KEY POINTS
- Pension fund assets rose by N289.40 billion to N31.80 trillion as of Aug. 31.
- Retirement Savings Account membership increased to 11.39 million during the period.
- Federal Government securities remained the largest component of pension fund investments at N17.80 trillion.
MAIN STORY
Pension fund assets under Nigeria’s Contributory Pension Scheme (CPS) increased by N289.40 billion in August to N31.80 trillion, according to the latest industry report by the National Pension Commission (PenCom).
The unaudited monthly report, released on Tuesday, showed that the industry’s total net asset value rose from N31.51 trillion at the end of July, representing a 0.92 per cent monthly increase.
The report also put total membership of Retirement Savings Accounts (RSAs) at 11,391,008 as of Aug. 31.
Investment in Federal Government securities continued to account for the largest share of pension fund assets, with N17.80 trillion invested in the category.
Domestic ordinary shares followed with N6.32 trillion, while pension funds held N280.66 billion in foreign ordinary shares.
Money market instruments accounted for N3.27 trillion of the portfolio. The category comprised fixed deposits, bank acceptances, commercial papers and other eligible investments.
Corporate debt securities represented another N2.21 trillion, while N326.64 billion was invested in mutual funds.
The remaining assets included N344.62 billion in infrastructure funds, N132.81 billion in real estate investments and N267.01 billion in private equity.
Cash and other assets stood at N462.42 billion as of the end of August.
THE ISSUES
- The August increase takes the pension industry’s assets above N31.8 trillion, with the monthly growth indicating continued expansion in the value of funds managed under the CPS.
- Federal Government securities remain the dominant investment destination, accounting for more than half of the industry’s total assets. Domestic equities and money market instruments also represent substantial portions of the portfolio.
- The investment figures show that pension funds are spread across several asset classes, including corporate debt, infrastructure, real estate and private equity, although these categories remain considerably smaller than government securities.
WHAT’S NEXT
PenCom’s subsequent monthly reports will provide the next update on pension asset growth, RSA membership and changes in the allocation of funds across the various investment categories.
BOTTOM LINE
Nigeria’s pension fund assets reached N31.80 trillion at the end of August, up 0.92 per cent from July, while Federal Government securities remained the largest component of the industry’s investment portfolio.
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