Nigeria’s Pension Assets to Hit N19trn By End of 2024 – Report

Nigeria’s total pension assets, has been projected rise to an impressive N19 trillion by the end of 2024, according to a Pan-African credit rating agency, Agusto & Co.

This projection is contained in a report titled, “The Nigerian Pension Industry – Unlocking Potential Amidst Economic Uncertainties,” recently published by the agency.

Agusto said Nigeria has the second-largest pension industry in Africa with assets under management (AuM) of N16.1 trillion ($34.9 billion) as at May 31, 2023, representing a 13.5 percent increase from the corresponding period in the prior year.

The agency said the 13.5 percent growth was primarily fueled by robust investment returns and, to a lesser extent, by additional contributions, mirroring the patterns observed in other well-established pension markets.

It also said the pension industry witnessed a notable increase in the number of new contributors, surpassing 300,000 individuals.

The agency said the pension industry continues to operate within a highly regulated environment, positioning itself as a significant player in the financial services sector.

It commended the National Pension Commission (PenCom) for its commitment to implementing initiatives aimed at bolstering transparency and fostering active engagement in pension schemes.

The statement reads, “Going forward, Agusto & Co. foresees a 13% year-on-year growth in the pension industry’s AuM, propelling the total pension assets to an impressive ₦19 trillion by the end of 2024,” the report reads.