PENSION FUNDS HIT N17.07TR

Compared to the N16.76 trillion reported the month before, the net asset value of Nigeria’s pension fund reached N17.07 trillion as of the end of July this year.
N307.1 billion, or 1.81 percent, more was added to the fund in a single month.

This was indicated in the report on the pension funds industry portfolio for the period ending July 31, 2023 by the National Pension Commission (PenCom).

According to the commission, of the N17.07 trillion registered in July, a total of N11.02 trillion was invested in federal government securities by pension fund administrations (PFAs).

Only N198.8 billion in Treasury Bills were invested under this type of investment, compared to a significant portion of N10.56 trillion in Federal Government Bonds.

Similarly, N10.9 billion was allocated for agency bonds, N154.7 billion for sukuk bonds, N92.3 billion for green bonds, and N275.5 billion for state government securities.

Corporate Bonds (HTM) received N1.4 trillion, Corporate Bonds (AFS) N379 billion, Corporate Infrastructure Bonds N16.2 billion, and Corporate Green Bonds N8.5 billion, making up the second-largest investment in corporate debt securities at N1.84 trillion.

PFAs invested N1.5 trillion in money market instruments, compared to N1.3 trillion in fixed deposits and bank acceptance, N208.3 billion in commercial papers, and N51.2 billion in foreign money market instruments.

While Cash and Other Assets received N251.2 billion, Mutual Funds received N121 billion, Open/Close Funds N99.9 billion, REITs N21.1 billion, Supra-National Bonds N9.7, Infrastructure Funds N128.5 billion, Real Estate N219.2 billion, and Private Equities N61.5 billion.

Furthermore, the value of domestic ordinary shares was N1.3 trillion, while the value of foreign ordinary shares was N204.12 billion.

As the number of people with Retirement Savings Accounts (RSA) increased from 10,009,049 in June to 10,025,314 in July 2023, so did the number of contributors to the Contributory Pension Scheme (CPS).

In one month, 16,265 new members contributed to the membership.