In its third quarter report of 2020, the National Pension Commission (PenCom) has disclosed that pension assets under the Contributory Pension Scheme (CPS) has increased to ₦11.56 trillion.
PenCom’s Acting Director-General, Aisha Dahir-Umar disclosed that about 65 percent of the total pension assets were invested in the Federal Government of Nigeria (FGN)’s Securities.
She explained that the investment was traded with an allocation of 57 percent in FGN Bonds, 7 percent in Treasury Bills, 1 percent in Sukuk Bonds, while Agency Bonds and Green Bonds got less than one percent.Dahir-Umar said the value of investments in domestic quoted ordinary shares was ₦585.77 billion, representing 5 percent of Total Assets under Management (AuM) as at September 30, 2020. This indicates an increase of ₦61.00 billion or 11.62 percent compared to the value of ₦524.77 billion as at June 30, 2020.
According to her, the increase was basically because of the appreciation of some stocks during the reporting period, as the Nigerian Stock Exchange All Share Index (NSE-ASI) rose by 9.61 percent from 24,479.22 basis points (bps) as at June 30, 2020 to 26,831.76 bps as at September 30, 2020.
Dahir-Umar noted that the value of investments in FGN Bonds increased by ₦329.88 billion representing 5.23 percent; FGN Sukuk by ₦9.16 billion representing 9.31 percent, while investments in Treasury Bills decreased by ₦239.85 billion representing 23.51 percent; Agency Bonds by ₦0.45 billion representing 4.07 percent and Green Bonds by ₦1.55 representing 10.62 percent billion.She attributed the decrease to maturities and reallocation to other asset classes, mainly FGN Bonds and Money Market Securities.Nigeria’s Pension Assets Hit ₦11.56trn In Q3 2020.
The PenCom boss however said the total value of pension fund assets of ₦11.56 trillion comprises of N8 trillion of the Retirement Savings Account (RSA) ‘Active’ Funds like RSA Funds I, II, III and V; ₦934.19 billion of the RSA Retiree Fund; ₦1.44 trillion of the CPFAs Fund; and ₦1.19 trillion for the Approved Existing Schemes (AES) funds.
The report further revealed that the total pension contributions grew by ₦184.68 billion during the period under review.Dahir-Umar said out of this total, the public sector accounted for ₦117.70 billion or 63.73 percent while the private sector contributed N66.98 billion or 36.27 per cent.
“The cumulative pension contributions received from both the public and private sectors from inception to the end of the third quarter of 2020, therefore, amounted to ₦6.37 trillion, up from the ₦6.19 trillion as at the end of the second quarter, 2020, representing a growth of 2.98 per cent.
“The aggregate total pension contributions of the public sector increased by 3.76 per cent from ₦3.13 trillion as at the end of the second quarter 2020 to ₦3.25 trillion as at the end of the reporting period. The aggregate total pension contributions of the private sector on the other hand increased by 2.19 per cent from ₦3.06 trillion as at the end of the second quarter, 2020 to ₦3.13 trillion as at the end of the reporting period,” Dahir-Umar said.