Pension Assets Grow To N17.35trn In 16 Years

Updated details of movement in pension assets by the National Pension Commission (PenCom) have shown that pension assets grew to N17.35 trillion in the third quarter (Q3) of 2023 from N815.18 billion in 2007.

The official data showed that the public sector contributed a total of N4.87 trillion while the private sector contributed N4.5 trillion in the second quarter of 2023, bringing the total contributions to N9.37 trillion. N7.98 trillion was brought in as accruals to the pension fund investment by the 19 Pension Fund Administrators (PFAs) under the Contributory Pension Scheme (CPS).

Chief executive officer of Pension Fund Operators Association of Nigeria (PenOp), Oguche Agudah, gave the details on Wednesday in a chat with journalists in Abuja.

He also disclosed that N964,239.47 billion was paid to 330.201 applicants as of Q2 2023, while N665.13 billion was paid to 11,708 applicants as a lump sum paid on life annuity.

According to Agudah, PenCom has recovered N24.8 billion in outstanding pensions in the same period.

N1.54 trillion representing 10 per cent
of total pension assets have been invested in corporate debt securities across sectors of the economy, including corporate bonds, telecommunications, flour mills, power and industries.

The value of investments in corporate debt is now N1.86 trillion, while the value of assets in the equity market is put at NO1.54 trillion or 8.88 percent of the total assets.

On the fear that the federal government’s move to borrow from pension funds could create troubles for the industry, Agudah said each pension fund administrator would ensure due diligence before investing pension funds in any government project. He said pension funds are safe and secure from abuse.