Fund managers park 60% of pension cash in FG debt

…as asset hits N17.7trn

Nigeria’s total pension assets managed by pension fund administrators (PFAs) rose to N17.67 trillion at the end of July from N16.11 trillion in May, according to data from the National Pension Commission (PenCom).

The number of registered contributors increased to 10,009 at the end of July.

Out of the total assets under management (AUM), the PFAs invested N11.03 trillion or 60.20 percent on Federal Government securities, with government bonds taking N10.57 trillion of the funds.

The PenCom monthly performance report of the PFAs also show that money market instruments gulped N1.58 trillion, while domestic ordinary shares got N1.27 trillion of the AUM.

The audited full-year financial results of the PFAs for 2022 shows that Stanbic IBTC Pension Managers led the table with AUM of N4.38 trillion, while ARM Pensions followed with N1.053 trillion.

Premium Pensions’ AUM at the end of 2022 was N860.43 billion; Access Pensions, N836.24 billion; NPF Pensions, N827 billion; and Trustfund Pensions, N702.55 billion.

On the bottom of the table is Radix Pensions with N6.69 billion, followed by Guaranty Trust Pensions, N30.23 billion; Norrenberger Pensions, N91.74 billion; and Veritas Glanvills Pensions, N118.78 billion.

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Kasim Garba Kurfi, managing director/CEO of APT Securities and Funds Limited, said the contribution of pension funds to the tune of over N16 trillion is pronounced in all phases of life.

He said many sectors of the economy benefit from excess funds looking for alternative ways to invest such as FGN Sukuk, Green bonds, and infrastructure bonds, among many others.

Kurfi said pension ensures that every worker receives his/her retirement benefit as and when due. “It ensures workers save in order to cater for future liability and old age, provide long-term finance for the real sector, and stimulate the development of the capital market.”

While condemning those agencies and institutions clamouring to exit the Contributory Pension Scheme, Kurfi enjoined the government at all levels to discourage such moves for the interest of the pensioners and the nation’s economy.

He said the contribution of insurance and pension sectors towards economic development can be seen, especially in driving the nation’s financial inclusion project.