Pension Assets Can Hit N50trn with Wider Investment, Coverage – Expert
A legal expert, Mr Ivo Takor, has urged stakeholders in the pension industry to deepen investment diversification, strengthen regulation and expand pension coverage to sustain the sector’s growing asset base.
Takor, who is also the Vice President, Human Rights Committee, Nigerian Bar Association (NBA), Epe Branch, made the call in an interview with the News Agency of Nigeria (NAN) on Saturday in Lagos.
The Director-General of the National Pension Commission (PenCom) during a recent State House briefing in Abuja said that pension assets under Nigeria’s Contributory Pension Scheme (CPS) had grown by 51 per cent over the past two years, rising from N20.79 trillion in July 2024 to N31.48 trillion as of July 2026.
by Pension Commission that pension assets rose to N31.48 trillion, representing about 51 per cent growth over the past two years.
According to him, the industry’s long-term sustainability should be anchored on real wealth creation rather than inflation-driven increases in asset values.
While describing the growth as commendable, Takor said much of the increase reflected inflation, exchange rate depreciation, higher interest rates and valuation gains on fixed-income investments, rather than fresh pension contributions.
He said sustaining the momentum would require Pension Fund Administrators (PFAs) to gradually diversify investments beyond government securities into infrastructure, corporate bonds, housing finance, private equity, green finance and other productive sectors of the economy.
“Such diversification must be supported by stronger governance, portfolio stress testing, cybersecurity, improved disclosure standards and prudent investment controls,” he said.
Takor also advocated operational improvements, including faster remittance of pension contributions, digital account management and enhanced customer service to boost public confidence in the Contributory Pension Scheme (CPS).
He projected that pension assets could rise to between N40 trillion and N50 trillion over the next three to five years if backed by consistent pension contributions and sound investment strategies.
The legal expert identified the informal sector, which accounts for more than 80 per cent of Nigeria’s workforce, as the industry’s largest untapped growth opportunity.
He urged the government and regulators to broaden pension coverage through simplified mobile registration, flexible contribution options, targeted incentives and partnerships with cooperatives and financial institutions.
Takor also called for improved financial literacy, digital innovation and public education in local languages to encourage wider participation in the Personal Pension Plan.
He further urged regulators to intensify enforcement of pension remittances while promoting macroeconomic stability and deeper capital markets to expand investment opportunities.
According to him, the pension industry remains one of the country’s most successful financial sector reforms and, with sustained reforms, can evolve into one of Africa’s largest sources of long-term institutional capital for retirement security and national economic development. #Pension Assets Can Hit N50trn with Wider Investment, Coverage – Expert# Pension Assets: 8,408 RSA Holders Access N39.86bn for Mortgage Equity in Q1
