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38.04% of pension accounts in Nigeria are empty

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Operators invest N250bn pension funds in real estate

The National Pension Commission has revealed that of the 9.2 million retirement savings account in the country, 38 percent which is about 3.5 million were empty as at the end of 2020.

PenCom disclosed this in its latest fourth quarter 2020 report.

According to PenCom a majority of these unfunded accounts belong to employees of state governments and private sector organisations.

Giving an idea of the defaulting states, PenCom noted that workers in Osun, Anambra and their local governments, Delta State and its Local government, FCT Area Council, Ekiti, Ondo, and Benue are still waiting for the backlog of their pension as at December 2020.

Read also: PenCom says pension assets rose by N184.68bn in Q3 of 2020

PENCOM also disclosed that it carried out an off-site review of the implementation of the CPS in seven (7) States, namely; Ekiti, Delta, Osun, Lagos, Ondo, Edo and Kebbi and observed gaps in the monthly pension remittances to the RSAs of employees.

“We observed delay in the payment of accrued rights to retirees. There were also issues of inaccurate data on schedules accompanying pension remittances and other reconciliation issues,” PenCom said.

The implications of all these is that many workers are set to retire with nothing to fall back on in their old age.

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