The National Pension Commission (PenCom) has disclosed that the worth of pension assets increased from N7.44 trillion in January 2019 to N9.33 trillion as at the end of June 2019.
Speaking at a one-day workshop in Port Harcourt, Rivers State, the commission’s Acting Director-General, Aisha Dahir-Umar, attributed the rise to the support from the Organised Private Sector (OPS) and labour.
Dahir-Umar, who was represented at the event by Salihu Bwala, explained that PenCom was able to recover N16 billion unremitted pension contributions from various employers of labour in the last seven years.
“The pension industry is one of the fastest-growing industry in the country with the support of the OPS and labour. The contributory pension scheme plan currently has over N9 trillion pension assets. This feat could not have been achieved without the support of the OPS,” Dahir-Umar said.
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Breakdown: According to the commission, the Federal Government’s securities took the lion-share of the investment as it received over N6.51 trillion, representing 72.9% of the total assets. Specifically, the Federal Government’s bond got N4,458,806.38 of the funds, representing 49.37% of the total assets while N1.94 trillion was invested in treasury bills (21.44%); N11.96 billion in Agency Bonds (NMRC & FMBN), (0.13%); N94.11 billion in Sukuk (1.04%) and N8.51 billion in Green Bonds, (0.09%).
The commission also said in line with the Multi-fund structure, Retirement Saving Account (RSA) Fund 1, witnessed N12.73 billion investment and RSA Fund 11, recorded N3.99 trillion investment, RSA Fund 111, saw N2.15 trillion investment while RSA Fund IV, recorded N732.13 billion investment.
Furthermore, the report showed that N596.61 billion, which was 6.54% of the funds, was invested in domestic ordinary shares while N62.59 billion, amounting to 0.69% was invested in foreign ordinary shares.
Similarly, while N144.31 billion (1.60%) was invested in state government’s securities, corporate bonds got N463.99 billion (5.4%); corporate infrastructure bonds received N8.64 billion, (0.10%); corporate green bonds N5.46 billion(0.06%); supra-national bonds got N5.37 billion (0.06%); local money market N874.39 billion (9.68%); commercial papers N64.46 billion (0.71%); banks – N809.94 billion (8.97%).
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Others were REITS – N14.27 billion, (0.16%); Foreign Money Market Securities – N22.54 billion (0.25%); private equity fund -N32.34 billion, (0.36%), Real Estate Properties – N231.37 billion (2.56%); infrastructure funds N29.40 billion, (0.33%) and cash & other assets N25.16 billion, (0.28%).