The nation’s pension assets have hit N14.06 trillion at the end of April 2022, according to the latest monthly figures of performance of the industry released by the National Pension Commission (PenCom).
The figure rose from N13.88 trillion recorded in the same period in March 2022, indicating 181. 34 billion increase month-on-month, as against N113.75 billion increase in March from February performance.
The number of registered contributors also grew to 9.64 million (9,648,213) in April, against million 9.30 million in March and 9.27 million in February 2022.
Top places where pension funds were invested in April 2022, according to Pension Nigeria, include FG Securities N8.56 trillion, equal to 60.90 percent, while the local money market was N2.225 trillion, equal 16.04 percent.
Others are Corporate Debt Securities, which accounted for N1.18 trillion, equal to 8.36 percent; domestic ordinary shares N999 billion, equal to 7.11 percent; cash and other assets N365 billion, equal to 2.60 percent.
Real estate properties accounted for 236 billion, equal to 1.68 percent, while State Government Securities accounted for N172 billion, equal to 1.22 percent
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In March, N13.88 trillion was recorded, and it comprised of N9.81 trillion in RSA’ Active’ Funds (RSA Funds I, II, III and V); and N1.10 trillion in RSA Retiree Fund (Fund IV);
Others are N1.54 trillion in CPFAs; N1.42 trillion in Approved Existing Schemes, while Fund VI Active and Retiree Fund amounted to N23.16 billion.
Pension Fund Assets were mainly invested in Federal Government Securities (FGN), accounting for 61.26 percent of total assets.
The composition of investments in FGN Securities was FGN Bonds: 92.20 percent; Treasury Bills: 3.45 percent; and Agency Bonds, Sukuk and Green Bonds accounting for 1.29 percent.
Olumide Oyetan, managing director/CEO, Stanbic IBTC Pension Managers had implored employers to put in place a robust retirement benefits scheme for their employees.
He said having a robust retirement benefits scheme in an organisation, demonstrates the employer’s commitment to the future of its employees and this, in turn, improves employees’ loyalty and productivity.
On the level of implementation of the Contributory Pension scheme, PenCom said as at the first quarter of 2022, 25 States of the Federation had enacted pension laws on the CPS, while two states were at the bill stage, four have adopted the Contributory Defined Benefits Scheme (CDBS).
It noted, however, that it has continued to engage them through sensitisation workshops and capacity-building programs.
It held stakeholders meeting with representatives of the Ekiti State Pension Commission (ESPC), which discussed the challenges being faced in the implementation of the CPS in the state; made presentations at the pension management retreat organised by the FCT Area Councils Staff Pension Board (FCTACSPB) in Akwanga, Nasarawa State.
The presentations were on the CPS implementation challenges with emphasis on uncredited contributions.
The commission also engaged the government of Rivers State, expressing concern over the state’s inability to take steps to fully implement the CPS in the state, in view of the impending commencement of retirement of employees of the state under the CPS from June 1, 2022.
The commission also engaged the government of Ogun State on the persistent non-remittance of pension contributions into its employees’ RSAs, in view of the fact that the employees will start retiring under the CPS from July 1, 2025.
