Nigeria: Going Beyond N9tr Asset With Pencom’s Micro-Pension Plan
A significant growth in the pension industry’s asset size beyond the current value of N9.03 trillion is a new target. But it is riding on the expected success from the extension of the Contributory Pension Scheme (CPS) to the informal sector, while the flexibility of the operation is one of the incentives to encourage participation.
The National Pension Commission (PenCom) would drive this new target with Micro Pension Plan (MPP), which allows the informal sector contributors under the CPS to withdraw about 40 per cent of their contributions in their respective Retirement Savings Accounts.
In the first instance, the MPP policy is an indication of PenCom’s intention and commitment in attracting more investible funds into the CPS pool, as well as the overall economy.
Financial analysts have severally said that Nigeria might need to tilt towards an informal driven economy to create more employment and significantly reduce poverty.
The growth the nation’s economy lost steam to 2.01 per cent in the first quarter of 2019, from 2.38 per cent in the fourth quarter of 2018.
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