The nation’s pension fund assets rose by N100 billion to N12.34 trillion in March, 2021 from N12.24 trillion it was at the end of February, LEADERSHIP can now reveal.
In an unaudited report for the month of March 2021, released by the National Pension Commission (PenCom) yesterday, the total number of pension contributors also rose from 9.27 million to 9.30 million Retirement Saving Account (RSA) holders as at March, 2021
The assets stood at N12.29 trillion in January, but dropped to N12.24 trillion in February, owing to investment loss, before it picked up in March, 2021 to the aforementioned amount.
Similarly, N8.51 trillion was invested in federal government’s securities, as bonds gulped N7.67 trillion investment; treasury bills, N721.74 billion; agency bond, N12.91 billion; Sukuk bonds, N85.09 billion and green bonds N12.88 billion.
Investment income, according to LEADERSHIP investigation, was instrumental to the continuous growth in pension fund, despite the fact that governments at majorly, State level are not paying the monthly pension contributions of their workers as and when due.
Similarly, the huge increase, according to findings, was attributed to new pension contributions received, interest from fixed income securities and net realised on equities and mutual fund investments.
Speaking in an exclusive interview with LEADERSHIP recently, the president, Pension Fund Operators Association of Nigeria (PenOp), who is also the managing director/CEO, ARM Pensions, Mr. Wale Odutola, said the pension fund operators have most of their investments in federal government bonds because it is the safest investment instrument that consistently gives good returns on investment.
Although, he said, each PFA has its investment model that best work for them, he added that, even with the drop in bond yields, it’s still the safest
Related: Pension Fund Assets Hit N12.3trn(Opens in a new browser tab)