The National Pension Commission (PenCom) has reported a remarkable appreciation in Nigeria’s pension fund assets. As of January 31, 2024, the total assets have surged by an impressive N1.17 trillion, reaching a staggering N19.53 trillion. This growth comes on the reported N18.36 trillion recorded at the close of the previous year, on December 31, 2023.
As disclosed by the National Pension Commission (PenCom), the number of Retirement Savings Account (RSA) subscribers stood at 10.22 million during the period under review. This indicates a continued interest and participation in the pension scheme, which is crucial for the long-term sustainability of the system.
The allocation of pension fund assets reveals a diverse investment strategy aimed at optimizing returns while ensuring the safety and security of the funds. The majority of the funds, amounting to N12.14 trillion, were invested in the Federal Government’s securities, highlighting the confidence of pension regulators in government-backed instruments.
A breakdown of the investments shows that N11.59 trillion was invested in bonds, indicating a significant allocation to fixed-income securities. Treasury bills accounted for N221.81 billion, while agency bonds, Sukuk bonds, and green bonds accounted for N14.86 billion, N124.89 billion, and N181.57 billion, respectively. This diversified portfolio reflects a prudent approach to risk management and capital preservation.
Furthermore, the investment of N270 billion in state government securities demonstrates support for sub-national entities, contributing to the development of infrastructure and economic activities at the state level.
Money market instruments, with an investment of N1.71 trillion, provide liquidity and short-term investment opportunities, ensuring flexibility in portfolio management.
Here are the key highlights:
Retirement Savings Account (RSA) Subscribers: The number of RSA subscribers during this period stood at an impressive 10.22 million.
- Investment Allocation:
- Federal Government Securities: A substantial portion of the fund, N12.14 trillion, was invested in the Federal Government’s securities.
- Bonds: N11.59 trillion was allocated to bonds.
- Treasury Bills: Treasury bills accounted for N221.81 billion.
- Agency Bonds: The Commission held N14.86 billion in agency bonds.
- Sukuk Bonds: A total of N124.89 billion was invested in Sukuk bonds.
- Green Bonds: Investments in green bonds reached N181.57 billion.
- State Government Securities: PenCom allocated N270 billion to state government securities.
- Money Market Instruments: A significant portion of the fund, N1.71 trillion, was invested in money market instruments.
- Valuation: The total fund assets, when converted to United States dollars, amounted to $14.39 billion at an exchange rate of N1,356 per dollar.
