Pension Fund Hits N7.51 Trillion

pension fund
  • Pension Fund Hits N7.51 Trillion

Nigeria’s pension fund assets has grown to N7.51 trillion as at 31 December, 2017, a report by the National Pension Commission (PenCom), has shown.

The report tilted, “2017 Fourth Quarter Pension Summary Report,” stated that the total value of pension fund assets which is based on unaudited valuation reports of the pension funds, grew from N7.16 trillion as at 30 September, 2017 to the N7.52 trillion as at 31 December, 2017, representing a growth of 4.90 per cent, or N350.74 billion.

The growth indicates a higher per cent growth rate compared to the 4.85 per cent for the previous quarter.

According to the Commission, the increased asset growth recorded in the fourth quarter of 2017 was mainly due to market valuation of quoted equities and the slightly higher pension contributions in the period relative to the previous quarter.

A breakdown of the pension assets showed that as at fourth quarter 2017, Retirement Savings Account (RSA) active fund constituted the largest proportion of the total pension fund, accounting for 68.05 per cent, or N5.11 trillion of total fund.

On the other hand, the Closed Pension Fund Account (CPFAs) and AES’ assets, stood at N1.01 trillion and N828.15 billion representing 13.42 per cent and 11.02 per cent of the total assets respectively. The RSA Retiree Funds which stood at N564.12 billion represented 7.51 per cent of the total assets.

Meanwhile, the pension industry portfolio showed that the pension fund assets were mainly invested in Federal Government’s Securities, with actual assets allocation of 70.4 per cent of total pension assets.

Out of this investment, 53.8 per cent was invested in FGN Bonds, Treasury Bills got 15.7 per cent, Agency Bonds 0.1 per cent, Sukuk Bonds 0.8 per cent and Green Bonds 0.1 per cent, slightly lower than the 71.9 per cent recorded in the third quarter of 2017, the report indicated.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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