The Pension Fund Operators Association of Nigeria (PenOp) has revealed that a total of N208.86 billion was disbursed to approximately 475,230 individuals who faced job loss during the second quarter of 2023. This disclosure was made by Oguche Agudah, the Chief Executive Officer of PenOp, during a media session titled: ‘At the Dawn of 20 Years of Pension Reform, What are the Gains?’ in Abuja.
According to the presentation document provided by Agudah, in the third quarter of 2011, a sum of N3.86 billion was distributed among more than 27,169 Retirement Savings Accounts (RSA) holders under the Contributory Pension Scheme (CPS). However, by the second quarter of 2023, the number of RSA holders experiencing job loss had surged by 1,649.18 per cent, accompanied by a substantial 5,310.88 per cent increase in the disbursed amount.
Under Section 7(2) of the Pension Reform Act 2014, it is stipulated that an employee, upon voluntary retirement, disengagement, or termination of employment as outlined in Section 16(2) and (5) of the Act, may withdraw up to 25 per cent of the total amount credited to their retirement savings account. This withdrawal is permissible only after four months of retirement or cessation of employment, provided the individual does not secure alternative employment.
Agudah presented a comprehensive breakdown of the funds released to individuals who lost their jobs and were entitled to a 25 per cent withdrawal from their RSA. The figures indicate that by 2015, N32.50 billion had been paid to 125,395 RSA holders facing job loss, while by Q3 2019, the sum of N116.88 billion had been disbursed to 331,003 RSA holders. Furthermore, in Q3 2022, N182.2 billion was distributed to 443,720 RSA holders, and as of Q2 2023, a total of N208.86 billion had been paid to 475,230 unemployed Nigerians.
Agudah also addressed death benefits payments to next of kin, revealing that over N356 billion had been disbursed to more than 91,000 employee beneficiaries by Q2 2023. Additionally, regarding the 20 per cent equity contribution for mortgage, he mentioned that over N7.8 billion had been paid to more than 600 applicants during the same period. Furthermore, the association is actively engaging with the government to secure various incentives aimed at encouraging increased participation in Micro Pension Funds—a component of the CPS designed for self-employed Nigerians contributing towards their retirement.
