Nigeria’s Total Pension Fund Up By N1.68 trillion, Gov’t Securities Take Large Chunk

The total pension fund assets increased by 12.28 per cent according to the National Pension Commission (PenCom). This represents N1.68 trillion in monetary form.

According to unaudited data obtained from the National Pension Commission, the total pension fund assets closed at N15.45 trillion in February 2023.

This is 12.28 per cent year-on-year growth when compared to the N13.76 trillion total pension fund assets reported in February of the previous year.

Recall that at the end of December 2022, the total pension fund assets were N14.99 trillion. At the time, the Director General of PenCom, Aisha Dahir-Umar, said: “During the reporting period, the Commission stepped up its efforts to ensure sustainable investment by pension funds in alternative asset classes and structured infrastructure projects that meet the strict requirements of the Pension Fund Investments Regulation. 

“We continued our efforts to ensure further diversification of investments in pension fund portfolio assets. While rising inflation continues to challenge the Nigerian economy, it should be noted that efforts are being made to ensure average annual pension fund returns for RSA and legacy funds exceed headline inflation.” 

Meanwhile, the unaudited report covering February 2023 stated that federal government securities such as bonds and treasury bills attracted N9.98 trillion in investment in the pension fund. 

This means that government securities accounted for 64.4 per cent of the total pension funds, while corporate debt securities under corporate bonds; corporate infrastructure bonds; corporate green bonds, and supranational bonds, as well as domestic and foreign ordinary shares and real estate accounted for the remaining. 

Prime Business Africa previously reported that PenCom penalised 25 employers for defaulting on pension remittance for the fourth quarter of 2022, with 34 companies recommended for legal action after failing to meet their obligations to the commission.

PenCom fined the 25 firms N666.03 million. They also paid a principal contribution of N187.37 million, taking the total amount to N853.4 million.

Fakoyejo Olalekan

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