The nation’s pension fund assets rose significantly from N11.09 trillion at the end of June 2020, to N11.35 trillion on August 31, gaining N260 billion in the process, LEADERSHIP can now reveal.
The huge gains, according to findings, was attributed to new pension contributions received, interest from fixed income securities and net realised on equities and mutual fund investments.
Media investigations showed that investment income was instrumental to the continuous growth in pension fund despite the fact that state governments are not paying the monthly pension contributions of their workers as and when due.
Of the N11.35trillion assets, it was learnt that N7.52 trillion,
translating to 66.27 per cent of the amount, was invested in federal government’s securities as Pension Fund Administrators (PFAs) continue to see this instrument as a safe and the best investment option.
To this end, a document which detailed the summary of pension fund assets on August 31, 2020 sourced from the National Pension Commission (PenCom) yesterday showed that FGN bonds got N6.39 trillion (56.28 per cent), treasury bills N1trillion (8.85 per cent), agency bond (NMRC & FMBN) N10.90 billion (0.10 per cent), Sukuk bonds N104.51billion (0.92 per cent) and green bonds N13.37 billion (0.12 per cent) of the pension assets.
Similarly, N544.72 billion, representing 4.80 per cent of the pension assets was invested in domestic ordinary shares while N79.16 billion (0.70 per cent) was invested by the PFAs in foreign ordinary shares.
PenCom, in the document, stressed that state government securities gulped N148.14 billion (1.31 per cent), corporate bonds N754.95billion (6.18 per cent); corporate infrastructure bonds, N16.84billion, (0.15 per cent); corporate green bonds, N37.10 billion (0.33 per cent), bank placement N1.64trillion (14.44 per cent), commercial papers N245.15 billion (2.16 per cent) and real estate properties N218.27 billion (1.92 per cent).
Other classes of assets include supra-national bonds N1.33 billion (0.01 per cent); open/close end funds, N18.43 billion, 0.16 per cent), mutual funds N29.76 billion (0.26 per cent), private equity fund N33.07 billion (0.29 per cent), infrastructure fund N53.79 billion (0.47 per cent), foreign money market securities N16.91 billion (0.15 per cent), Reits, N11.32 billion (0.10 per cent) and cash & other assets N63.90 billion (0.56 per cent).
Earlier, the acting director-general of PenCom, Mrs Aisha Dahir-Umar had said the Contributory Pension Scheme (CPS), which has attracted N11.35 contributions has been very impactful in Nigeria since the commencement of its implementation in 2004.
To this end, she added that the formation of long term domestic capital, represented by the huge value of pension assets, belonging to over 9 million formal sector participants is slowly but surely changing Nigeria’s financial landscape.