The National Pension Commission (PenCom) recently released the Status of Contributory Pension Assets which revealed an increase of N20trillion to closed at N14.99 trillion approximately as at the end of December 2022 compared to the N14.79 trillion as at the end of November 2022
The Commission’s report excerpts by The Ameh News (TAN) also stated that the Contributory Pension Assets increased by approximately N199.17 billion in December 2022 compared to an increase of N204.73 billion in November 2022.
The PenCom management also listed the top 7 places where pension funds were invested as at December 2022, with percentage invested, they are:
Total FGN Securities N9.64 Trillion (64.33%)
Money Market Instruments N1.98 Trillion (13.23%)
Corporate Debt Securities N1.66 Trillion (11.07%)
Domestic Ordinary Shares N908 Billion (6.06%)
Real Estate N218 Billion (1.45%)
State Govt Securities N166 Billion (1.11%)
Infrastructure Funds N113 Billion (0.75%)
Commission stated that the figures released above are based on unaudited valuation reports.
Comment on fourth quarter 2022 report, which highlights significant developments in the pension industry, Aisha Dahir-Umar, the Director-General of PenCom says this report provides industry stakeholders and the general public with details of strategic activities that focused on ensuring the prompt payment of retirement benefits, as well as efforts aimed at promoting a vibrant and sustainable pension industry that positively impacts the Nigerian economy.
Director-General further commend the sustained efforts of the Staff and Management of the Commission, which ensured the achievement of the Commission’s medium and long-term objectives. She continues, I am also delighted to mention that despite the overwhelming head-winds in the global economic climate and the country’s challenging macroeconomic environment, the Pension Fund Assets under Management (AuM) increased by N568.33 billion from ₦14.42 trillion as 30 September 2022 to N14.99 trillion as at 31 December 2022. This laudable performance, in the growth of the AuM, points to the fact that the pension industry will continue to deliver value and benefit to its stakeholders and the nation’s economy, she added.
During the reporting period, Dahir-Umar disclosed that the Commission stepped up its efforts to ensure sustainable investment by pension funds in alternative asset classes and structured infrastructure projects that meet the strict requirements of the Pension Fund Investments Regulation. She continues, we continued our efforts to ensure further diversification of investments in pension fund portfolio assets. While rising inflation continues to challenge the Nigerian economy, it should be noted that efforts are being made to ensure average annual pension fund returns for RSA and legacy funds exceed headline inflation, DG stated.
In her words: This significant achievement in the Nigerian pension industry would not have been possible without the right people, strategy, culture and governance structure to support delivering consistent and sustainable value to all stakeholders. We reiterate our unwavering commitment to meeting the needs of our stakeholders, providing best practice in pension regulation and supervision in Nigeria, she concluded.
