Monthly pension payment to hit N11.9bn as assets grow by 820bn – PENCOM

With effect from June, the total monthly pension payment under the Contributory Pension Scheme (CPS) will increase from N8.3bn to N11.9bn, the National Pension Commission (PENCOM) has disclosed. The payment directly benefits 233,000 retirees depending on their pension account, according to the Director-General of PENCOM, Omolola Oloworaran. She spoke in Lagos on Thursday during the […]

With effect from June, the total monthly pension payment under the Contributory Pension Scheme (CPS) will increase from N8.3bn to N11.9bn, the National Pension Commission (PENCOM) has disclosed.

The payment directly benefits 233,000 retirees depending on their pension account, according to the Director-General of PENCOM, Omolola Oloworaran.

She spoke in Lagos on Thursday during the second quarter briefing of PENCOM, where the DG declared zero tolerance for non-compliance, even as she disclosed that the commission is just steps away from clearing all pension arrears.

At the briefing attended by Pension Fund Operators and Administrators, the commission’s head of compliance, Abdulrahman Saleem, gave an update on the pension fund, disclosing that the pension fund has hit N23.23 trillion as of March 2025, an increase of N820bn compared to the last quarter’s figure in December 2024.

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The DG, flanked by other executives of the commission, disclosed that the increase in monthly payment was made possible by “Strong RSA investment performance and visionary economic reforms under the leadership of President Bola Ahmed Tinubu.”

She further disclosed that retirees up to March 2025 have been paid their pensions, retirement benefits, while they are now receiving their monthly pensions.

“Ladies and gentlemen, I’m pleased to let you know that the end of pension arrears is very near. After years of anxiety and injustice, we are finally breaking the chains of pension backlogs. Thanks to the decisive leadership of President Bola Tinubu, we have witnessed stable and consistent releases of funds for accrued rights since November last year.

“As of today, retirees up to March 2025 have been paid their pensions, they have gotten their benefits and are now receiving their monthly pensions.

“We are just steps away from eliminating pension arrears entirely, a historic milestone that will set the credibility of the contributory pension scheme. For once, the word retirement will not mean fear and uncertainty but dignity and predictability.”

 

‘To blacklist non-compliant entities’

Oloworaran, while declaring zero tolerance for non-compliance disclosed that by 30th of November this year, any entity without a Pension Clearance Certificate (PCC) will be blacklisted and cut off from pension business with all PENCOM regulated entities.

“This directive also extends to banks, investment counterparties, parent companies and shareholders of licensed pension funds administrators and custodians.

“All pension fund-affiliated entities must enforce the pension clearance certificate requirements across their operators and across all ecosystems and submit annual compliance attestation.

“We are drawing a red line in the sand. Pension compliance is no longer optional; it is existential. Only those who value the future of their employees can participate in this ecosystem and the rewards that we focus on,” she added.

She reiterated that the commission under her management is making pension contribution a way of life, saying PENCOM is working with regulatory bodies across the country to ensure compliance at every level.

“Moving on, it is now zero tolerance for noncompliance with the Pension Reform Act of 2014. Effective immediately, PENCOM has launched an uncompromising compliance drive to ensure the Pension Reform Act is complied with by every operator.

“Every organisation – public, private, big or small must comply with pension remittance obligations, no exceptions, no debate, all PFAs and PFCs have been directed to ensure every vendor, service provider and counter party has a valid pension clearance certificate, that is an evidence that they have been up to date and compliant with pension contribution,” she added.

The head of compliance said the reason for the growth in the pension fund was a result of additional contributions and incomes generated by the investment of the funds.

Giving the breakdown, he disclosed that the RSA Fund accounted for 77 per cent of the total pension assets; existing schemes account for 12%, while the closed pension funds account for 11%.

“Majorly, these assets are invested in the federal government’s securities, which account for 62% of the total investments, followed by domestic ordinary shares (11.02%); money market instrument accounts for 8.1%. With regards to the funds’ performance, the industry portfolio reported an annualised year-to-date performance of 19.29% as of the first quarter,” he said.