back to top

Pension fund rises to N19.787 trn in April amid investments growth

AVAILABLE data from the National Pension Commission (PenCom) has revealed that Nigeria’s pension fund assets have increased to N19.787 trillion as of April 30, 2024.

This marks a growth of approximately 0.6 per cent compared to the N19.669 trillion recorded as the net asset value in March 2024.

The figures were disclosed in PenCom’s monthly report for April 2024.

This steady increase highlights the resilience and growth of Nigeria’s pension fund sector despite economic challenges.

According to the report, a detailed analysis of the pension fund portfolio showed a significant allocation to Federal Government of Nigeria (FGN) securities, which continues to dominate the investment landscape.

According to the monthly reports, investments in FGN securities amount to approximately N12.396 trillion, representing 62.65per cent of the total net asset value (NAV).

Additionally, pension funds have allocated N2.095 trillion to corporate debt securities and N1.952 trillion to money market instruments. These allocations reflect a diversified approach to managing pension assets, aimed at balancing risk and returns.

Conversely, the report also highlights a notable decline in investments in ordinary shares of local companies. The value of these investments dropped by 12.39 per cent, from N2.082 trillion in March to N1.822 trillion in April.

Under the Multi-Fund Structure, Fund II, which is the default Retirement Savings Account (RSA) Fund, maintained the largest share of the Active RSA Funds allocation with N8.303 trillion, representing 41.96 per cent of the total fund NAV.

Fund III also saw growth, rising by 0.83per cent from N5.173 trillion in March 2024 to N5.216 trillion in April 2024, maintaining its position as the second-largest allocation.

Read Also:

Fund IV posted N1.447 trillion in April 2024, representing a growth of 1.18 per cent recorded the previous month of March 2024.

In terms of RSA membership, there was a slight increase of 0.33per cent, with the number of members rising from 10,280,956 in March 2024 to 10,315,034 in April 2024.

Pension Funds, Net Asset Values have risen from N14.9 trillion in December 2022 to N19.8 trillion or a whopping N4.8 trillion representing a 32.89 increase.

For context, between 2021 and 2022, Pension Fund Assets rose by just N1.57 trillion from N13.42 trillion to N14.99 trillion




     

     

    The rise is likely linked to a combination of a surge in pension fund contributions and a rise in portfolio values.

    For example, FGN Securities has seen its Net Asset Values rise from N9.64 trillion in 2022 to N12.06 trillion as of April 2024.

    It would be noted that the former vice president, Atiku Abubakar recently raised alarm when the federal government purportedly planned to tap into the N20 trillion pension fund for infrastructural development. However, the minister of Finance, Wale Edun debunked the claim and stressed that the legal framework as provided by Pension reform act on such funds won’t allow such moves by the government.

    The Pension Reform Act 2004 established the National Pension Commission (PenCom) as the body to regulate, supervise, and ensure the effective administration of pension matters in Nigeria.

    Advertisements

    Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.

    Join the ICIR WhatsApp channel for in-depth reports on the economy, politics and governance, and investigative reports.

    Support the ICIR

    We invite you to support us to continue the work we do.

    Your support will strengthen journalism in Nigeria and help sustain our democracy.

    If you or someone you know has a lead, tip or personal experience about this report, our WhatsApp line is open and confidential for a conversation

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here


    Support the ICIR

    We need your support to produce excellent journalism at all times.

    - Advertisement

    Recent

    - Advertisement