped improve access to capital for private companies, as well as provide market liquidity.
“The presence of pension fund assets in the stock market has also helped cushion the losses associated with the periodic exit of foreign portfolio investors,” the handover note said.
Retirement Benefits Payment Under CPS Hits N2.55tn
In fulfilment of its mandate PenCom has made sure that about 473,970 retirees are receiving pension under the CPS as of 31 March 2024.
Currently, about 347,839 retirees who are receiving pension under the programmed withdrawal were paid the sum of N1,080.31bn (N1.08tn) as a lump sum and N15.73bn as monthly programmed withdrawals.
Also, about 124,131 retirees on annuity were paid N275.45bn as lump sum adding that “the sum of N759.16bn was paid to the insurance companies as premium for the Retiree Life Annuity with a monthly pension of N7.52bn.
Further breakdown showed that the sum of N416.24bn was paid as death benefits to the beneficiaries of 100,822 deceased contributors.
Disburses N29.12bn For Residential Mortgage
Under Umar’s leadership, PenCom introduced a scheme that allows RSA holders to invest part of their savings to fund their mortgages.
To help RSA holders secure their housing goals, PenCom has processed 2,971 applications for residential mortgages and deployed N29.12bn for its execution.
“The Commission had, as at 31 March 2024, processed and approved 2,971 applications submitted by RSA holders for deployment of a total sum of N29.12bn, being part of the RSA balances of the RSA holders, as equity contributions towards payment for a residential mortgage,” the DG stated
Dahir-Umar also introduced a Micro Pensions Plan, an initiative under the Contributory Pension Scheme, developed with the strategic objective of expanding pension coverage to the informal sector, PenCom.
Figures showed that the scheme has gained traction. At least 126,941 contributors have signed up for the scheme.
Currently, participants have contributed N791.57m worth of pension assets.