The value of pension funds in Nigeria rose by 2.23% month-on-month, reaching N20.23tn in May 2024.
According to the National Pension Commission’s report, the Pension Funds Administrators (PFAs) heavily invested in government securities, which constituted 63.22% of the total funds.
Investment in government securities increased to N12.79tn from N12.40tn in April.
The PFAs’ preference for government securities and money market instruments is attributed to the Central Bank of Nigeria’s high benchmark interest rates aimed at reducing market liquidity.
Despite the high-interest environment, pension fund investments in the money market dipped slightly to N1.93tn from N1.95tn in April.
Mutual fund investments saw increased interest in May, while overall pension funds appreciated by N1.87tn in the first five months of the year.
The Retired Savings Account membership grew by 356,795, reaching 10,351,624.
Meanwhile, the National Insurance Commission ordered African Alliance Insurance Plc to settle outstanding claims due to increased complaints from annuitants and claimants.
The regulator demanded a turnaround plan from the company and warned of potential action if timelines are not met.