Private sector leads pension scheme with N2.7trn contributions

Acting DG PenCom, Chinelo Anohu-Amazu

Chuks Udo Okonta

Contributions from the private sector have continued to expand pension assets, as over N2.70 trillion (63 per cent) has so far been remitted, leaving the public sector with N1.59 trillion (37 per cent).   

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

Head, Research and Corporate Strategy Department PenCom, Dr Farouk Aminu, told Inspen that there are about 6.07 million Retirement Savings Account (RSA) holders registered in the industry with a monthly income flow of about N40 billion ($250 million).

He maintained that the average growth rate of the industry is about 25 per cent per annum for the last eight years and that about 63 per cent of the assets belong to the private sector. He added that though the public sector has more subscribers, the private sector has more funds due to salary disparities.

Chairman PenOp, Misbahu Yola

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 captured all Federal Government workers in the scheme, stressing that the focus now is on states and private sector. He said only seven states are fully contributing as at present, while 22 have passed their bills and one is yet to do anything.