Nigeria’s pension industry has continued to record steady growth and resilience despite domestic and global economic challenges, emerging as one of the most stable segments of the nation’s financial system.
This was the consensus of stakeholders at the FCMB Pensions Limited 20th anniversary dinner and awards ceremony held in Abuja.
Participants at the event noted that more than two decades after the enactment of the Pension Reform Act of 2004, the industry has grown into a major pillar of long-term savings and investment, mobilising trillions of naira in assets while providing retirement security for millions of Nigerians.
As the industry expands, Pension Fund Administrators (PFAs), including FCMB Pensions, reaffirmed their commitment to driving financial inclusion, safeguarding contributors’ funds, and deploying long-term capital into critical sectors of the economy.
Strengthening the Naira
Speaking at the event, the Managing Director of FCMB Pensions, Mr Christopher Bajowa, said the company is leveraging the Personal Pension Plan (PPP) as the next phase of pension growth.
He, however, expressed concern over the instability of the naira, noting that currency depreciation poses challenges to long-term savings.
“How do you encourage people to save when the value of their savings is diminishing? A lot of work is ongoing, and the Federal Government is making efforts to strengthen the naira while creating opportunities to access foreign currencies to hedge against continued devaluation,” he said.
Reflecting on the industry’s early days, a pioneer Managing Director of FCMB Pensions, Mr Bello Maccido, recalled that the company began as a modest institution formed by retail investors following the Pension Reform Act of 2004.
“At the time, only 13 PFAs were licensed under the contributory pension scheme. By the time I left, we had registered about 187,000 Retirement Savings Accounts with assets of N72 billion,” he said.
“Today, the company’s growth to over N1 trillion in assets under management underscores the strength of its leadership and institutional framework.”
Also speaking, Mr James Ilori, Non-Executive Director of FCMB Pensions, representing the Board Chairman, Mr Ladi Balogun, said the company has recorded remarkable progress over the past two decades.
“Twenty years is a long journey. We are pleased with the progress so far and confident that the next five to ten years will bring even greater growth,” he said.
Olusola Akintonde