Pension assets soar to N9.81trn, as FGN securities gulp N6.91trn

Mrs. Aisha Dahir-Umar

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Chuks Udo Okonta

The pension assets has soared to N9.81 trillion as at the end of October 2019, the National Pension Commission (PenCom) has said.

According to PenCom, the fund assets gained N23 billion between September and October this year, even as N6.91 trillion of the assets was invested in Federal Government of Nigeria securities.

PenCom in its monthly summary of pension fund assets, noted that pension fund operators invested N4.58 trillion amounting to 46.66 per cent in FGN Bonds; N2.23 trillion in Treasury Bills (22.82 per cent); N5.40 billion in Agency Bonds (NMRC & FMBN), (0.06 per cent); N71.13 billion in Sukku (0.72 per cent) and N15.85 billion in Green bonds, (0.16 per cent)

PenCom noted that in line the the Multi-fund structure, Retirement Saving Account (RSA) Fund 1, N20.77 billion was invested; RSA Fund 11, N4.26 trillion; RSA Fund 111, N2.43 trillion and RSA Fund IV, N778.03 billion.

It stated that N4.75.68 billion, which is 4.85 per cent of the funds, was invested in domestic ordinary shares; while N66.98 billion, amounting to 0.68 per cent in foreign ordinary shares.

The pension industry regulator maintained that pension operators invested N127.21 billion (1.30 per cent) in State Government’s Securities; Corporate bonds got N308.44 billion (6.08 per cent); Corporate Infrastructure bonds, received N12.26 billion, (0.13 per cent); Corporate Green bonds, N29.99 billion(0.31 per cent) Supra-National Bonds got N4.07 billion (0.04 per cent); local money market, N1.15 trillion, (11.73 per cent) commercial papers, N97.85 billion (1.00 per cent); Banks, N1.05 trillion (10.73 per cent).

Others are, Reits, N11.87 billion, (0.12 per cent) Foreign Money Market Securities, N4.92 billion, (0.05 per cent); private equity fund, N32.57 billion, (0.33 per cent), Real Estate Properties, N243.59 billion, (2.48 per cent); infrastructure funds, N37.59 billion, (0.35 per cent) and cash & other assets, N95.31 billion, (0.97 per cent).

The Acting Director-General, PenCom, Mrs. Aisha Dahir-Umar said the implementation of the Contributory Pension Scheme (CPS) has greatly impacted the economy, stressing that the major visible areas of this impact are the economic and social spheres and that the pension assets, is slowly but surely changing Nigeria’s financial landscape and by extension, the course and pace of our socio-economic development.

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