In a recent disclosure, the Chief Executive Officer of the Pension Fund Operators Association of Nigeria (PenOp), Mr. Oguche Agudah, announced that pension fund administrators have paid a total of N356.3 billion as death benefits to 91,214 employee beneficiaries as of the second quarter of 2023. This significant milestone showcases the effectiveness of the Contributory Pension Scheme (CPS), which was established in 2004.
Additionally, Agudah revealed that 649 applicants have been approved for equity contributions for residential mortgage requests, amounting to N7.9 billion. This emphasizes the commitment of pension fund administrators in supporting employees’ housing needs.
Furthermore, Agudah highlighted that public sector contributions reached N4.78 trillion by Q2’23, while private sector contributions reached N4.5 trillion. These figures indicate the substantial growth and stability of the pension system.
The combined contributions and investment returns from both sectors amounted to N17.35 trillion. Notably, N349.9 billion has been invested in infrastructure, demonstrating the contributions of the pension system to the nation’s economic development.
President of PenOp and Chief Executive of Stanbic IBTC Pension Managers Limited, Olumide Oyetan, praised the CPS as one of the greatest national policies since democracy. He emphasized the significant improvement it has brought to retirees’ lives, as they are now spared from the clutches of old age poverty.
Oyetan lauded the robust structure of the CPS, consisting of regulators, Pension Fund Administrators (PFAs), and Pension Fund Custodians (PFCs), which provide safe valves, checks, and balances. He called on the government and the public to maintain their faith in the CPS, which has thrived for the past 19 years without any incidents of fraud.
The success of the CPS reflects its vital role in providing financial security and stability for retirees in Nigeria. With continuous support and commitment from all stakeholders, the pension system is set to further enhance retirees’ welfare and contribute to the nation’s economic growth.
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