Pension fund hits N9.44 trillion

21 Oct 2019

The Nation

Pension fund hits N9.44 trillion

Nigeria has grown its pension fund to the tune of N9.44 trillion. This is according to the pension monthly summary report for August released on October 15, 2019. The fund, under the Contributory Pension Scheme (CPS) with the supervision of the National Pension Commission (PenCom), has continued on an upward trend since 2007. The Pension Fund Administrators, however, invested N6.81 trillion in Federal Government securities, representing 72.2 per cent of the total fund. Out of the N6.81 trillion, N4.52 trillion was invested in Federal Government bonds, N2.2 trillion in treasury bills, N70 billion SUKUK, N13 billion in green bonds and N9.95 billion in agency bonds. The local money market acuities received N1.05 trillion investments from the pension managers. Under the local money market, banks got the highest chunk of N917 billion; N140 billion was invested in commercial papers. The managers, on the other hand, invested a minute amount of N32 billion in private equity fund, and N30.7 billion in an infrastructure fund. PenCom Acting Director-General, Mrs. Aisha Dahir-Umar, said a review of the Pension Reform Act (PRA) 2004 resulted in a sustainable pension system for retirees. She said: “In the public sector, the Defined Benefits Scheme was faced with the problem of huge pension liabilities arising from lack of adequate and timely budgetary provisions as well as increases in salaries and pensions.


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