New pension scheme contributes 9.5% to GDP, says PenCom

Anohu-Amazu

By Omobola Tolu-Kusimo

　

The contribution of the new pension scheme to Nigeria’s Gross Domestic Product (GDP) grew from 1.4 per cent in 2006 to 9.5 per cent in 2013, Acting Director-General of the National Pension Commission (PenCom), Mrs Chinelo Anohu-Amazu, has said.

The new pension scheme has N4.13 trillion in assets.

Mrs Anohu-Amazu revealed this yesterday while presenting a paper with the theme: The Contributory Pension Scheme as a catalyst for economic development in Nigeria at the Eighth Annual Business Law Conference of the Nigerian Bar Association (NBA).

According to her, the GDP grows at an average of 30 per cent yearly.

She said the most significant proportion, about 63 per cent of the assets, equivalent to N2.64 trillion was invested in Federal Government Securities.

She said assets were invested in authorised markets with portfolio limits.

She added that it has generated appreciable pool of long term investible funds for the first time in Nigeria.

On the benefits of the administration under the CPS, the PenCom chief, however, noted that pensioners receiving their benefits under the CPS as at March, this year were 95, 840.

Of this figure, 86, 628 pensioners opted for programme withdrawal, while 9,212 opted for life annuity, she said.

She further highlighted the outlook and the next steps of the commission.

She said the enactment of the new bill, the Pension Reform Act 2014, that will facilitate compliance and enforcement, enhance supervisory powers of the Commission, expand coverage of the contributory pension scheme and create enabling environment for investment in the real sector, will be the focus of PenCom.

She said other areas that the Commission will focus on is repositioning of the pension industry for the next decade, building capacity in the industry and engaging the services of skilled and experienced financial advisers for deal structuring.

She said: "The Commission would sustain support for initiatives to provide affordable housing and infrastructure development. We will deploy strategies for increased compliance by employers, ensure participation by the informal sector and adoption of the Contributory Pension Scheme (CPS) by states and local governments.

"We will also collaborate with other regulators and stakeholders in the financial services sector to create enabling environment for investment in infrastructure and housing.

"There will be continual review of extant laws and regulations and reorganisation of the administration of public sector pensions and repositioning of the Pension Transition Arrangement Department (PTAD)."




Source The Nation