Economy
Pension Assets to Grow 8.5% in 2020—Report
By Modupe Gbadeyanka
Despite the slowdown in economic activities in 2020, a report has shown that the Nigerian pension industry is expected to record a growth this year, with the pension assets rising by 8.5 per cent.
According to the Agusto & Co’s 2020 Pension Industry Report, as at 31 December, the Nigerian Pension Industry’s assets under management stood at N10.2 trillion (or $28.3 billion at $1= N360) as at December 31, 2019, representing an 18.6 per cent growth from the N8.3 billion recorded at the end of 2018 and a 17.2 per cent compound annual growth rate over the last five years.
Growth in managed assets has been increasingly driven by investment returns rather than additional contributions over the last five years.
Specifically, 63.4 per cent of growth was attributable to investment returns earned on managed assets with the outstanding 33.6 per cent representing net annual contributions in the last five years.
It is believed that the sector has evolved over the years from one with predominantly public sector participants running a defined benefit scheme to a mandatory defined contribution system for all government and private-sector employees in the country.
The 2004 pension reform redefined retirement planning in Nigeria and led to a significant boost in the number of enrolees and the size of managed assets in the Industry.
Going forward, Agusto & Co said it expects a considerable slowdown in AuM growth driven by lower contributions as unemployment is expected to rise significantly given the weakened macroeconomic environment following the COVID-19 pandemic.
“Job losses are expected to trigger higher benefit withdrawals as disengaged enrolees seek access to the 25 per cent lump sum drawings permitted by PenCom regulations for employees out of work for more than three months.
“Investment performance is also expected to fall considerably in line with the lower yields on government securities, which account for over 70 per cent of the industry’s asset allocation.
“Nonetheless, we note positively the favourable demography of enrolees, which has over 73.8 per cent below the age of 50 indicating relatively low expectations of liquidity events such as lump- sum payments, annuities and programmed withdrawals.
“We expect AuM to continue to grow albeit at a much slower pace of 8.5 per cent in 2020 and rising to 12 per cent in 2021, which is well below the compound annual growth rate (CAGR) of 17.2 per cent over the last five years,” it said.
The report noted that despite the notable strides in pension reforms and double-digit average growth in the last five years, Nigeria continues to lag behind some emerging markets in terms of pension penetration, with a pension AuM to GDP ratio of 6.8 per cent.
The sector’s AuM to GDP ratio falls below those of Kenya and South Africa with 13.2 per cent and over 120 per cent respectively but compares well with Ghana’s 5 per cent.
The weak pension penetration has been due in part to the previous exclusion of Nigeria’s informal sector (which accounts for an estimated 65 per cent of GDP) and the low compliance rate of eligible organisations.
“Nonetheless, we note increased efforts by the Commission to ensure compliance and drive enrolee participation. Most notable is the micro pension scheme (MPS).
“The micro pension scheme allows previously excluded self-employed persons and organisations with less than three persons to participate in the contributory pension scheme under more flexible rules.
“We remain unconvinced by the structure of the scheme for informal sector operators, given that compliance is optional and prior lessons from the National Health Insurance Scheme indicate voluntary compliance is unlikely to yield significant levels of enrolment,” it said.
Agusto & Co’s 2020 Pension Industry Report provides detailed information on the structure and competitive environment of the Industry as well as the regulatory environment and its impact on the Industry’s performance.
Recent developments and key issues including the most anticipated transfer window, minimum pension guarantee, multi-fund structure and the micro pension scheme are also discussed in detail.
Furthermore, the report provides detailed analysis of the Industry’s financial condition as well as the performance of the individual funds (funds I-IV). Agusto & Co has also ranked PFAs by share of managed assets and fund performance in the report.
By Dipo Olowookere
The first trading session on the floor of the Nigerian Exchange (NGX) Limited after the two-day break for Easter ended on a positive note, with a 0.16 per cent rise on Tuesday, April 7, 2026.
The local stock exchange last opened its doors to investors last Thursday, and at the resumption of trading activities yesterday, market participants showed enthusiasm, mopping up shares in the banking ecosystem, and rescuing the bourse from the bears.
This returned Customs Street to the green territory, with the All-Share Index (ASI) growing by 324.21 points to 202,023.10 points from 201,698.89 points, and the market capitalisation up by N209 billion to N130.015 trillion from N129.806 trillion.
The expansion experienced during the session was inspired by three sectors, with the banking index up by 1.46 per cent, the energy space up by 0.12 per cent, and the consumer goods counter up by 0.10 per cent. But the insurance sector lost 1.37 per cent, and the industrial goods sector depreciated by 0.31 per cent.
Business Post reports that investor sentiment was bearish on Tuesday after a negative market breadth index caused by 25 price gainers and 36 price losers.
Ellah Lakes slumped by 10.00 per cent to N10.80, DAAR Communications gave up 9.95 per cent to trade at N1.72, Chams decreased by 9.87 per cent to N3.38, John Holt lost 9.71 per cent to finish at N13.95, and Sunu Assurances slipped by 9.68 per cent to N4.20.
On the flip side, Trans Nationwide Express gained 9.86 per cent to quote at N3.12, Omatek appreciated by 9.76 per cent to N2.25, Cadbury Nigeria improved by 9.53 per cent to N75.25, First Holdco rose by 9.10 per cent to N54.55, and Fortis Global Insurance chalked up 6.50 per cent to close at N1.31.
Trading data revealed that activity level improved during the session, with the trading volume up by 114.29 per cent to 1.2 billion shares from 560.0 million shares, the trading value surged by 108.81 per cent to N40.3 billion from N19.3 billion, and the number of deals soared by 57.03 per cent to 78,006 deals from 49,676 deals.
Wema Bank transacted 282.6 million equities valued at N7.3 billion, Access Holdings exchanged 125.2 million stocks worth N3.3 billion, VFD Group traded 106.8 million shares for N1.1 billion, First Holdco sold 63.0 million equities worth N3.2 billion, and GTCO exchanged 56.6 million shares valued at N7.1 billion.
By Adedapo Adesanya
The oil market was down $100 per barrel on Wednesday after US President Donald Trump said he had agreed to a two-week ceasefire with Iran, subject to the immediate and safe reopening of the Strait of Hormuz.
Brent futures lost $14.51 or 13.3 per cent to sell for $94.76 a barrel, while the US West Texas Intermediate (WTI) futures fell by $17.16 or 15.2 per cent to $95.79 a barrel.
WTI has maintained its price premium over Brent in a reversal of typical price patterns due to its delivery contract being for May while Brent is for June, reflecting that barrels with an earlier delivery date are commanding a higher price.
President Trump’s turnaround came shortly before his deadline for Iran to open the Strait of Hormuz, where 20 per cent of the world’s oil transits, or face widespread attacks on its civilian infrastructure.
“This will be a double-sided CEASEFIRE!” he wrote on social media, after posting earlier on Tuesday that “a whole civilisation will die tonight” if his demands were not met.
President Trump indicated that negotiations may be progressing toward a more durable agreement, citing a 10-point proposal from Iran that he described as a “workable basis” for long-term peace.
Iran said it would halt its attacks if attacks against it stopped and that safe transit through the Strait of Hormuz would be possible for two weeks in coordination with Iranian armed forces.
Despite the breakthrough, tensions remain elevated across the region, with several Gulf states reporting missile launches, drone activity, or issuing civil defence warnings.
The single most important factor to watch will be how many tankers cross the Strait of Hormuz with this new agreement in place. Already, another tanker operated by Malaysia’s Petronas and carrying Iraqi crude was allowed passage in the latest sign of a modest restoration of oil flows via the chokepoint.
Earlier in the week, two tankers carrying LPG for India were also allowed to pass the strait after Iran began making individual passage deals with foreign governments. The past few days have also seen three Oman-operated vessels clear the chokepoint, as well as a French container ship and a Japanese gas carrier. China, Russia, Turkey, and Pakistan are also among the countries that Iran is allowing to send ships via the waterway.
The US-Israeli war with Iran saw the steepest monthly oil price rise in history in March of more than 50 per cent.
By Adedapo Adesanya
Vert, a global cross-border payments platform, has announced a new solution under Verto Business Accounts that enables US-registered businesses to move money seamlessly between the United States and Africa.
With the ability to open a US Dollar account in their business name and have access to trusted emerging market payment rails, companies can now receive, hold, and transfer funds faster, more cost-effectively, and with greater control.
US-registered businesses with operations in Africa often encounter significant banking limitations, with US banks frequently delaying or blocking transactions to or from African markets, imposing high or hidden FX costs, and offering limited access to Emerging Market payment corridors. Businesses without a US bank account registered in their own name must rely on fragmented tools or intermediaries to move funds to Africa, creating operational inefficiencies and slowing growth.
Verto’s new solution directly addresses these challenges by giving US-domiciled businesses access to named USD accounts and a robust cross-border payment infrastructure, enabling them to move funds and settle transactions in local currencies with speed and efficiency.
Built for venture-backed startups, import-export SMEs, and investors funding emerging market innovation, this solution will enable clients to receive funds directly into a named USD business account from US based customers or investors, convert and settle between USD and local currencies such as NGN and KES quickly and at lower cost, as well as hold, receive, and pay in 48 currencies from a single dashboard.
The solution will also allow users to pay contractors, suppliers, and offshore teams instantly via local payment rails. It also equips teams with virtual cards to spend in 11 currencies without fees and leverage specialised onboarding and monitoring that navigates both US and African regulatory requirements
By combining US and African compliance expertise, Verto’s Business Accounts empowers companies to maintain a US domestic presence for investors, customers, and suppliers while using deep-liquidity rails to pay global contractors and settle trades in local currencies efficiently, ensuring uninterrupted trade, payroll, and investment flows, without the risk of blocked or delayed transactions.
“We believe founders building across borders should not be constrained by the limitations of traditional banking,” said Ola Oyetayo, CEO of Verto. “Providing named accounts in the US empowers businesses with the funds they need to operate globally, connecting the US and Africa more efficiently without friction.”
With over 8 years of experience and $25 billion in annual global cross-border transaction volume, Verto continues to provide the infrastructure, expertise, and trusted payment rails businesses need to operate confidently across borders and scale globally.
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