The latest data from the Pension Commission (PenCom) reveals a remarkable increase in pension benefits for life annuitants, reaching a substantial N665.13 billion as of Q2 2023, with 111,708 applicants benefiting from this financial support.
Mr Oguche Agudah, the CEO of the Pension Fund Operators Association of Nigeria (PenOp), revealed during the Association’ s annual media parley with the Nigeria Association Of Insurance and Pension Editors (NAIPE) in Lagos on December 8, 2023, centered around the theme “At the dawn of 20 years of pension reform, what are the gains?”
Agudah highlighted that, by Q3 2022, life insurance companies providing this product had disbursed N595.22 billion to 102,696 applicants. Examining the twelve-year period from Q3 2011 as the base year, the data illustrates a noteworthy progression. In the base year, 331 applicants received N1.51 billion. Fast forward four years to Q3 2015, and 20,615 applicants were paid N101.96 billion, PenOp stressed.
Another four-year interval, Agudah pointed out specifically Q3 2019, which witnessed a substantial increase, with 71,214 applicants receiving N386.30 billion from participating life insurers.
According to him, this pattern underscores the consistent growth in the preference for life annuity offered by these insurers, highlighting a trend of increased involvement in providing pension benefits to retirees by various entities within the insurance sector. The disclosed figures showcase not only the financial support provided to retirees but also the evolving landscape of pension reforms over the past two decades, he added.