Nigeria’s pension industry has every reason to celebrate. Barely two decades after the introduction of the Contributory Pension Scheme, retirement assets have climbed towards the N30 trillion mark, making the sector one of the most stable and successful components of the nation’s financial system. At a time when many sectors struggle with volatility and uncertainty, the pension industry has remained a model of discipline, transparency and sustained growth.
Beneath these figures lies a difficult truth. Nigeria’s pension sector remains significantly smaller, less diversified and less impactful on economic development than that of South Africa. The comparison should not be viewed as an indictment of Nigeria’s pension reforms, but rather as an opportunity to examine what works elsewhere and how the nation can improve its own system.
“A deeper capital market, stronger corporate governance standards and more bankable infrastructure projects would naturally encourage pension funds to diversify without compromising safety.”
South
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