Pursuant to its statutory mandate under Section 23(f) of the PRA 2014, PENCOM, under Hajia Aisha Dahir-Umar’s leadership, has consistently developed and established structures, systems and procedures that ensured transparency, accountability and efficiency in the administration of all pension matters in Nigeria.
Since she mounted the saddle as Director General of PENCOM on October 20th, 2020, Aisha Dahir – Umarr has distinguished herself as a visionary leader, strategic thinker, prudent manager, astute administrator and silent achiever. She has consistently demonstrated resilience in the face of macro-economic headwinds and recorded remarkable growth, even in the face of the challenges posed by the COVID-19 pandemic.
Some of the giant strides under her exemplary leadership runs thus:
HER MAJOR STRIDES
There has been remarkable improvement in the management and security of pension funds, and prompt payment of pension to retired workers. The process has been democratized with emphasis on Professionalism, accountability, and probity.
Pension funds under her management has improved. The pension industry membership has grown to 8.61 million contributors as at April, 2019, with an accumulated figure of up to N9.03 trillion as at the end of the first quarter of 2019.
A total of 280,454 retirees have received pension under the CPS as at March, 2018. It is noteworthy that the federal government has been consistent in the remittance of the monthly contributions of its employees. In the same vein, it is expedient to say that in order to enhance the monthly pension benefits of retirees under the CPS, that the commission initiated the pension enhancement for retirees under the programme withdrawal arrangement. This was as a result of the high returns being generated by the Pension Fund.
Membership/contributors in the CPS has also increased the pool of pension funds for investment and economic development.
Due to the peculiarities of the informal sector, the Micro Pension Plan (MPP) has been flexible, safe, convenient and simple.
The additional savings from Micro Pension Plan aided economic development and macro-economic stability through investment in infrastructure and financial markets. It has further enhanced pension coverage, improved Gross Domestic Product, and financial security.
There was an increase in the country’s pension fund assets by over N1.5 trillion or 12.46 per cent in the previous year.
The breakdown of the value of assets showed that Pension Fund Administrators (PFAs) for March increased their corporate debt securities to N1.01 trillion as at March 2022.
While investment in federal government securities stood at N8.5 trillion. Although, the FGN Securities accounts remained the most attractive investment for pension fund managers. Investment in real estate properties by PFAs now stands at N156.39 billion, while investments in the local equities market increased to N2.2 trillion. On the flip side, the PFAs reduced their exposure to foreign equities and it now stands at N136.27 billion.
Nigeria’s Retirement Savings Accounts (RSAs) have increased to N9.56million in March 2022 compared to N9.30 million the same month last year.
The nation’s pension assets have hit N14.06 trillion at the end of April 2022.
Pension assets rose from N13.88 trillion recorded in the same period in March 2022, indicating N181.34 billion increase month-on-month, as against N113.75 billion increase in March from February performance
The pension assets grew from 12.3Trillion as at December 2020 to 13.3 Trillion as at December 2021 and grew more to N14.03 Trillion as at May 2022 ($33 billion dollars)..
Number of registered contributors grew to 9.64 million (9,648,213) in April, against 9.30 million in March and 9.27 million in February 2022.
Number of registered contributors grew to 9.64 million (9,648,213) in April, against 9.30 million in March and 9.27 million in February 2022
Real estate properties accounted for 236 billion, equal to 1.68 percent, while State Government Securities accounted for N172 billion, equal to 1.22 percent.
Payment of 2.5 per cent differential in the rate of employer’s pension contribution for FGN retirees and employees was approved by President Muhammadu Buhari. these differential resulted from the increase in the minimum pension contribution for employers from 7.5 per cent to 10 per cent, in line with Section 4(1) of the Pension Reform Act (PRA) 2004.
As of March 2022, the assets under management of the Nigerian pensions fund industry were valued at the equivalent of $33.4bn. Representing 19 per cent of the Nigerian GDP, these funds, correctly invested and deployed, present an opportunity for the country to address its $100bn annual infrastructure shortfall.
Commencement of payment of the reviewed monthly pension contribution rate by the Federal Government was a significant step in ensuring compliance with the PRA 2014.
Allocation of pension investment to fixed income instruments (issued by Nigeria’s Federal and State Governments) has averaged 67 per cent over the last 10 years, in line with government borrowing supported by monetary policy decisions in a volatile environment.
Cumulative pension contributions from inception to the end of the first quarter of 2022 amounted to N7.77 trillion, which is an increase from N7.58 trillion as at the end of Q4:2021.
Unedited report on pension funds industry portfolio for the period ended 30 April 2022; Approved Existing Schemes, Closed Pension Fund Administrators and RSA funds (Including unremitting contributions @CBN & Legacy Funds)’, showed that the total pension funds stood at N13.76tn as of the end of February
The aggregate pension contributions of the public sector increased from N3.92trillion to N4.02 trillion as at the end of Q1:2022.
Similarly, the aggregate pension contributions of the private sector increased from N3.66 trillion to N3.76 trillion as at Q1:2022.
The CPS, which by all parameter of measurement has been adjudged the best scheme for pensioners, is not without challenges and these challenges dates back to its early years.
