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🔴 Breaking News:
By Engr. Kabiru el-Hussain Rumah (Jakadan Rumah)
Let us, individually and collectively, familiarize ourselves with the following pension facts and figures concerning Nigeria:
- Did you know that, according to the Pension Commission of Nigeria (PenCom), in its Monthly Pension Report (MPR) of December 2024, the total Assets Under Management (AUM) of the Contributory Pension Scheme (CPS) of Nigeria, as of 31st December 2024, stands at ₦22,512,346,140,000.00 (approximately ₦22.5 Trillion)?
- As of 31st December 2024, there are 10,582,299 Retirement Savings Accounts (RSAs) belonging to both the aware and unaware Nigerians, including my own RSA under the Micro Pension Plan (MPP) of PenCom, which I have personally maintained since January 2022!
- The ₦22.5 Trillion Pension Assets of Nigeria are held by three (3) Pension Fund Custodians (PFCs) and managed by nineteen (19) Pension Fund Administrators (PFAs), all duly licensed by PenCom, the sole regulator of Nigeria’s pension industry.
- Of the ₦22.5 Trillion Pension Assets, the actual and cumulative pension contributions from all existing Pension Contributors under the Contributory Pension Scheme (CPS) since its inception in June 2004 have been interpolated from the 3rd Quarter 2024 Pension Industry Performance Dashboard (PIPD) to be approximately 51%, which amounts to ₦11,481,296,500,000 (approximately ₦11.5 Trillion). The remaining 49%, amounting to ₦11,031,049,600,000 (approximately ₦11 Trillion), represents the positive Returns On Investment (ROI) attributed to all actual and cumulative pension contributions since inception in Nigeria—the incredible power of compounding interest, often referred to as the eighth wonder of the world by Albert Einstein!
- As of 31st December 2025, the PUBLIC SECTOR of Nigeria’s pension contributions constituted 52%, amounting to ₦11,706,420,000,000 (approximately ₦11.7 Trillion), while the cumulative pension contributions of the PRIVATE SECTOR during the same period accounted for 48%, amounting to ₦10,805,926,100,000 (approximately ₦10.8 Trillion).
- Of the ₦22.5 Trillion Pension Assets, the Federal Government of Nigeria’s total outstanding borrowing against these assets, indirectly through public issuances of Federal Government Securities, is 61%, equating to ₦13,863,488,200,000 (approximately ₦13.8 Trillion).
- Conversely, the State Government of Nigeria’s total outstanding borrowing against the pension assets, through public issuances of State Government Securities, is a modest 1.1%, amounting to ₦250,855,020,000 (approximately ₦250.9 Billion).
- The Corporate Sector’s total outstanding borrowing against the pension assets, through public issuances of Corporate Securities, is approximately 10%, totaling ₦2,246,508,370,000 (approximately ₦2.2 Trillion). This clearly illustrates that the Federal Government of Nigeria, at 61%, has significantly crowded out much of the total borrowing of the pension assets, impacting the Private Sector and Corporate Sector adversely.
- Of the ₦22.5 Trillion Pension Assets, Fund VI (Islamic or Shari’ah Compliant Pension Assets) in Nigeria accounted for only a meager 0.45%, amounting to ₦100,575,450,000 (approximately ₦100.5 Billion).
- Finally, Sukuk (Islamic Bonds), as an outstanding asset class of the Federal Government of Nigeria, accounted for just 0.42%, amounting to ₦93,656,740,000 (approximately ₦93.7 Billion).
This information is provided for our collective awareness!
© Engr. Kabiru el-Hussain Rumah (Jakadan Rumah) originally conducted this analysis. Engr. Rumah is the founder of Jakadan Rumah Foundation (JRF), Katsina State, the Home of Hospitality, based on the Monthly Pension Report (MPR) of the Pension Commission of Nigeria as of 31st December 2024 (08038473713).
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