Pension Assets to Hit N140tn

Ebere Nwoji

Nigeria's total pension asset has the potential to rise to N140 trillion between the year 2022 and 2025.

Total pension asset stood at N3.8 trillion($24b) as at October 2013, representing only 0.003 per cent of the world's total pension asset of $70 trillion.

Finance expert and Managing Director Lancelot Ventures Limited, Mr. Adebayo  Adeleke stated this at the annual insurance and pension awards organised by Inspenonline , an insurance and pension online medium in Lagos .
He said Nigeria's pension sub sector has great potential to grow up to the above figure in the next seven to ten years.

Adeleke who is also Secretary General Independent Shareholders Association of Nigeria said pension asset will in the nearest future surpass market capital of Nigeria Stock Exchange with great margin.

He attributed the potential growth to the effectiveness of the current pension regime in the country, saying one of the good features of the contributory pension regime is that workers are now being fully responsible for their retirement savings.

The contributory pension scheme regime enthroned by the former president Olusegun Obasanjo's administration is a funded scheme that gives room for employees and employers to contribute to a common pool of retirement savings account opened by the employee.

Both employer and employee contribute a total of 18 per cent of employee's monthly salary to the pool managed by a Pension Fund Administrator (PFA) of his or her choice.

The fund is invested on behalf of the employee by pension fund custodian who also adds interest to the accumulated funds monthly .

At the annual pension and insurance award, immediate past president Chartered Insurance Institute of Nigeria (CIIN) Fatai Lawal emerged the Inspenonline Insurance Man of the year for 2014 .

Fatai who is the Managing Director Sterling Assurance Nigeria
Limited bagged the award among many other nominees after due selection by voting conducted by the organisers.

Speaking at the event,Chief Executive Officer Inspenonline Media, Chuks Udo Okonta, said Lawal was picked from the votes casted by the public and other considerations made by the award's panel of assessors.

He noted that the winner raised the bar at the institute and the industry by opting to serve a tenure which was eventful and impactful. He added that amongst the legacies left by the winner was the printing and donation of Insurance books to secondary and tertiary institutions aimed at deepening insurance awareness.

Okonta noted that the award, which started two years ago with the recognition of two distinguished individuals and and underwriting company, has now come to stay.

"This year, we decided to raise the bar by setting high standards to judge the operations of companies and impacts made by individuals in moving insurance and pension business forward.

"To achieve this, we gave the public the opportunity to select those to be celebrated by calling for votes. Having harmonised the votes which came from different parts of the country, we benchmarked the scores with the set standard to arrive at the winners we are celebrating today," he said.

Other winners at the event are AIICO Insurance Plc, which clinched Insurance company of the year; award, FUG Pensions Limited which went home with the Pension Fund Administrator of the Year; YOA Insurance Brokers Limited and Glanvill Enthoven Insurance Brokers Limited, which won Insurance Broker of the year.

Professional Excellence Award went to Professor Joe Irukwu;, while Best Professional Group went to the Chartered Insurance Institute of Nigeria and Association of Registered Insurance Agents of Nigeria; Corporate Brand went to Mansard Insurance Plc and Leadway Assurance Limited while Corporate Social Responsibility award was won by Sovereign Trust Insurance Plc.

The organisers also recognised organisations that distinguished themselves, with Excellence Award. organisations in this category include the National Pension Commission, Lagos State Pension Commission, Goldlink Insurance Plc and Pension Transition.

Source: ThisDay