Since the establishment of Nigeria’s Contributory Pension Scheme (CPS) following the Pension Reform Act 2004, the scheme has been hailed as one of the government’s most successful reform policies. This success is attributed to addressing financing deficits and mismanagement while ensuring retirees’ financial security.
- Programmed Withdrawal Payouts: A cumulative total of N964.24 billion has been disbursed through programmed withdrawals since the scheme’s inception to June 2023.
- Life Annuity Payments: Retirees have received N227.29 billion in life annuity payments, offering a steady income stream for their retirement years.
- Death Benefits: Contributions toward death benefits have reached N356.32 billion, supporting the families of deceased contributors and retirees.
- Enbloc Retirement Payments: Enbloc payments for retirement benefits amount to N43.31 billion, facilitating lump sum withdrawals for retirees.
- 25% Withdrawals: Withdrawals of 25% of pension savings have totaled N208.86 billion, providing retirees with immediate access to a portion of their funds.
Former President Olusegun Obasanjo recently commended the growth of pension assets over the past two decades, highlighting the impact of pension reforms initiated during his administration. He emphasized the need to harness pension assets for national development, particularly in infrastructure investment.
The National Union of Pensioners Contributory Pension Scheme (NUPCPS) lauded the CPS as a transformative policy, citing its elimination of fraud, payment certainty, and improved planning for pensioners. However, they called for enhanced transparency and engagement from industry stakeholders.
In response, PenOp CEO Oguche Agudah reiterated the industry’s commitment to pensioners’ welfare, promising continued dialogue and efforts to optimize outcomes for retirees.