PenCom targets 20m workers on CPS

The National Pension Commission (PenCom) is targeting at least 20 million Nigerian workers to join the contributory pension scheme (PenCom) in it’s renew drive to get most Nigerian workers sign on to the scheme. Most of those targeted are workers in the informal sector. Dr. Aminu Farouk, the Head, Research and Corporate Strategy, PenCom disclosed this in a paper on “Contributory Pension Scheme for Self-employed Tailors and Garments Makers” delivered at a workshop in Lagos.

We are targeting 20 million Nigerians on the scheme mostly from the informal sector he said, adding that the strategy to achieve that is through “continuous education, engagement and special awareness campaigns “

Dr. Farouk also promised improved service delivery by the industry even as PenCom spreads its presence in all the six geopolitical zones and looking ahead for state offices.

PenCom he said is dedicated to ensuring voluntary buy-in by all Nigerians in order to have the benefits of the scheme.

Presently reduced to 21 Pension Funds Administrators, 7 Closed Pension Funds Custodians and 4 Pension Funds Custodians due to mergers and acquisitions.

He noted that the number of registered contributors was 6.4 million as at December, 2014. This represents about 6.8 percent of total labour force in Nigeria and 3.8 percent of total population. The public sector accounted for 48.68 percent of the total registrations. The private sector represents 51.31 percent.

He said over 140,000 had retired under the scheme as at June 2014 and are currently receiving pensions as and when due.

Accordingly, total pensions fund assets had grown to over N4.61 trillion as at December 2014, average monthly contributions about N30 billion, the assets were equivalent to about 7 percent of the Nigerian rebased GDP and about 60 percent of the total pension fund assets belongs to the private sector.