The National Pension Commission (PenCom) has authorised the disbursement of N14.2 billion to 8,651 Nigerians who faced temporary job loss in the first quarter of 2024, reflecting a proactive measure to alleviate financial strains amidst economic challenges.
In the latest report from PenCom for the first quarter of 2024, it was disclosed that a total of 8,702 Retirement Savings Account (RSA) holders submitted requests to access 25 per cent of their RSA balances due to temporary unemployment. Out of these, 8,651 requests were approved, while 51 were rejected because the applicants were over 50 years old, surpassing the age limit for withdrawal eligibility.
The disbursements were predominantly directed towards individuals under the age of 50, with 8,167 applicants from the private sector and 484 from the public sector benefiting from the financial relief. Each approved applicant received an average disbursement of approximately N1.64 million.
Since the inception of the pension scheme, PenCom has approved a cumulative total of N238.19 billion for 501,807 requests as of March 2024, marking a 6.34 per cent increase from the N223.99 billion recorded in December 2023. This rise underscores the growing reliance on pension funds as a critical financial safety net in times of economic uncertainty and widespread job losses.
The private sector accounted for the majority of disbursements, with 94.4 per cent of approvals in the first quarter of 2024 attributed to individuals employed in private enterprises. This dominance highlights the heightened vulnerability of private sector workers to economic downturns and layoffs.
Federal and state government employees also sought financial relief, with 269 and 215 approvals respectively in the first quarter of 2024. Since the inception of the pension scheme, federal government employees have accounted for 14,407 approvals, while state government employees have seen 9,159 approvals, indicating a consistent need for financial support across public sector entities.
The significant disbursement of N14.2 billion underscores PenCom’s pivotal role in providing critical financial assistance to a vast number of Nigerians grappling with temporary job loss. However, it also underscores the broader economic challenges facing the nation, including high unemployment rates, inflationary pressures, and economic instability. The ongoing disbursements highlight the imperative for sustained economic reforms and targeted interventions to enhance job creation and economic resilience across all sectors of the economy.
According to Section 7(2) of the Pension Reform Act 2014, RSA holders are entitled to withdraw up to 25% of their retirement savings upon voluntary retirement, disengagement, or termination of employment, provided they have been unemployed for at least four months.
The detailed breakdown of disbursements reflects PenCom’s commitment to transparency and accountability in managing pension funds and providing timely support to individuals navigating financial challenges due to job loss in Nigeria’s evolving economic landscape.
