Pension Fund Assets Rise By N1.2trn In 2022

Inspite of the harsh operating business environment in the outgone year 2022, the nation’s pension fund assets may have risen by N1.2trillion by December 31, 2022, LEADERSHIP can exclusively reveal. 

This is despite the fact that some states and private sector players were unable to fully settle their outstanding pension liabilities.  

The pension fund assets stood at N13.6trillion as at the end of January 2022, and was N14.58trillion as at October, 2022 which is the latest figure released by the National Pension Commission (NAICOM), with pension fund operators optimistic the figure will rise to N14.8trillion by year end. 

By this, the assets would have risen by N1.2 trillion in 2022, growing by N200 billion when compared to N1 trillion the assets grew in 2021. 

Investment income, according to LEADERSHIP investigation, was instrumental to the increase, 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 consistent 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.

Corroborating this, the managing director/CEO, First Pension Custodian, Mr. Oloruntimilehin George said,  operators are optimistic the fund will hit N14.8trillion by year end.

According to him, “ the nation’s pension fund assets is expected to hit N14.8trillion, despite the challenging business environment, not forgotten that the industry also undergone recapitalisation of which all PFAs scaled through. The Shareholders Fund of the industry is N211billion post recapitalisation.” 

Meanwhile, it would be recalled that the National Pension Commission (PenCom) commenced the implementation of guidelines on accessing Retirement Savings account (RSA) balance for payment of equity contribution for residential mortgage by pension contributors.

PenCom stated that, the approval was in line with Section 89 (2) of the Pension Reform Act (PRA) 2014, which allows RSA holders to use a portion of their Retirement Savings Account (RSA) balance towards payment of equity for residential mortgage.

In the guidelines highlighted, it said, the plan covers pension contributors in active employment, either as a salaried employee or as a self-employed person. On this, the managing director/CEO, Premium Pension Limited (PPL), Mr. Umar Sand Mairami, while reacting on this development, , noted that, the Pension Fund Administrators(PFAs) are partnering some mortgage banks to ensure that contributors benefit from this scheme. 

Stating that only 25 per cent of the RSA balance is allowed to be used as equity for the residential mortgage, he noted that, the partnership with mortgage firms will ensure that RSA holders get better rates for this housing scheme.