N5.51trn Pension Investment to Drive Nigeria’s Economic Growth —PenCom
Samuel Mobolaji
The National Pension Commission (PenCom) has announced that its N5.51 trillion pension investment portfolio is set to play a pivotal role in stimulating Nigeria’s real sector development. PenCom’s Director-General, Omolola Oloworaran, made the statement during a meeting with a delegation from the International Monetary Fund (IMF), discussing the pension industry and broader financial sector growth.
Oloworaran highlighted that these investments, which span key sectors such as infrastructure, private equity, real estate, and subnational initiatives, are essential for driving economic progress in Nigeria. She emphasized that the pension industry is increasingly contributing to the funding of critical economic growth sectors, positioning itself as a significant player in the country’s development.
Notably, PenCom’s net asset value has grown by 22.65 per cent, rising from N18.36 trillion in December 2023 to N22.51 trillion by December 2024. This growth has been driven by increased contributions and investment income, underscoring the sector’s vital role in wealth creation.
However, Oloworaran pointed out the challenges posed by a limited number of investable instruments that meet the minimum standards required for pension funds. Out of the broad pension index, only 86 instruments currently qualify for liquid pension fund investments. Despite this, PenCom remains committed to expanding the range of eligible investment outlets, working alongside capital market operators to diversify pension fund portfolios and improve real returns.
She also mentioned the commission’s ongoing efforts to encourage greater investment in alternative asset classes, strengthening the sustainability and long-term growth of the Contributory Pension Scheme. Oloworaran reiterated PenCom’s commitment to developing diverse, high-quality financial instruments, collaborating with regulatory bodies such as the Securities and Exchange Commission and the Debt Management Office.
This strategic shift aims to further empower the pension sector, enhancing its role as a catalyst for sustainable economic development in Nigeria.
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