N1.63trn paid to 442,000 retirees as lump sum in 15years – PenOp

The Pension Fund Operators Association of Nigeria (PenOp)has affirmed that the nation’s total lump sum paid out to 442,000 retirees both on programmed and annuity in the last 15years amounted to N1.63trn.

This fact was made known in a paper delivered by the Managing Director/ CEO of the Pension Fund Operators of Nigeria, Mr. Oguche Agudah at this year’s edition of annual press conference organized for members of the Nigeria Association of Insurance and Pension Editors (NAIPE).

According to his paper, while addressing journalists stated that pension client growth of the RSA registration in the year 2007 was 2,543,178, while in July 2023, the number grew to 10,023,314.

Also, lump sum paid on life annuity in 2011, Q3 was put at N1.51bn paid to 111,708 applicants. In 2023, Q2, the sum of N665.51bn was paid to 111,708 applicants. The lump sum paid on programmed withdrawal in 2011, Q3 stood at N99,297bn to 35,419 applicants.

In 2023 Q2, N665.13bn was paid to 330,201 applicants. Withdrawal of 25% RSA balance due to loss of job was effected in 2011, Q2. N3.86bn was paid to27,168 RSA holders, while in 2023 Q2, the sum of N208,86bn was paid to475,235 RSA holders.

Total death benefits paid out, according to the paper, was N356.32billion paid out to 91,214 beneficiaries as at Q3 of 2023. Equity investment for residential mortgage request approved, amounted to N344.69bn in 2011 Q3, which represent 15.36%; while in 2023 the investment increased to N1.54trn.

Contributions to the fund by public sector Rose from N1.57trn in 2011 to N4.87trn Q2 of 2023, while Private sector contributions also grew fromN454.95 in Q3 of 2011 to N4.5trn. Public and private Sectors contributions and investment returns as at Q3, 2023 amounted to 54% and 46%, respectively.

Furthermore, the value of investment in infrastructure developments stood at N178.08bn in Q3 of 2011, which was only 7.94%. However, the value increased to N349.97bn representing 15.36% growth.

Pension fund investment in corporate debt was N69.32bn in 2011 which represents 3.09%, while in 2023, the amount grew toN1.86trn, representing 10.70% growth.

Concluding on expectations for the pension industry in 2024, Mr. Oguche Agudah stated the year would be “time for celebration of 20years of pension reform in Nigeria, as well as, a greater focus on pension, revision of investment guidelines, and a possible kick-off of off-shore investment” among others.

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