The Pension Fund Operators Association of Nigeria (PenOp) has announced a significant milestone in the nation’s pension industry, with a total of N1.63 trillion disbursed as lump sum payments to 442,000 retirees by the second quarter of the current year.
These payments were facilitated through program withdrawals and annuity products, marking a substantial achievement for the association.
The Chief Executive Officer of PenOp, Mr Oguche Agudah, shared these insights during a media parley titled “At the dawn of 20 years of pension reform, what are the gains?” which took place in Lagos.
In his address, Mr Agudah revealed that N665.13 billion was allocated to 111,708 applicants for life annuities, while N964.24 billion was distributed to 330,201 retirees within the same timeframe.
Additionally, he highlighted that 475,000 Nigerians who were rendered jobless received 25% of their Retirement Savings Accounts, totaling N208.86 billion.
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The CEO emphasised the pension industry’s commitment to the welfare of beneficiaries of deceased employees, with N356.32 billion paid out as death benefits to 91,214 beneficiaries. This figure stands in stark contrast to the N6.31 billion paid to 2,896 beneficiaries during the same period in 2011.
Addressing the housing needs of pensioners, Mr. Agudah mentioned that the industry processed 649 applications and approved N7.89 billion for equity contributions towards residential mortgages.
Mr. Agudah also shed light on the Assets Under Management (AUM) within the pension industry, which reached an impressive N17.35 trillion.
This amount represents a compound annual growth rate of 20.32% since 2007 when the AUM was at N815.18 billion.
He noted the increased contributions from both public and private sectors, which amounted to N9.37 trillion in the second quarter of 2023, signifying a 54% increase.
The PFAs have invested N7.98 trillion, yielding a 46% return on investment.
The pension fund’s contributions to infrastructure, the equity market, and corporate debt securities were also acknowledged by the PenOp boss.