As of July 2023, Nigeria’s pension assets have risen to N17.01 trillion, showcasing a significant increase from N16.76 trillion in June 2023. During this period, 16,265 new subscribers joined the Contributory Pension Scheme (CPS), bringing the total to 10.03 million participants. The National Pension Commission (PenCom) reported that out of the pension fund assets, N11.03 trillion was invested in Federal Government of Nigeria (FGN) securities. This growth is attributed to various factors including new contributions, interest from fixed income securities, and income from equities and mutual fund investments.
Additional Information: Within the N11.03 trillion invested in FGN securities, N10.57 trillion was allocated to Federal Government bonds, N198.81 billion to treasury bills, N10.98 billion to agency bonds, N154.75 billion to Sukuk bonds, and N92.37 billion to green bonds. The increase in pension assets is seen as a testament to the prudent management of the funds by both pension operators and regulators. There have been no reported cases of mismanagement under the new Contributory Pension Scheme (CPS).
Analysis: The substantial growth in Nigeria’s pension assets is a positive sign for the country’s pension system. It reflects effective management and regulatory oversight. The allocation of a significant portion of the fund to FGN securities indicates a level of trust in government-backed investments. Continued vigilance and adherence to regulations will be crucial to maintaining this positive trajectory and ensuring the safety of pension fund assets.
