Nigeria’s pension fund assets under the Contributory Pension Scheme (CPS) increased by 3.26 percent quarter-on-quarter to ₦13.42 trillion in December 2021, up from ₦13.01 trillion in September 2021, PenCom has revealed.
The gain was mostly due to pension contributions received and market valuation of the Federal Government of Nigeria (FGN) bonds and equities, according to the National Pension Commission’s fourth-quarter 2021 report.
Investment in FGN securities climbed by 6.7 percent to N8.77 trillion in December 2021 from N8.22 trillion in September, according to further data.
Investment in FGN Bonds climbed by 2.3 percent to N8.3 trillion in December from N7.8 trillion in September, according to a breakdown of FGN securities investments.
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Investment in Nigerian Treasury Bills fell 9.9% to 255.7 billion from 283.9 billion, while agency bonds rose 3.9 percent to 14.3 billion from 13.8 billion, Sukuk Bonds rose 48.3% to 118.3 billion from 79.8 billion, and Green Bonds surged 394.6 percent to 59.3 billion from 11.9. billion.
“The growth in Q4 2021 was larger than the rise of N343.99 billion or 2.72 percent recorded in Q3:2021, primarily owing to contributions received and market valuation of FGN bonds and equities,” PenCom added in the report.
“The growth in the value of FGN Securities investments was primarily attributable to further investments in this asset class throughout the quarter,” says the report.
Also, the report further revealed that the total number of Retirement Savings Account (RSA) registrations increased by 0.72 percent to 9,529,127 at the end of Q4’21, up from 9,461,173 in Q3’21. This was mostly related to the private sector’s greater compliance.
