2024 Pension Industry Report

Overview of the Report

Global pension assets grew by 11.14% to $55.68 trillion in 2023, driven by improved market conditions and stronger capital market performance. This growth benefited pension funds through increased allocations to bonds and other higher-yielding instruments. The pension industry remains a key contributor to global assets under management (AuM), accounting for 35% of managed assets.

In Nigeria, total pension assets rose to ₦18.36 trillion in 2023, representing a 22.34% increase from the ₦14.99 trillion reported at the end of the prior year. The growth in pension assets was largely driven by the mandatory nature of pension contributions and positive investment returns during the year. The Industry recorded over three hundred thousand new contributors in 2023, bringing the total CPS membership to 10.1 million RSA enrolees – a 3% increase from the previous year’s count of 9.8 million. The upswing in enrolees was primarily due to improved compliance levels in both the private and public sectors and increased marketing efforts by Pension Fund Administrators (PFAs).

As at the end of 2023, the number of licensed PFAs decreased from 19 to 18 following the acquisition of ARM Pension Managers by Access Pensions. These 18 PFAs held over ₦16.6 trillion in assets under management, representing a 39.5% increase from the ₦11.9 trillion reported by the 19 PFAs at the end of 2022. The Industry maintains an oligopolistic nature, with the top five players controlling over 72% of pension assets while accounting for over 59% of total enrolees. Stanbic IBTC continues to lead the Industry both in terms of AuM, accounting for an estimated 37.4% (₦6.2 trillion) of the total, and enrolee base with a 20.4% (c. 2.1 million) share of total registered pension contributors in 2023

The 2023 Pension Industry report captures the following:

  • An overview of the Global Pension Industry with key emerging trends
  • An analysis of the Nigerian macroeconomic environment and the impact on the Pension Industry
  • A comprehensive description and detailed analysis of the structure and composition of the Nigerian Pension Industry
  • Insights on recent developments and Industry trends
  • Key competitive factors pertinent to the success of Pension Fund Administrators in Nigeria.
  • An overview of the key regulators and regulations guiding the Industry
  • An overview of the Industry’s SWOT analysis
  • Assessment of fund performance (I – IV) and financial condition of the Industry
  • An Agusto & Co risk rating and outlook for the Industry