Nigeria grows pension assets to N10.79trn

Nigeria’s total pension fund assets rose to N10.79 trillion in May 2020, up from N10.577 trillion recorded the previous month.

Of the N10.79 trillion, 68.8 percent (N7.2 trillion) was invested in Federal Government’s securities while N17 billion was invested in Private Equity Fund, according to the monthly Summary of Pension Fund Assets published on the National Pension Commission website.

Other major investments include Local Money Market with N1.58 trillion investments and Corporate Debt Securities with N758 billion investments.

The number of Retirement Savings Account (RSA) holders grew to 9,016,324.

A breakdown of the report shows that of the N7.2 trillion invested in Federal Government securities, a total of N1.11 trillion went into Treasury Bills, N1.1 billion was invested in Agency Bond (NMRC & FMBN), N84 billion in Sukuk Bonds, and Green Bonds at N14 billion, while State Government securities stood at N154 billion.

A further breakdown of the report showed that the pension fund which has been reclassified into the Multi-Fund structure – Fund I, Fund II, Fund III, Fund IV, and Fund V – stood at N25 billion, N4.67 trillion, N2 trillion, N582.2 billion and N24.8 million, respectively.

The Closed Pension Fund Administrators Fund (CPFAs) stood at N1.31 trillion and Existing Schemes (ES) at N1.13 trillion.

Notably, under the commission’s investment guideline on allowable instruments, pension fund assets are only allowed to be invested in Real Estate Investment Trusts (REITs) registered by Securities and Exchange Commission (SEC); Private Equity Funds registered with SEC; and Infrastructure Funds registered with SEC.

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