National Pension Commission (PenCom), in its third quarter report, said Nigeria’s total pension fund assets increased to N11.56 trillion as of the end of September 30, 2020.
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 N585.77 billion, representing 5 percent of Total Assets under Management (AuM) as at September 30, 2020. This indicates an increase of N61.00 billion or 11.62 percent compared to the value of N524.77 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 N329.88 billion representing 5.23 percent; FGN Sukuk by N9.16 billion representing 9.31 percent, while investments in Treasury Bills decreased by N239.85 billion representing 23.51 percent; Agency Bonds by N0.45 billion representing 4.07 percent and Green Bonds by N1.55 representing 10.62 percent billion.
She attributed the decrease to maturities and reallocation to other asset classes, mainly FGN Bonds and Money Market Securities.
The PenCom boss however said the total value of pension fund assets of N11.56 trillion comprises of N8 trillion of the Retirement Savings Account (RSA) ‘Active’ Funds like RSA Funds I, II, III and V; N934.19 billion of the RSA Retiree Fund; N1.44 trillion of the CPFAs Fund; and N1.19 trillion for the Approved Existing Schemes (AES) funds.
The report further revealed that the total pension contributions grew by N184.68 billion during the period under review.
Dahir-Umar said out of this total, the public sector accounted for N117.70 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 N6.37 trillion, up from the N6.19 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 N3.13 trillion as at the end of the second quarter 2020 to N3.25 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 N3.06 trillion as at the end of the second quarter, 2020 to N3.13 trillion as at the end of the reporting period,” Dahir-Umar said.
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