Pension Fund Assets Surge by N470bn in a month

The nation’s pension fund assets experienced a significant increase, rising from N19.75 trillion in April to N20.2 trillion in May 2024, an impressive growth of about N470 billion within one month.

Data sourced from the National Pension Commission (PenCom) and dated July 3, 2024, indicates a notable rise in investment in FGN Securities. These investments increased from N12.39 trillion in April to N12.7 trillion in May 2024.

This includes N12 trillion in FGN Government Bonds, N370 billion in Treasury Bills, N116.6 billion in Sukuk Bonds, and N212.16 billion in Green Bonds. State Government Securities amounted to N264.3 billion during the same period.

Pension fund operators also invested N1.92 trillion in Money Market Instruments. Investigations reveal that investment income played a crucial role in the continuous growth of the pension fund, despite delays in monthly pension contributions from some state governments.

The significant increase in pension fund assets can be attributed to new pension contributions, interest from fixed-income securities, and net gains realized on equities and mutual fund investments.

At a recent seminar in Lagos, Oguche Aguda, the Executive Secretary/CEO of the Pension Fund Operators Association of Nigeria (PenOp), praised the contributions of pension fund operators in growing the assets.

He assured pension contributors that their funds were safe, emphasizing that there has been no reported mismanagement under the Contributory Pension Scheme (CPS). This, he noted, is due to the prudent management of assets by operators and strict enforcement of pension regulations by PenCom.

Similarly, Aisha Dahir-Umar, the Director General of PenCom, highlighted the growth in pension fund assets as a testament to the diligent and honest management of funds by pension operators and the regulator.

“The maintenance of a consistent growth trajectory continues to justify the Commission’s overriding investment philosophy of ensuring the safety of pension fund assets”, she said.