Pension assets hit N4.3trn

Partner, Detail Commercial Solicitors, Dolapo Kukoyi; Senior Partner, Argentil Capital Partners, Gbenga Hassan and Senior Transaction Adviser in Nigeria for Power Africa, Eric Olo at the event.   

Chuks Udo Okonta

The pension contributions stand at N4.3 trillion as at the end of April, the National Pension Commission (PenCom), has said.

Head, Research and Corporate Strategy Department PenCom, Dr Farouk Aminu, disclosed this Monday, at the ongoing 2014 Nigeria Pension and Sovereign Funds Forum, organised by United Kingdom based firm Africonnomie, in Lagos.

He noted that as at Thursday last week, there are about 6.07 million Retirement Savings Account (RSA) holders registered in the industry and that the sector has grown it assets to N4.3 trillion as at the end of April, which is closely about $27 billion.

He maintained that the average growth rate of the industry is about 25 per cent per annum for the last eight years, adding that the monthly income flow is about N40 billion, which is about $250 million.

From left:  Head, Research and Corporate Strategy Department National Pension Commission (PenCom), Dr Farouk Aminu and Head, Investment Supervision Department, Ehimeme Ohioma at the event in Lagos.

Farouk said about 63 per cent of the assets belong to the private sector, stressing that though the public sector has more subscribers, the private sector has more funds due to salary disparities.

He said the statistics available to the commission show that about 65 per cent of the registered RSAs   are under 41 years, an indication that they will still be making contributions in the next 20 years. He added that this shows that there is great prospect for the industry.

He noted that the industry has almost brought in all Federal Government workers in the scheme, adding that the focus now is on states and private sector. He added that only seven states are fully contributing as at present, while 22 have passed their bills and one is yet to do anything.