An Analysis of Nigeria's Pension Industry: Growth, Challenges, and Resilience from 2008 to 2020
1 Department of Actuarial Science and Insurance at the Faculty of Management Science, University of Lagos, Lagos, Nigeria
2 PhD candidate in the Department of Actuarial Science and Insurance at the Faculty of Management Science, University of Lagos, Lagos, Nigeria
* Corresponding author: ashimbabatundesogunro@femsbukjournals.org.ng
2 PhD candidate in the Department of Actuarial Science and Insurance at the Faculty of Management Science, University of Lagos, Lagos, Nigeria
* Corresponding author: ashimbabatundesogunro@femsbukjournals.org.ng
Abstract
This study provides an analysis of Nigeria's pension industry from 2008 to 2020, utilizing dataobtained from the National Pension Commission (PenCom). It examines the growth and challengesof retirement savings account registration, pension operators, contributions, assets, and fundportfolio administration in the country. The data for this study, spanning 2008 to 2020, was sourcedfrom the annual reports of PenCom, and a descriptive research design was employed to analyzethe growth, challenges, and resilience of the Nigerian Pension Industry during this period. Keymilestones include the implementation of the Contributory Pension Scheme (CPS), growth inpension assets, and increased pension coverage among the workforce. Private sector contributionsto pension funds showed significant fluctuations but ultimately grew substantially, while publicsector contributions demonstrated a more consistent upward trend. By 2020, public sectorcontributions had exceeded those from the private sector, possibly influenced by the economicimpact of COVID-19. The pension fund market features a diverse range of operators, with 31licensed PFAs managing funds across various sectors by 2020. The concentration of market shareamong leading Pension Fund Administrators (PFAs) indicates a competitive environment, withmajor entities capturing a significant portion of Retirement Savings Account (RSA) and MicroPension Plan (MPP) registrations. Overall, the Nigerian pension sector has exhibited robust growthand resilience, effectively navigating economic challenges and expanding its asset base. The steadyincrease in both public and private contributions, alongside the diversification of pension assets,points towards continued enhancement of financial security for retirees
Keywords
Contributory Pension Scheme
Pension Fund Administrators
Retirement Savings Keywords: Contributory Pension Scheme
Pension Fund Administrators
Retirement Savings
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How to Cite
Sogunro, A. B., Oyelade, O. O., & Hamadu, D. (2024). An Analysis of Nigeria's Pension Industry: Growth, Challenges, and Resilience from 2008 to 2020. Bayero University Journal of Finance, 1(1), 34-46. https://doi.org/10.67894/bjf.2024.wxw45vdg
A. B. Sogunro, O. O. Oyelade, and D. Hamadu, "An Analysis of Nigeria's Pension Industry: Growth, Challenges, and Resilience from 2008 to 2020," Bayero University Journal of Finance, vol. 1, no. 1, pp. 34-46, June 2024. doi: 10.67894/bjf.2024.wxw45vdg
