The pension industry despite the growth trajectory has not run out of challenges and the National Pension Commission (PenCom) Q4 report of 2024 published June 18, 2025 admits. “Despite recorded progress, the pension industry faced notable risks in Q4 2024. Rising inflation (33.5%) eroded asset values and retirees purchasing power, while continued naira depreciation undermined foreign investment returns and increased operational costs.”
Further outlining macroeconomic risks and sectoral challenges, the report noted that employer default persisted, “threatening scheme stability and necessitating stronger enforcement.”
Moreover, it was noted that the uneven implementation of the Contributory Pension Scheme (CPS) across States continues to limit nationwide coverage and inclusivity.
To strengthen the pension system beginning in Q1 2025, the Commission is addressing the emerging risks by intensifying enforcement and recovery efforts, expanding the Micro Pension Plan through increased awareness and simplified enrolment, and enhancing data integrity and transparency.
Going forward the Commission intends to provide targeted support to States implementing the CPS, while offering supervisory guidance to PFAs in adjusting investment strategies to mitigate inflation and currency risks.
Asserting its grip on underlining challenges PenCom stated that, “These efforts reinforce the Commission’s unwavering commitment to protecting pension assets, broadening coverage, and fostering a resilient, transparent, and inclusive pension system.”
