2021 Nigerian Pension Industry Report & Survey

Overview of the Report

In 2020, the global total pension assets rose by 11% to over $52.5 trillion despite the COVID-19 pandemic which affected several economic activities and caused job losses.

The number of enrolees on the Nigerian Pension Scheme rose to 9.2 million in 2020, representing a 4.5% increase over the 8.8 million enrolees recorded in the prior year. In the same vein, the industry’s assets stood at ₦12.3 trillion (or $32.3 billion) and reflected a 20.6% growth over the ₦10.2 trillion reported at the end of 2019 and an 18.3% compound annual growth rate over the last five years. Similar to other developed nations, an average of 73.4% of growth was attributable to investment returns earned on managed assets with the balance of 26.6% represented movements in net annual contributions over the last five years.

In November 2020, the National Pension Commission (PenCom) introduced the transfer window, which allows pension contributors switch PFAs at most once a year. Between November 2020 – when the transfer window was opened – and June 2021, a total of 25,645 RSA holders with pension assets over ₦102.5 billion were reported to have changed their Pension Fund Administrators (PFAs).

Agusto & Co conducted a Pension Survey to understand major factors that influence the decisions of Retirement Savings Account (RSA) holders in choosing a Pension Fund Administrator (PFA). The survey also highlights the key expectations of the retirement saving account holders from the PFAs and key factors that drive an enrolee’s decision to switch PFAs. We hypothetically deduced the likely net gainers and net losers from the transfer window process in the near term. The survey also explores the Micro-Pension Scheme, which is designed for the informal sector and the self-employed, gathering information on the perception of the Scheme by existing and potential enrolees while highlighting reasons for the low participation on the scheme and the expectations of the target market. Furthermore, Agusto & Co’s 2021 survey enables us evaluate the possible post COVID-19 factors that may have impacted consumer behaviour.

  • An overview of the Global Pension Industry with key emerging trends
  • A description and detailed analysis of the structure and composition of the Nigerian Pension Industry
  • Insights on recent developments and Industry trends
  • An overview of the pension transfer window, with analysis of the pros and cons as well as recommendations on how to optimize the transfer process
  • Key competitive tools pertinent to the success of Pension Fund Administrators in Nigeria.
  • Assessment of fund performance (I – IV) and financial condition of the Industry
  • An overview of the key regulators and regulations guiding the Industry.
  • An analysis of the Industry’s SWOT
  • An Agusto & Co risk rating and outlook for the Industry