Total membership of pension schemes in the country increased by 3.6 per cent from 8.95 million recorded in December 2019 to 9.3 million of the same month in 2020, according to the National Pension Commission (PenCom) in its recently released 2020 Annual Report.
According to the report, growth in the industry is said to have been triggered by factors such as increase in the level of compliance by the public and private sectors owing to steps taken by the commission to improve compliance and coverage, as well as enhanced market penetration and strategies deployed by the PFAs.
According to the report, membership of the Retirement Savings Account (RSA) dominated the total Pension Scheme memberships at 9.2 million, representing a 99.40 per cent, while the AES and the CPFAs accounted for the balance of 0.60 per cent; which is made up of 40,951 and 14,926 members respectively.
Similarly, the growing acceptance of the Micro Pension Plan by the informal sector as at year-end 2020 pushed the total membership count to 62,463.
The report also said RSA registrations increased from 8,891,236 as at 31 December 2019 to 9,215,788 as at 31 December 2020, representing a growth rate of 3.65 per cent or 324,552 in absolute terms.
The total pension contributions remitted into the RSAs of employees in both the Public and Private sectors in 2020 according to the report increased significantly from N700.69 billion recorded in 2019 to N908.09 billion as at 31 December 2020, which indicated a 29.60 per cent growth over the reporting period.
Furthermore, aggregate pension contributions revealed that the Public Sector (including, FG, states and local governments) accounted for N536.97 billion during the year, representing a 61.95 per cent growth (year-on-year) when compared with the N331.56 billion recorded as at 31 December 2019.