Adedapo Adesanya
By Adedapo Adesanya
The National Pension Commission (PenCom) has revealed that pension assets rose by N23 billion to N9.81 trillion as at the end of October 2019 from the figures recorded in September.
According to the pension industry regulator, this increase occurred despite the fact that N6.91 trillion of the assets were invested in federal government of Nigeria securities.
In its monthly summary of pension fund assets, the agency said pension fund operators invested N4.58 trillion amounting to 46.66 percent in FGN Bonds; N2.23 trillion in Treasury Bills (22.82 percent); N5.40 billion in Agency Bonds (Nigeria Mortgage Refinance Company – NMRC and Federal Mortgage Bank of Nigeria – FMBN) at 0.06 per cent; N71.13 billion in Sukuk (0.72 percent) and N15.85 billion in Green bonds representing 0.16 per cent of the investments.
PenCom further noted that in line the multi-fund structure, Retirement Saving Account (RSA) Fund I, a total of N20.77 billion was invested; RSA Fund II; RSA Fund III, and RSA Fund IV, all got N4.26 trillion, N2.43 trillion, and N778.03 billion respectively.
It stated that N475.68 billion, 4.85 percent of the funds, was invested in domestic ordinary shares; while N66.98 billion, amounting to 0.68 percent in foreign ordinary shares.
The pension body maintained that pension operators invested N127.21 billion (1.30 percent) in State Government’s Securities; Corporate bonds got N308.44 billion (6.08 percent); Corporate Infrastructure bonds, received N12.26 billion, (0.13 percent);
Also, N29.99 billion (0.31 percent) were invested in Corporate Green bonds; Supra-National Bonds got N4.07 billion (0.04 per cent); local money market, N1.15 trillion, (11.73 percent); commercial papers got N97.85 billion (1.00 percent); while Banks got N1.05 trillion (10.73 percent).
Others are, real estate investment trust (REIT), N11.87 billion, (0.12 percent) Foreign Money Market Securities, N4.92 billion, (0.05 percent); private equity fund, N32.57 billion, (0.33 percent), Real Estate Properties, N243.59 billion, (2.48 percent); infrastructure funds, N37.59 billion, (0.35 percent) and cash and other assets, N95.31 billion, (0.97 percent).
According to the Acting Director-General, PenCom, Mrs Aisha Dahir-Umar, the implementation of the Contributory Pension Scheme (CPS) has greatly impacted the economy.
She added that the major visible areas of this impact are the economic and social spheres and that the pension assets are slowly changing Nigeria’s financial landscape leading to a better socio-economic development in the country.
