E-Financial
Pension Funds Recorded Significant Growth in 2022

The sound regulation and supervision of the Contributory Pension Scheme (CPS) in Nigeria by the National Pension Commission (PenCom) has yielded positive results, as evidenced by significant growth in pension assets. Pension assets increased by N1.56 trillion in 2022 to stand at N14.99 trillion as of 31 December 2022. In 2021, pension assets increased by N1.12 trillion to end the year at N13.43 trillion.
PenCom oversees Pension Fund Administrators (PFAs) to ensure that employees’ pension funds are managed professionally, and their benefits are guaranteed. Under the CPS, pension assets have witnessed growth through pension contributions and investment returns.
In terms of pension contributions, the CPS, established by the Pension Reform Act (PRA) 2014, is an arrangement where both the employer and the employee contribute a portion of an employee’s monthly emolument towards the payment of the employee’s pension at retirement.
The PRA 2014 provides a minimum contribution rate of 18 percent of the employee’s monthly emoluments comprising 10 percent by the employer and 8 percent by the employee. An employee may also decide to add to his contribution by voluntarily making additional contributions through his employer.
PFAs invest pension contributions on behalf of the employees. In 2022, the CPS recorded 333,002 new contributors, bringing the total CPS membership to 9.86 million. Pension contributions from the new RSA holders contributed to the overall growth in pension assets in the year.
For investment returns, PFAs invest pension contributions in a diversified portfolio of assets, including government bonds, stocks, real estate, and other asset classes such as private equity funds. The returns generated from investments in the above assets contribute to the growth of pension funds.
Consequently, workers participating in the CPS are assured of adequate funds to cater for their pension at retirement. Section 85(1) of the PRA 2014 states that “All Contributions made under this Act shall be invested by the Pension Fund Administrator with the objectives of safety and maintenance of fair returns on the amount invested”.
Furthermore, section 85(2) states, “Pension funds and assets shall only be invested in accordance with regulations and guidelines issued by the Commission, from time to time”.
It is instructive to note that the returns on all pension fund investments are apportioned directly to the RSAs of pension contributors.
Consequently, PFAs must indicate clearly in the RSA Statement of Accounts the total monthly pension contributions from the inception of the account and the returns on investment accrued to the contributor during the reporting period.
In addition, to ensure transparency, PenCom requires PFAs to publish on their websites the daily value of an accounting unit for the RSA Funds and disclose the three-year rolling average rates of returns on pension funds.
Meanwhile, a vital benefit of the CPS is that the investment returns generated from pension contributions are compounded over the years, thus resulting in increased RSA balances that avail the contributor of financial security during retirement.
Indeed, due to the sound investment regulatory framework established by PenCom, returns on investment have been good over time, such that it contributes a significant proportion of the RSA balances of contributors.
Accordingly, the CPS provides an opportunity to the contributor for higher retirement income, unlike the Defined Benefits Scheme, where retirement benefit payments are fixed upfront.
Due to the apparent benefits that pension contributors get from the investments of their pension savings, employees need to monitor their employers and ensure prompt remittance of their monthly pension contributions.
Employers are obliged by law to deduct and remit pension contributions into their employees’ RSAs not later than seven working days from the date salaries are paid. Consequently, employers that delay remitting pension contributions will eventually pay the delayed contribution plus a penalty of not less than 2 percent of the total unpaid contributions monthly.
Overall, the CPS provide employees with a stable source of income during their retirement through a combination of contributions and investment returns. PenCom is committed to the effective regulation of the pension industry in Nigeria to ensure that employees under the CPS receive their retirement benefits as and when due.
E-Financial
Zenith Banks Leads as 8 Banks Suffer N156Bn Impairment Charges

Eight leading Nigerian banks collectively set aside N156 billion as impairment charges on their credit and financial assets, marking a significant financial impact amidst a challenging economic environment, in the opening quarter of 2025.
Known commonly as loan losses or credit impairments, these charges highlight the banks’ defensive measures against risks arising from inflation, naira depreciation, and tightened liquidity affecting consumers and businesses alike.
The level of impairment varied considerably across institutions, reflecting divergent risk appetites and credit management practices.
Zenith Bank led with the highest provision of N49.38 billion, an 11.8 percent reduction from the previous year’s N55.97 billion.
This decline may suggest enhanced asset quality or more rigorous loan recovery tactics.
Broken down, loans and advances contributed N35.95 billion to impairments, while investment securities and treasury bills added N7.1 billion and N2.16 billion respectively.
Despite heavy provisioning, Zenith recorded a notable 20.7 percent increase in post-tax profit, soaring from N258.34 billion to N311.83 billion.
Similar trends emerged at First HoldCo, which posted N37.25 billion in impairment (down 11.2 percent), driven mainly by loans and advances provisions of N41.23 billion.
Offsetting this were write-offs and reversals that mitigated losses.
First HoldCo’s profit, however, fell to N171.10 billion from N208.11 billion.
Access Holdings and Guaranty Trust Holding Company also demonstrated reduced impairment charges, indicating stronger credit monitoring.
Access’s net provision dropped 4.5 percent to N21.77 billion, while Guaranty Trust’s impairment stabilized near last year’s N13.42 billion figure.
Yet, Guaranty Trust’s profit plunged 43.6 percent to N258.03 billion, a striking contrast to other banks’ profit growth.
On the other hand, United Bank for Africa (UBA) faced a staggering 332.2 percent surge in impairment, from N3.28 billion to N14.18 billion—pointing to amplified credit risks possibly driven by external economic pressures.
Nonetheless, UBA recorded a 33.1 percent profit uptick to N189.84 billion.
FCMB’s impairment charge fell notably by nearly 60 percent to N9.52 billion, aided by significant recoveries of previously written-off loans, boosting its profit to N32.23 billion.
Meanwhile, Fidelity Bank and Wema Bank posted sharp rises in impairment—285.8 percent and 64.7 percent increases respectively—reflecting heightened write-downs that underscore growing risk exposure amidst portfolio expansions.
Overall, while the cumulative impairment charge diminished by 5.2 percent compared to Q1 2024, individual bank results were mixed, embodying the varied strategies and external pressures in Nigeria’s banking sector.
E-Financial
SEC Flags FF Tiffany as Ponzi Scheme

Securities and Exchange Commission (SEC) has revealed plans to commence investigation into the activities of an entity operating under FF Tiffany, allegedly running a fraudulent investment scheme that has defrauded citizens.
A statement by SEC on Tuesday in Abuja said preliminary information revealed that the scheme, which promised investors unusually high and unrealistic returns, had resulted in the loss of several billions of naira.
The SEC said it viewed the activity as a threat to investor confidence and the overall integrity of the financial system.
The commission assured the public that it was working closely with law enforcement agencies and other relevant bodies to bring everyone involved in the unlawful operation to justice.
According to SEC, those found culpable will be prosecuted in accordance with Investment and Securities Act (ISA) and regulatory provisions.
SEC reiterated its earlier warnings to the general public to desist from engaging in Ponzi or unregistered investment schemes that promised guaranteed or exaggerated returns.
”These schemes are not registered with the SEC and do not offer investor protection under the law.
“The commission is currently investigating 79 schemes and will make a statement on its findings at the conclusion of the investigation,” the SEC said.
The commission encouraged investors to conduct due diligence and verify the registration status of any investment firm or product by visiting the SEC website or contacting the commission directly through official channels.
SEC said it remained committed to its mandate of protecting investors, ensuring fair practices, and maintaining confidence in Nigeria’s capital market.
E-Financial
AccionMonie App to Empower Low-Income Households

Accion Microfinance Bank has unveiled AccionMonie, a next-generation digital financial services platform aimed at empowering individuals, micro, small, and medium enterprises (MSMEs), as well as low-income households across Nigeria.
Speaking at the official launch in Abuja, Chief Executive Officer of Accion MfB, Taiwo Joda, described the introduction of AccionMonie as a significant milestone and a testament to the bank’s culture of innovation, designed to meet the evolving needs of its customers.
“At Accion Microfinance Bank, we believe in the potential of every MSME to drive inclusive economic growth. That is why we are committed to empowering them with the financial support they need to grow, innovate, and make a lasting impact in their communities and beyond,” Joda said.
He added that the app provides instant access to essential services including loans, savings, and other forms of financial support.
According to Joda, AccionMonie is a strategic component of the bank’s “Always There to Lend You a Hand” campaign, which underscores its commitment to small business development and the economic upliftment of underserved households. The campaign positions Accion MfB as not only a financial institution but also a trusted partner in its customers’ journey to prosperity.
Highlighting the economic role of MSMEs in Nigeria, he noted that with an estimated 37 million MSMEs, the sector accounts for 86% of employment and contributes 48% to Nigeria’s Gross Domestic Product (GDP). However, these enterprises continue to face major challenges such as limited access to finance, inadequate infrastructure, and an unfavourable business environment.
Also speaking at the launch, the bank’s Chief Commercial Officer, Stephen Olalere, said the combination of AccionMonie and the bank’s expansive network of over 74 branches across 12 states will help bridge the gap in financial service delivery to small businesses.
“The platform’s user-friendly features are designed to simplify payments and offer vital support to businesses and individuals alike,” he said.
Paul Ehiagbonare, Chief Digital Officer of the bank, described the launch as a bold step toward digital leadership and financial empowerment.
“For us, AccionMonie reflects customer empowerment through digital tools and technologies. It offers a range of customer-focused features designed to promote financial inclusion,” he said.
One of its standout features is Save2Loan, which allows users to save between ₦50,000 and ₦250,000 over a 90-day period and become eligible for a loan worth twice their saved amount. This, Ehiagbonare explained, will help promote a savings culture while enhancing credit access.
In addition, customers can conveniently fund their AccionMonie accounts using any debit card, eliminating the need for physical visits or long queues in banking halls.
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