Assets under the Contributory Pension Scheme in Nigeria experienced a significant boost, surging by approximately N2tn in the first half of 2023, as reported by the National Pension Commission (PenCom). The unaudited report on pension funds industry portfolio for the period ending 30th June 2023 revealed that the assets increased from N14.99tn in December 2022 to N16.76tn in June 2023.
The majority of the assets were invested in the Federal Government’s securities, witnessing a rise from N9.64tn to N10.86tn. This growth demonstrates the continued confidence in the government’s securities by pension fund managers.
Furthermore, the number of Retirement Savings Accounts (RSAs) also experienced an increase, growing from 9,862,129 in December 2022 to 10,009,049 by the end of June 2023. This rise in RSA membership indicates a growing participation in the pension scheme by Nigerian workers, aiming to secure their financial future.
Apart from investments in Federal Government securities, the pension funds were diversified into other portfolios, including domestic and foreign ordinary shares, and corporate debt securities. The latter comprised corporate bonds, corporate infrastructure bonds, corporate green bonds, and supranational bonds.
The surge in pension assets highlights the continued growth and stability of Nigeria’s pension industry, providing retirees and future pensioners with enhanced financial security and prosperity. The success of the Contributory Pension Scheme further reinforces the significance of long-term planning and investment in ensuring a sustainable retirement future for Nigerian workers.