The Pension Reform Act 2004 (PRA 2004) introduced safeguards to the Contributory Pension Scheme (CPS) to ensure the funds contributed are not misappropriated by any operator while the PRA 2014 introduced more measures in the form of sanctions for non-compliance. The safeguards further ensured preservation and safe returns on pension investments by setting quantitative limits for allowable asset classes within the single fund portfolio. Subsequently, the single fund has made way for the recently introduced multi-fund structure to accommodate contributor risk and return appetite.

With a recent departure from recession and the country recording 2 consecutive growths in quarter 2 (0.72%) and quarter 3 (1.4%) of 2017, the pension industry should be poised for some rewarding times ahead. However, growth in any form comes with its complications, opportunities or threats from risks in the pension industry, that requires the right set of information and preparedness. As the industry continues to grow and scale their activities, operators will continue to interact with triggers of inherent and evolving risk some of which are on a global scale in a pension landscape one can describe as a financial mine field.

The Supporting Pillar of the Nigerian Pension Industry