Data from the National Pension Commission (PenCom) reveals Nigeria’s pension fund assets rose to N19.531 trillion for the period that ended 31st January 2024.
This represents an increase of about 6.40% when compared to the N18.356 trillion that was reported as net asset value in December 2023.
This was contained in the commissions’ monthly report for January 2024 released by PenCom and seen by Nairmetrics.
Recommended reading: ‘Pension fund assets rise to N17.927 trillion as at November’23’ – PenCom
Details of the report
Portfolio Allocation
According to the report, the total pension fund net asset value rose to N19.531 trillion in January compared to N18.356 trillion reported a month earlier.
- A closer look at the data reveals investment in FGN securities continues to dominate portfolio allocation with about N12.13 trillion or 62.15% of total net asset value (NAV).
- Pension Funds also allocated N2.169 trillion to Corporate Debt Securities and N1.711 trillion to Money Market Instruments.
- Investments in ordinary shares of local companies rose by 22.92% to N1.931 trillion from N1.571 trillion in December.
Fund Allocation
Fund II, which is the default RSA Fund under the Multi-Fund Structure, maintained the largest share of the Active RSA Funds allocation with N8.155 trillion or 42% of the total fund NAV.
- Fund III also rose by 2.27% from N4.942 trillion to N5.054 trillion maintaining its second position for fund allocation.
- Meanwhile, RSA membership for January 2024 rose by 0.32% to 10,223,672 from 10, 191,400 members in December 2023.
Optics
Pension Funds, Net Asset Values have risen from N14.9 trillion in December 2022 to N19.5 trillion or a whopping N4.6 trillion representing a 30.87% increase.
- For context, between 2021 and 2022, Pension Fund Assets rose by just N1.57 trillion from N13.42 trillion to N14.99 trillion
- The rise is likely linked to a combination of a surge in pension fund contributions and a rise in portfolio values.
- For example, FGN Securities has seen its Net Asset Values rise from N9.64 trillion in 2022 to N11.83 trillion as of January 2024.