Nigeria’s Pension Assets Reach N32 Trillion

Nigeria’s pension assets have grown to N32 trillion, marking another milestone in the country’s pension reform journey, according to the National Pension Commission (PenCom).

The disclosure was made by PenCom Director-General Omolola Oloworaran while receiving a delegation from Kenya’s Retirement Benefits Authority (RBA) in Abuja. Represented by the Director of the Surveillance Department, Abdulrahaman Muhammad Saleem, she stated that the asset base now represents about 10.4 per cent of Nigeria’s Gross Domestic Product (GDP).

According to PenCom, the steady rise in Nigeria’s pension assets reflects the long-term success of the Contributory Pension Scheme (CPS) introduced in 2004. The commission attributed the growth to ongoing regulatory reforms, stronger governance standards and improved supervisory measures designed to safeguard contributors’ funds and strengthen retirement outcomes.

Oloworaran highlighted the Federal Government’s recent settlement of outstanding accrued pension rights as a major achievement for the pension industry. She noted that the intervention resolved a long-standing challenge that had delayed access to retirement benefits for many workers in treasury-funded Ministries, Departments and Agencies (MDAs).

She explained that the issuance of a Federal Government bond to settle accrued pension liabilities has significantly improved the retirement process. Under the new arrangement, accrued rights are transferred directly into retirees’ Retirement Savings Accounts (RSAs), allowing beneficiaries to begin earning investment returns immediately and reducing waiting periods.

Despite the progress, PenCom said it remains committed to implementing additional reforms aimed at strengthening governance, improving retirement security and ensuring the long-term sustainability of the Contributory Pension Scheme.

The visit by the Kenyan delegation formed part of efforts to study PenCom’s regulatory and supervisory systems. The four-member team was led by John Keah, Director of Market Conduct and Industry Development at the RBA.

Keah said Nigeria’s pension experience offers valuable lessons for Kenya due to similarities between both countries’ retirement systems. He noted that the delegation is particularly interested in PenCom’s environmental, social and governance initiatives, risk-based supervision framework, strategies for expanding pension coverage within the informal sector and the Diaspora Pension Arrangement.

The development highlights the growing recognition of Nigeria’s pension assets and regulatory framework as a model for pension sector reforms across Africa.

Do you think Nigeria’s pension reforms have done enough to guarantee long-term retirement security for workers?