PENSION INFLOWS RISE 42% DESPITE DORMANT ACCOUNTS

Nigeria’s pension sector recorded a 42 per cent increase in pension inflows despite the continued existence of a significant number of inactive pension accounts.

The increase indicates stronger contributions into the pension system, even as some contributors remain inactive or have stopped making regular contributions.

Industry stakeholders said the growth in inflows reflects continued participation in the Contributory Pension Scheme and the increasing number of workers and employers making pension contributions.

However, concerns remain over dormant accounts, particularly where contributors have changed jobs, moved between sectors or stopped making contributions without updating their pension records.

The development has renewed calls for greater efforts to reconnect inactive contributors with their pension accounts and ensure that eligible workers continue to benefit from the scheme.

Pension administrators have continued to encourage contributors to regularly monitor their accounts and update their personal and employment information where necessary.

The growth in pension inflows also highlights the increasing pool of funds being accumulated under Nigeria’s pension system, which plays an important role in long-term savings and investment.

Stakeholders have stressed the need for stronger awareness among workers, particularly those in the informal sector, to encourage broader participation in the pension scheme.

Despite the rise in contributions, industry observers said addressing dormant accounts remains important to ensure that pension assets are properly linked to their beneficiaries and that contributors can access their benefits when due.