11 November 2012

Nigeria: PenCom Sets to Rake in U.S.$100 Billion By the Year 2020

The National Pension Commission (PenCom) has said that the commission is set to rake in over $100 billion by the year 2020, about 20 percent of the nation's Gross Domestic Products (GDP) as against the current $18 billion assets of the pension fund which is about seven percent GDP.

The Director General of the National Pension commission (NPC) Mr Mohammed Ahmed told LEADERSHIP that this is feasible going by the rate of 25 percent growth that the fund is currently witnessing on annual basis.

According to him, this growth which is quite commendable shows that the sector is growing more than the economy. However he insisted that with this type of growth there is the need to ensure proper management of the fund.

He noted that the fund has so far registered about 5.32 million contributors from 180,586 employers as at October 2012 which is commendable and is an indication that the fund is growing and gaining ground in all the sectors of the economy adding that over 55,904 retirees are currently receiving their monthly pensions as and when due.

The pension boss pointed out that this fund is focused to promote and sustain Social Safety Net (disability benefits, retirements and death benefits). 'Ensures efficient allocation of resources to productive sectors; Broadens the scope of economic activities, development of infrastructure and SMEs that ensures sustainable growth as well as promotes capital formation and promotes better corporate governance' he said.

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