483,464 Nigerians Rush to Pension Savings, Withdraw N247.47 Billion Due to Hardship
- About 484 464 retirement savings account holders have withdrawn over N247.47 billion from pension funds
- The account holders said they withdrew the money to job losses and unemployment
- The amount in the second quarter of 2024 surpasses the N182.2 billion withdrawn by 443,720 savings account holders in Q3 of 2023
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
In the second quarter of 2024, about 484,464 Nigerians withdrew over N247.47 billion from their retirement savings accounts due to job losses.
Data from the National Pension Commission (PenCom) shows that the withdrawals represent 25% of their pension savings, highlighting the impact of the rising cost of doing business in Nigeria, which has led to widespread unemployment.
Source: UGC
Nigerians blame job losses for withdrawals
The withdrawal amount in the second quarter of 2024 surpasses the N182.2 billion withdrawn by 443,720 savings account holders in Q3 of 2023, which critics say was due to President Bola Tinubu’s government's bad policy implementation.
The Pension Funds Operators Association of Nigeria (PenOp) chief executive, Ogwuche Aguda, said during the 2024 annual conference of Abuja's Pension Correspondents Association of Nigeria (PenCAN) conference.
He gave an update on the contributory pension scheme, stating that contributions from the public and private sectors increased to N5.72 trillion in the second quarter of 2024, while the total pension assets hit 20.87 trillion as of the same period.
Pensioners criticise FG’s implementation strategy
According to Aguda, N169.67 billion, representing 0.81% of total assets, was invested in infrastructure as of July.
Additionally, N2.16 trillion, or about 10.35% of total assets, was invested in the equity market, while N2.25 trillion was directed into corporate debt in the second quarter of 2024.
He applauded the Contributory Pension Scheme (CPS) for its impact on pension management in Nigeria, describing it as a shift from a broken system to a transparent and reliable scheme.
Leadership reported that the National Union of Pensioners criticised the 2004 Pension Reform Act for not addressing important issues, including periodic adjustment of pension retirees.
The union claims this weakness has made the Nigeria Police want to exit the scheme.
Reports say that PenCom reassured Nigerians that the Nigerian government’s outstanding pension liabilities under the CPS will soon be cleared.
Nigerians rush to withdraw N9.2bn from their pension savings
Legit.ng earlier reported that the second quarter report provided by the National Pension Commission, PenCom, has shown that the RSA holders withdrew N23.4 billion during the period.
However, the second quarter report reveals slower withdrawals: 5,528 RSA account holders withdrew N9.2 billion in Q2’24, as against 8,651 RSA holders who took N14.2 billion in the first quarter.
However, the Vanguard reported that a few industry watchers ascribed the increased figure in Q1'24 to the customary financial challenges that start the year.
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Source: Legit.ng
