Stanbic has the best pensions. RSA Growth and Access are aggressively falling behind due to increased competition
The second quarter of 2023 saw a spike in new registrations for Retirement Savings Accounts (RSA) in Nigeria, furthering the steady rise seen in Q1
This is based on the National Pension Report for the second quarter that industry watchdog PENCOM released. According to the most recent statistics, the youth participation rate is 82%, underscoring the younger generation's increased participation in the country's Contributory Pension Scheme (CPS). 63,693 new Retirement Savings Accounts (RSAs) were registered, according to the Q2 2023 report. Of these new accounts, 52,079, or 82%, belonged to people under the age of 40. For contrast, there were 83,654 new RSAs for the first quarter of the year, which ended on March 31, 2023. Eighty four percent of these, or 70,407 account holders, were under the age of forty, and 46 percent were even younger—under the age of thirty. The battle for RSA members Stanbic IBTC Pension Managers took the lead with 19,076 new accounts, a 30% rise over the prior quarter, according to a thorough study of RSA registrations.With a 28.9% market share in the first quarter—23,586 new members—the company continued to hold the top spot. By the conclusion of the second quarter of 2023, Stanbic IBTC Pension Managers had accumulated over 2,034,226 RSA members, or 20% of Nigeria's total of 10 million RSA members. Access Pensions and GT Pensions, two recent competitors in the business, respectively added 7,215 and 1,078 new RSA members in the second quarter of the year, continuing their strong growth trajectory. In contrast, Access Pensions and GT Pensions respectively added 7,747 and 879 RSA members in the first quarter. Over the last six months, Access Pensions, which just bought Sigma Pensions, has gained nearly 15,000 new RSA members.With 1,072,121 members, the organization firmly establishes itself as the second-largest pension fund. ARM Pensions now has 902,222 members, moving up from second place in December 2022.The final two pension plans in the top five, Trust Fund Pensions and Premium Pensions, have 805,295 and 783,196 RSA members, respectively. The top five pension plans collectively represent 5,596,100 RSA members, or 55% of the market. Sixth place FCMB has 740,798 members. With roughly 23,433 members, ARM Pensions led the field in micro-pensions, followed by Stanbic IBTC Pensions with 20,493 members. Stanbic IBTC Pension Managers Limited was the top collector of pension payments made under the micro-pension scheme in Q2 2023, taking in N23,649,238.59. With N10,119,379.83 and N6,260,200.00, respectively, ARM Pension Managers (PFA) Limited and Fidelity Pension Managers Limited came in second and third. The largest portion of the total contributions for the year to date came from Stanbic IBTC Pension Managers Limited, ARM Pension Managers (PFA) Limited, and Fidelity Pension Managers Limited. As of June 30, 2023, these companies had collected N208,058,754.26, N68,097,754.47, and N47,010,387.14 in that order, accounting for 44.36%, 14.52%, and 10.02 percent of the total pension contributions received. Economic Update Individual RSAs received contributions of 225.49 billion in Q1, of which the public sector contributed 55.3% and the private sector contributed 44.7%. The total pension contributions increased slightly to 263.91 billion in Q2 despite similar contributions by industry. Additionally, there were a lot of RSA transfer activity during the quarter. A total of 34,283 RSAs with related pension funds worth a combined 131.79 billion yen were transferred in January 2023 alone. This demonstrates a dynamically changing environment inside Nigeria's pension system, which is said to be caused by an increase in contributors looking for better fund management and returns. The total assets of the pension funds increased by 16.76 trillion from 15.58 trillion in Q1 2023, representing a growth rate of 7.57%. Federal Government Securities, which made up 64.78% of total assets in Q2 and slightly more than the 63.14% in Q1, continued to rule the investment world.
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