PenCom Records N14.9tn Contributory Pension Fund in 2022

The National Pension Commission has revealed that N14.99 trillion was recorded as a Contributory Pension fund at the end of year 2022.

This was contained in its latest report titled– Report on pension industry portfolio for the period ended 31 December 2022.

According to PenCom, the total assets of the Contributory Pension Scheme grew by N1.56 trillion in 2022 as it recorded N13.42 trillion in 2021.

Investors King reports that the members of the contributory scheme increased by 333,002 in 2022 as the number of contributors was formerly 9,529,127 as at 2021 ending. 9,862,129 members were recorded at the end of 2022. 

The Commission gave the breakdown for 2022 as follows: N9.64 trillion or 64.33 percent of the assets was invested in the Federal Government securities, N1.66 trillion for incorporate debt securities, N1.98tn for money market securities and N82.8bn for mutual funds aside other investment figures.

The Director-General of PenCom, Aisha Dahir-Umar marveled at the increase in pension fund assets in the third quarter of 2022 despite the economic situation globally.

She averred that the Pension Scheme will diligently deliver good and quality services for the benefit of its contributors.

Dahir-Umar noted that the Commission has broadened its means of acquiring funds for the scheme and embarked on infrastructure projects amongst other forms of investments.

She said the efforts put forth are yielding much increase which makes the Commission ahead of the economic situation and inflation. 

The Director-General hinted that steps have been taken to enable the commission’s annual average rates of return of pension funds in Retirement Savings Account and legacy funds to rise above inflation rates.

Her words, “This laudable performance, in the growth of the AuM, points to the fact that the pension industry will continue to deliver value and benefit to its stakeholders and the nation’s economy. Perhaps, the most significant achievement recorded in the third quarter of 2022 was the successful issuance of guidelines on accessing RSA.

“Balance towards payment of equity contribution for residential mortgage. The guidelines give effect to Section 89(2) of the Pension Reform Act 2014, which allows eligible RSA holders to apply a percentage of the balances in their Retirement Savings Accounts for payment of equity contribution towards residential mortgage for employees of the public, private and the informal sectors.”