Nigeria’s pension fund rose from N8.63 trillion as at December 2018 to N8.74 trillion at the end of January 2019. The new figure is N110 billion above the amount for the outgone year.
The increase is attributed to more contributors who joined the scheme during the period under review.
LEADERSHIP learnt that the contributors rose by 5,000 from 8.41 million in December 2018 to 8.46million at the end of January 2019.
Of the N8.74 trillion pension assets, N6.51 trillion, representing 73 per cent of the total pension fund is invested in federal government’s securities issued to finance various activities and projects.
The consistent increase in pension assets on a monthly basis, was attributed to new pension contributions received, interest from fixed income securities and net realised on equities and mutual fund investments.
Investment income, according to LEADERSHIP investigation, was instrumental to the continuous growth in pension fund, despite the fact that the federal and state governments do not remit the monthly contributions of their workers as and when due.
Meanwhile, the acting director-general of the National Pension Commission (PenCom), Mrs. Aisha Dahir-Umar, has said that the Contributory Pension Scheme (CPS) has been very impactful in Nigeria since its implementation in 2004.
She disclosed at the weekend that the formation of long-term domestic capital, represented by the over N8.74 trillion worth of pension assets as at January 2019, belonging to 8.46 million formal sector participants, was slowly but surely changing Nigeria’s financial landscape.
This, by extension, she stressed, was also transforming the course and pace of socio-economic development in the country.
Noting that N6.51 trillion, representing 73 per cent of the total pension assets is invested in federal government’s securities issued to finance the various activities of the government, Dahir-Umar said: “In the area of infrastructure alone, the pension funds invested about N95.31 billion in the N200 billion Sukuk issued by the federal government. Similarly, of the N10.67 billion Green Bond issued by the federal government, pension fund invested N7.19 billion.”