The distribution of N14.2 billion to 8,651 Nigerians who suffered temporary job loss in the first quarter of 2024 has been approved by the National Pension Commission (PenCom).
The entire amount disbursed, which averages about N1.64 million per person, shows the significant financial help given to these under-50 persons.
This action is a part of the efforts to lessen the financial hardships that people experience as a result of unemployment, offering much-needed respite in the midst of persistent economic troubles.
Breakdown of Disbursements
In light of a brief absence of work, 8,702 Retirement Savings Account (RSA) holders requested access to 25% of their RSA funds, according to the First-Quarter 2024 Report of PenCom.
Of these, 8,651 requests were granted, and 51 were denied on the grounds that the applicants were older than 50.
There were 484 public sector applications and 8,167 private sector applicants among the approved applicants.
The text of the PenCom report stated: “A total of 8,702 RSA holders requested to access 25% of their RSA balances due to temporary loss of employment. Out of that, 8,651 RSA holders’ requests were approved, while fifty-one (51) were rejected because their ages were above 50 years.”
“Out of the 8,651 applicants whose benefits were approved, 8,167 were from the private sector, while the remaining 484 were from the public sector. The sum of N14,203.04 million was approved for the 8,651 RSA holders under the age of 50 years.”
Since launch, N238.19 billion have been transferred
A total of N238.19 billion has been approved for 501,807 requests since the program’s founding through March 2024. The entire sum is a 6.34% increase from the N223.99 billion recorded in December 2023, suggesting an increasing reliance on pension funds as a safety net for the banking system.
Since the start, 518,850 requests have been made; 501,807 of those have been approved and 17,043 refused.
This acceptance percentage of over 97% demonstrates PenCom’s contribution to giving a significant amount of unemployed Nigerians vital financial support during lean times.
The total sum transferred shows the enormous financial strain placed on the nation’s pension fund system as well as the growing financial difficulties that people are facing.
Job loss is most prevalent in the private sector
With 8,167 approvals in Q1, the private sector continued to dominate, accounting for 94.4% of all requests submitted during that time.
This pattern supports the notion that job loss is more common in the private sector. A total of 478,241 approvals have come from the private sector since the pension scheme’s establishment, indicating the sector’s susceptibility to changes in the economy.
Even though it was less impacted, roughly 500 people in the public sector nonetheless needed financial assistance. In Q12024, there were 269 requests from federal employees and 215 from state employees of the government.
Federal government employees have approved 14,407 applications since the program’s inception, compared to 9,159 approvals by state government employees.
The research suggests that while job loss impacts all industries, it disproportionately affects people in the private sector.
Since the program’s launch, federal employees have received 14,407 approvals, compared to 9,159 approvals from state government employees.
