Only 12% of workers contributing to pension scheme –PenCom

Out of the over 70 million people that represent the working population in Nigeria, only 8.41 million of them are currently making contributions into the Contributory Pension Scheme.

The 8.41 million contributors, according to figures obtained from the National Pension Commission, are about 12.09 per cent of the country’s working population.

When compared to the entire population of the country, the 8.41 million contributors are just about 4.29 per cent.

These figures are contained in a document sent by the Acting Chairman of PenCom, Aisha Dahir-Umar, to an ad hoc committee of the House of Representatives set up to investigate the activities of the commission.

The Contributory Pension Scheme commenced in 2004 with the key objectives to assist individuals to save to cater to their livelihood during old age;

as well as establish a uniform set of rules and regulations for the administration and payment of retirement benefits in both the public and private sectors.

In the document obtained by our correspondent, the commission said that total pension fund assets had grown to N8.63tn as of December 2018, with average monthly contributions of N29.15bn.

It said the total pension asset was equivalent to 7.40 per cent of the Gross Domestic Product of the country.

The documents stated that as of December 2018, over 260,808 persons had retired under the scheme.

These 260,808 retirees, according to PenCom, are currently receiving an average monthly pension payment of N10.18bn.

It read in part, “The pension reform has gained public confidence and acceptability within the short period of its implementation.

“The private sector, which hitherto was apprehensive of the Contributory Pension Scheme as a ploy by the public sector to raise funds to address its huge pension liabilities, has come to accept and is religiously implementing the reform.

“To date, about 200,000 private sector employers of labour are implementing the CPS and have contributed about 60 per cent of the total pension fund assets.

“The Contributory Pension Scheme has also introduced transparency and integrity in the pension administration system in Nigeria.

“From the inception of the reform to date, there had not been a single incidence of fraud or mismanagement of the pension funds and assets under the scheme.”