Pension fund assets hit n8 14 trillion pencom #
According to the National Pension Commission (PenCom), the total assets of pension funds in Nigeria have hit N14 trillion.
As of December 2022, the total assets under management by pension funds in Nigeria stood at N14.14 trillion, representing a significant increase from the N10.14 trillion recorded in 2020.
This growth is attributed to various factors, including:
- Increased contributions from employees and employers: The mandatory pension contribution rate of 15% of an employee's salary, with 5% contributed by the employee and 10% by the employer, has led to increased contributions.
- Investment returns: Pension funds have generated significant returns from their investments in various asset classes, such as stocks, bonds, and real estate.
- Regulatory reforms: PenCom has implemented various reforms to improve the efficiency and effectiveness of the pension industry, including the introduction of a new pension fund management framework.
The growth of pension fund assets is significant for several reasons:
- Retirement security: The increased assets will help to ensure that retirees receive their pension benefits in full and on time.
- Economic growth: The pension industry is a significant contributor to Nigeria's economy, and the growth of pension fund assets will have a positive impact on economic growth.
- Financial inclusion: The pension industry has the potential to promote financial inclusion by providing a savings vehicle for low-income earners and promoting financial literacy.
Overall, the growth of pension fund assets in Nigeria is a positive development that will have long-term benefits for the economy and the pension industry.