Suleiman
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Chuks Udo Okonta
With N763 billion contributed as pension fund in 11 months of year 2016, as against N670 billion achieved in the same period in 2015, the pension industry remained stable in spite the economy quagmire that impeded growth in many sectors of the economy.
Data obtained from the National Pension Commission (PenCom), revealed that the pension assets stood at N4.549 trillion as at January 2015 and peaked at N5.219 trillion in November. It was also learnt that the asset was N5.254 trillion in January 2016 and N6.017 trillion in November.
According to the Managing Director, FUG Pensions Limited, Usman Suleiman, the contributory pension scheme remains robust in spite some challenges it is presently facing. He noted that the scheme is not under any threat, stressing that the identified challenges are being addressed.
“I will not say the contributory pension scheme is under threat but I would say is facing some challenges. However these challenges have actually been recognized by the regulator, the operators and government including the national assembly.
“For obvious reasons, the government may not be in a position to be funding its pension liabilities as required. We are not talking about current and the ongoing, but the accrued which the government is expected to be funding at about five per cent of the budgetary provision of the current wage bill,” he said.
