June 29, (THEWILL) — The Nigerian Exchange Limited (NGX) saw a positive trend in its Pension Index in June, indicating increasing investor confidence in the technology-backed reforms embarked by the Nigerian Pension Commission (PenCom) with a significant rise in pension fund assets.
It also reflects the bullish trend in the equity market as investors reap N13.2 trillion year-to-date when equities market capitalisation rose to N75.96 trillion from N62.76 trillion that opened the first trading day on January 2, 2025. The All-Share Index also climbed to 119,995.76 points during the period against 102,926.40 points in January.
Specifically, for the week ending June 5, the NGX Pension Index rose by 3.48 percent to close at 5,424.62, up from 5,242.42 the previous week. For the week ending June 20, it rose further by 4.21 percent to 5,706.80, and surged to 5,830.11 for the week ending June 27, reflecting a rise of 2.15 percent. This indicates a generally bullish sentiment towards pension-related stocks within the market.
Nigeria’s pension fund assets continued their upward trajectory in April 2025, rising to N23.65 trillion, up from N23.33 trillion recorded in March, according to data from the National Pension Commission (PenCom).
This represents a 1.40 percent month-on-month increase, and constitutes a 19.56 percent growth year-on-year against N19.78 trillion recorded in the corresponding period of 2024.
While the growth could be attributed to sustained investor confidence and strategic asset reallocations across both fixed-income and alternative investment classes, the role of technology cannot be downplayed.
PenCom has accelerated integration of technology into every facet of the pension industry to make the Contributory Pension Scheme (CPS) more accessible and sustainable. It intensified digitising the processes in order to enjoy flexible payment options and enhance customer service delivery, among others.
The digitisation includes online applications for Pension Clearance Certificates (PCCs) and the process of pension contributions and remittances. Also, it has installed an e-application portal for PCCs — an online platform which allows companies to apply for and receive PCCs seamlessly.
The digital revolution has positively impacted the Micro-Pension Plan (MPP) framework which allows for flexible contribution remittance. This enables participants to contribute daily, weekly, monthly, or as convenient, through cash deposits, electronically, or via CBN-approved payment platforms.
Following this development, PenCom is developing a robust technology-support platform to enhance customer services, including registration, RSA support, and financial advisory, ensuring efficient and effective service delivery.
By digitising pension contributions and remittances, PenCom aims to ensure seamless processing of contributions and resolve discrepancies caused by incomplete remittance details, improving compliance and efficiency in the pension sector.
These will rub off on the major policy shifts that have occurred in the commission to enhance its operations and promote quality service delivery, especially the recent shifting landscape towards decentralisation of pension benefit processing.
In a major policy overhaul, PenCom has granted Pension Fund Administrators (PFAs) the full authority to approve and process several categories of retirement benefits without requiring prior approval from the Commission.
This policy change, which took effect on June 1, 2025, aimed at streamlining pension payments and reducing bureaucratic delays in the CPS.
Previously, PFAs were required to seek PenCom’s ‘No Objection’ before disbursing funds to Retirement Savings Account (RSA) holders.
However, under the new directive, PFAs can now process and approve various benefits, including programmed withdrawals, retiree life annuities, benefits for temporarily unemployed individuals, and refunds for those exempted from the CPS.
This means that RSA holders seeking to access their retirement funds will experience a faster and more efficient approval process. With the new framework in place, PFAs must process, approve, and complete payment instructions within two working days of completing the necessary documentation.
The new directive is expected to enhance service efficiency and accelerate pension benefits processing. RSA holders will no longer have to wait for PenCom’s approval before accessing funds, resulting in a more seamless experience for retirees and individuals eligible for benefits.
By empowering PFAs to fully execute their statutory functions, PenCom is reinforcing the autonomy of pension administrators while maintaining regulatory oversight. Technology will play a huge role in achieving the objective.
“PenCom must install appropriate technology in order to cope with the challenge of the new policy, as well as address infractions by defaulting entities,” said Ademola Johnson, a pension analyst. In this regard, PenCom has stepped up measures to deal with actions that could sabotage the 21-year-old scheme.
For instance,tThe Commission has said it will blacklist organisations that fail to meet their pension remittance obligations from November 10, 2025.
The Director-General of PenCom, Ms Omolola Oloworaran, who announced the warning during a media parley held in Lagos on June 18, said, “It is now zero tolerance for non-compliance” as the Commission adopts a firmer stance to enforce the 2014 Pension Reform Act.
“Every organisation, public, private, big or small, must comply with pension remittance obligations. No exceptions, no delays.
“All Pension Fund Administrators and Custodians have been directed to ensure every vendor, service provider, and counterparty has a valid Pension Clearance Certificate (PCC) that indicates that they have been up to date and compliant with pension contributions.
“By November 30 this year, any entity without a PCC will be blacklisted and cut off from pension business with all PenCom regulated entities.”
PenCom has reported significant progress in clearing pension arrears. All retirees who exited the service up to March 2025 have now received both their accrued pension rights and ongoing monthly entitlements.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
