Pensioners withdraw N247.5b from Retirement Savings Accounts
admin
About 483,464 pensioners have so far withdrawn N247.47 billion from their Retirement Savings Accounts (RSAs) in the second quarter of 2024 due to job loss, as shown by national pension commission data 2024.
The withdrawal represents 25 per cent of their pension savings as it stresses the impact of the rising cost of doing business in Nigeria, leading to high unemployment rate.
This was disclosed by the CEO, Pension Funds Operators Association of Nigeria (PenOp), Ogwuche Aguda during the 2024 annual conference of the Pension Correspondents Association of Nigeria (PenCAN) in Abuja, as he quotes the National Pension Commission data, (PenCom).Oguche added that the withdrawal amount in Q2 2024 significantly exceeds the N182.2 billion withdrawn by 443,720 RSA holders in Q3 2022, showing the deteriorating economic conditions, attributed by critics to faulty policies implemented by the current administration.The PenOp CEO said, “Contributions from both the public and private sectors rose to N5.72 trillion in Q2 2024, while total pension assets reached N20.87 trillion as of the same period. N169.67 billion, representing 0.81per cent of total assets, was invested in infrastructure as of July 2024. Additionally, N2.16 trillion, or 10.35 per cent of total assets, was invested in the equity market, while N2.25 trillion was channeled into corporate debt in the second quarter of 2024.According to him, “The Contributory Pension Scheme (CPS) has a strong transformative impact on pension management in Nigeria, describing it as a shift from a broken system to one that is transparent and reliable”.
The Publicity Secretary, National Union of Pensioners, elections Bunmi Ogunkolade criticized the 2004 Pension Reform Act for failing to address key issues, including the periodic adjustment of pensions for retirees. The union claims this shortcoming has driven the Nigeria Police Force to seek an exit from the CPS.
“The new scheme can be better if we address its challenges. There has been no increment for years, which is why the Police and other stakeholders want to leave the scheme. The lack of adequate post-retirement support has led many to engage in corrupt practices to secure financial stability in their old age. If pensioners are well cared for after service, agencies like the ICPC and EFCC would have less work to do.”
Speaking, the Director General, PenCom Mrs. Omolola Oloworaran, who was represented by Head of Corporate Communications, Mr. Ibrahim Buwai, assured Nigerians that the federal government’s outstanding pension liabilities under the CPS will soon be cleared, as she states that the commission has successfully computed the backlog of pension liabilities.
Oloworaran emphasized that efforts are underway to resolve the issue swiftly assuring that this matter will soon be behind us. ‘ We are committed to addressing the outstanding arrears.
She said RSA holders can now use a portion of their pension savings as equity contributions for residential mortgages. This initiative has already empowered over 5,000 workers to achieve homeownership, with N47.13 billion disbursed as equity contributions from their RSAs to mortgage lenders.
