As of the end of August 2023, Nigeria’s pension assets surged to a substantial N17.292 trillion, marking a notable increase from N17.07 trillion in July 2023, according to reports obtained by PensionTalk.
This impressive net asset value (NAV) growth of 15.34 percent over the first eight months of the year, when compared to the NAV of N14.99 trillion as of December 31, 2022, reflects a robust trend in the nation’s pension industry.
Notably, a significant portion of these pension funds, accounting for 66.31 percent, found their investment haven in Federal Government of Nigeria (FGN) securities, while corporate debt securities and money market instruments claimed 10.74 percent and 7.51 percent, respectively.
The increase in the pension fund’s size, climbing by N307.12 billion to N17.07 trillion in July, can be attributed to a combination of factors, including investment income, despite challenges in timely pension contributions by some government entities at the state level.
Investment income, new pension contributions and interest from fixed-income securities played pivotal roles in the continuous growth of the pension fund. Net gains from equities and mutual fund investments also contributed to this upward trajectory.
During a recent interactive session organized by the National Pension Commission (PenCom) and the Nigeria Employers Consultative Association (NECA) on the Contributory Pension Scheme (CPS) for the Organized Private Sector (OPS) in Lagos, Mrs. Aisha Dahir-Umar, Director-General of PenCom, commended NECA for fostering social dialogue on CPS implementation. She emphasized the positive impact of such dialogues on CPS implementation and mentioned various regulatory developments to enhance the system.
Among these developments, she highlighted the Enhanced Contributors Registration System (ECRS) and the Data Recapture Exercise (DRE), aimed at updating information for RSA holders. Furthermore, PenCom introduced the RSA Transfer System (RTS) to facilitate transfers between Pension Fund Administrators (PFAs) and improve service quality.
Dahir-Umar also noted the release of guidelines for accessing Retirement Savings Account (RSA) balances to fund residential mortgage equity contributions, demonstrating a commitment to improving the retirement experience for RSA holders.