Pension Contributions Rise To N5.09trn, As Enrolment In CPS Hits 8.5 Million In Q4 2018

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LAGOS – Nigeria’s total contributory pension fund rises to N5.09 trillion in the fourth quarter of 2018, a significant increase of 13 per cent from the 4.49 trillion recorded from the previous year 2017, according to data from the Nigerian Pension Commission (PENCOM).

Similarly, the data showed that the aggregate total contributions of the private sector increased to N2.53 trillion in the same period; representing 15.5 per cent increase over the same period of the previous year’s N2.19 trillion.

The data also showed that the aggregate total contributions by the public sector increased by 11.3 percent to N2.56 trillion in Q4’ 18 from N2.30 trillion of the same period in 2017, an indication that no fewer than 8.5 million people were enrolled into the Contributory Pension Scheme since inception 15 years ago.

The data shows the private sector taking the lead on Retirement Savings Account (RSA) remittances and have remained key contributor to the Central Bank of Nigeria’s (CBN’s) financial inclusion plan meant to bring in the underprivileged or low income segment into the financial system.

A review of the report for the Q4’18 shows that the total monthly pension contributions made by contributors from both the public and private sectors was N5.09 trillion as at the end of the fourth quarter, 2018.

This shows an increase of N145.41 billion representing 2.94 per cent growth over the total contributions as at the end of the previous quarter.

During the fourth quarter of 2018, the total contributions received from the public sector amounted to N50.03 billion (34.41 percent) while the private sector contributed N5.38 billion (65.59 percent). Further review of the aggregate total contribution shows that N2.56 trillion or 50.35 percent of the contributions came from the public sector, while the private sector contributed the remaining 49.65 percent (N2.53 trillion).

Also, the private sector recorded N7.42 billion in the RSA remittance in the Q4’18, representing 65.3 percent increase from N4.49 billion recorded in the corresponding period of Q4’17.

The RSA report for the fourth quarter of 2018 indicates that the funds were remitted into 966,155 employees’ accounts, out of 2,044 organisations but the private sector still controls the larger proportion of RSA.

The PenCom exists for the effective regulation and supervision of the Nigerian pension industry to ensure that retirement benefits are paid as and when due. According to the report, PenCom received a total of 3,046 applications for the issuance of Pension Compliance Certificates, out of which 2,044 were approved and issued.

The report noted that 1,002 applications were rejected for failing to meet appropriate requirements. How we’re tackling non-remittance of pension fund – PenCom boss said.

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