Nigeria. Workers withdraw N2.56 billion in 25% early pension withdrawal
This is in line with the provisions of the Pension Reforms Act 2014, which allows pension fund contributors to withdraw 25% of their contributions if they lose their jobs and have not found any in 4 months.
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This was confirmed by the Pension Commission in its second quarter report published on its website. According to the data, about 4,688 Retirement Savings Account (RSA) holders were disengaged from work but unable to secure another job within 4 months of disengagement during the second quarter.
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The payment was made to former employees in the Public and Private sectors. The number of private-sector RSA holders was a whopping 4,263. A total of N4.31 billion was approved for payment to 8,221 RSA holders in the first quarter.
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The Pension Commission also reports that a total of 10,673 RSA holders were paid N5.28 billion for the same reasons in the second quarter of 2020.
Nigerians have suffered massive job losses due to a combination of an economic downturn and the Covid-19 pandemic. The economy has remained under severe pressure since 2019 when the world started experiencing declining oil prices.
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