Chairman’s Statement in PenCom 2021 Annual Report

I am most delighted to present the Commission’s 2021 Annual Report, which highlights significant developments in the pension industry during the year.

This Report provides industry stakeholders and the general public with details of strategic activities that focused on ensuring the prompt payment of retirement benefits, as well as efforts aimed at promoting a vibrant and sustainable pension industry that positively impacts the Nigerian economy.

I would like to commend the sustained efforts of the Management, staff and our teeming stakeholders which ensured that the Commission’s medium-term objectives, as encapsulated in the five strategic focus areas, yielded the desired results.

I am elated to note that despite the overwhelming uncertainties in global economic climate in the aftermath of the Covid-19 Pandemic and the challenging macroeconomic environment, the pension industry recorded a total of 9.59 million in schemes membership and N13.42 trillion in Pension Assets under Management as at 31 December 2021. This laudable performance, in key growth parameters, points to the fact that the pension industry will continue to deliver value and benefit to our stakeholders and the nation’s economy in years to come.

During the year under review, the Commission steadily pursued increased diversification of Pension Fund portfolios by ramping up efforts aimed at ensuring sustained investment of Pension Fund in structured infrastructure projects that meet the stringent requirements as enshrined in the Regulation for the Investment of Pension Fund Assets.

We are glad to report that out of the N8.77 trillion or 65.35% of the total pension Assets Under Management (AuM) invested in Federal Government Securities, pension funds directly invested N118.31 billion in the Sukuk Bond issued by the Federal Government to finance road projects nationwide, N59.32 billion was invested in FGN Green Bond, while N14.30 billion was invested in Agency Bonds issued by the Nigeria Mortgage Refinance Company.

Although the Commission’s efforts at diversifying investments of pension funds and hedging against inflation has gradually began to yield results, it is, however, worthy to note that efforts are ongoing to ensure that the annualized average rates of return of pension funds across RSA and Legacy Funds are above headline inflation rates.

Perhaps, the most significant achievement recorded in the 2021 Financial Year was the successful release of the sum of N159.46 billion to defray some aspects of outstanding pension liabilities of the Federal Government under the CPS. This followed the Commission’s unwavering commitment to ensuring prompt resolution and payment of all pension liabilities, in line with the paramount objectives of the CPS.

It is pertinent to note that this effort could not have been easy without the overwhelming support and concerted efforts of the Presidency in granting expedited approval to the Commission’s request. We, therefore, express our profound gratitude to His Excellency, President Muhammadu Buhari, for graciously considering and acceding to the Commission’s request. This and many of such thoughtful presidential considerations, reecho Mr. President’s visionary and people-oriented approach to national leadership and development.

Another strategic and proactive step taken by the Commission to curtail the exigencies occasioned by the outbreak of the Covid-19 Pandemic, was the automation of all business and operational processes to drastically reduce turnaround time and improve customer experience. In furtherance of this, the Commission successfully deployed the Electronic Enrolment System, a self-help, web-based application designed to significantly ease the in-person verification and enrollment of employees of treasury funded MDAs of the Federal Government who were slated for retirement in 2021. This milestone is indeed, a testimony to the Commission’s commitment to continuous process improvements and safeguarding the health and safety of our critical stakeholders especially in these uncertain times of rising health related crisis across the globe.

It is an incontrovertible fact that the Commission has been providing the much needed regulatory and supervisory guidance to the Pension Industry since the advent of the CPS in 2004. We have continually evolved through strategic and consultative approaches to remain best positioned to respond to the ever-dynamic business environment. We shall, therefore, stay the course in our pursuit of strategic partnerships with other regulatory agencies and global financial affiliates in order to create a world of sustainable regulatory and supervisory framework, ultimately aimed at ensuring that the primary objectives of the CPS are achieved. In this regard, the Board would continue to readily provide strong leadership and support all strategic priorities and opportunities that align with the pension industry’s future growth strategies.

In our determination to improve the financial condition and operational efficiency of the PFAs, the Commission increased the Minimum Regulatory Capital (Shareholders’ Fund) requirement for the PFAs from the N1,000,000,000 to N5,000,000,000 unimpaired by losses. The increase in the minimum regulatory capital, is expected to strengthen the capacity of the PFAs and increase their presence nationwide through the creation of more business outlets and generally improve service delivery to members.

These significant achievements in the Nigeria Pension Industry could not have been possible without the right people, strategy, culture and governance structures that support the delivery of consistent and sustained value for all our stakeholders. We have, once again, demonstrated our firm assurance to serving the needs of our stakeholders and providing global best practices in pension regulation and supervision.

I, therefore, wish to most heartily express my sincere gratitude to the Director General and the Commissioners, for their exceptional and astute leadership qualities that helped drive the strategic direction of the Commission during the year. To the Staff of the Commission, your contributions to the successes recorded in the industry have been duly noted and shall continue to be supported and rewarded towards obtaining optimum results in delivering the mandates of the Commission. I urge you to be relentless and remain loyal to the values of the Commission in your collective efforts toward strengthening the pension industry, as well as achieving the objectives of the pension reforms in Nigeria.

Let us sustain this momentum in the coming year.
Thank you.
Dr. Oluremi Oyindasola Oni
Chairman National Pension Commission (PenCom)

Check below for PensionNigeria breakdown of all the important aspects of the PenCom 2021 Annual Report

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PenCom 2021 Annual Report Breakdown

Chairman’s Statement in PenCom 2021 Annual Report
Director General’s Report in PenCom 2021 Annual Report
Analysis of Pension Operating Environment for the Year 2021
Micro Pension Registrations per PFA as at Dec 2021 and Fastest Growing PFAs by Micro Pension Registrations
Update on the Micro Pension Plan for Year 2021
N93.49 Billion Pension Contributions not in Contributors Retirement Savings Account
Defaulting Employers pay Penalties of N10.03 billion into Employees RSA as PenCom takes 67 Employers to Court
Redacted Reports – Unfunded RSAs and RSAs with Incomplete Documentation
PTAD paid N99.94 billion to Federal Government Retirees in 2021
PenCom Stakeholder Engagement and Public Enlightenment Activities in 2021
Biggest PFAs by RSA Pension Fund Assets under Management & Fastest Growing PFAs in 2021
Update on Implementation of Minimum Pension Guarantee
PenCom provides Scanty Update on using RSA for Payment of Residential Mortgage
PenCom approved over N1.46 Trillion for PFAs to pay RSA Holders
PFAs made over N340.57 Billion Total Income in 3 years

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