The Nigerian pension industry achieved an unprecedented milestone in 2024 as the total pension assets under the Contributory Pension Scheme (CPS) soared to N22.51 trillion, marking a record-breaking annual increase of N4.16 trillion.
This represents a 22.65% year-over-year (YoY) growth, the highest percentage increase recorded in the last decade. The previous year’s total stood at N18.36 trillion as of December 2023, underscoring the sector’s sustained expansion and growing confidence in Nigeria’s pension system.
The National Pension Commission (PenCom), which oversees the administration of pension funds in the country, attributed this surge to strong investment strategies, regulatory reforms, and increased compliance by employers. The impressive N4.16 trillion addition to the pension assets in a single year is the largest ever recorded since the inception of the CPS in 2004, reflecting deepening trust in the scheme and its potential to drive long-term financial security for Nigerian workers.
Industry analysts note that diversified asset allocation and strategic investments in federal government securities, corporate bonds, real estate, and infrastructure funds played a key role in the asset growth. Additionally, improved enforcement of remittances and wider coverage of the scheme contributed significantly to the historic performance.
With Nigeria’s pension industry expanding at an accelerated pace, stakeholders are optimistic about the long-term sustainability of the scheme and its potential to bolster the country’s financial ecosystem.
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