Total pension contributions remitted to individual Retirement Savings Accounts (RSAs) in Q3 2021 stood at N272.15 billion, according to National Pension Commission (PenCom) third quarter 2021 report.
The report shows that the public sector accounted for N170.96 billion (62.82%), while the private sector contributed N101.19 billion or (37.18%) while the cumulative pension contributions from inception to the end of the third quarter of 2021 amounted to N7.37 trillion, which is an increase from N7.10 trillion in the previous quarter.
The aggregate pension contributions of the public sector increased from N3.65 trillion to N3.82 trillion as at the end of Q3 2021. Similarly, the aggregate pension contributions of the private sector also increased from N3.46 trillion to N3.56 trillion as at the end of Q3 2021.
Key highlight of the report
- The total value of Pension Fund assets as at 30 September 2021 was N13 trillion. The amount comprised of N9.14 trillion in RSA’ Active’ Funds (RSA Funds I, II III and V); N1.05 trillion in RSA Retiree Fund; N1.48 trillion in CPFAs; N1.31 trillion in Approved Existing Schemes (AES) Funds and N7.80 billion for RSA Fund VI, Active and Retiree.
- Pension Fund Assets were mainly invested in Federal Government Securities (FGN), accounting for 63.25% of total assets. The composition of investments in FGN Securities were as follows: FGN Bonds: 92.20%; Treasury Bills: 3.45%; and Agency Bonds, Sukuk and Green Bonds accounted for 1.29%.
- The industry Net Asset Value (NAV) at reporting date increased by 2.72% (N343.99 billion) to N13 trillion compared to a NAV of N12.66 trillion as at 30 June 2021. The growth in Q3 2021 was slightly higher than the growth of N317.21 billion (2.57%) recorded in Q2 2021, Inflows of N7.80 billion were observed in Fund VI (ethical Fund), which commenced in Q3 2021.
- The value of investments in quoted domestic ordinary shares stood at N873.49 billion (6.72% of total assets under management), indicating an increase of N30.29 billion (3.59%) compared to the N843.20 billion invested in the asset class as at 30 September 2021.
- The increase in the value of investments in domestic quoted equities was primarily due to the appreciation in the prices of some stocks during the reporting period, as the Nigerian Stock Exchange Pension Index (NSE-PI) further appreciated by 6.10% in Q3 2021 after an 8.90% appreciation in Q2 2021.
- The value of investments in FGN Securities decreased by N252.24 billion (2.98%) to N8.22 trillion as at 30 September 2021 from N8.47 trillion as at 30 June 2021. The decrease in the value of investments in FGN Securities was majorly due to matured investments in Treasury Bills deployed to other asset classes during the quarter.