Investment in pension assets in FG Securities reaches 8.51 trn

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Pension fund operators have invested N8.51 trillion of total pension fund assets of N12.78 trillion in federal government securities, LEADERSHIP has learned.
N8.51 billion is the amount invested in FG securities since the creation of the Contributory Pension Plan (CPS), precisely from 2004 to July 2021.

The LEADERSHIP survey has shown that pension fund operators have always preferred federal government securities over other investment options because they are easy to recover while providing good returns on investments.

To this end, more than 70 percent of pension funds have so far been invested in these securities, as this has enabled the federal government to fulfill its civic responsibilities of paying wages, repairing damaged infrastructure and to embark on capital intensive projects. It also constitutes the bulk of local federal government borrowing.

A breakdown of the latest data from the National Pensions Commission (PenCom) shows that FG bonds have swallowed up 7.67 trillion naira of investment; investment in treasury bills amounted to 721.74 billion naira; agency bond 12.91 billion naira; Sukuk bonds, 85.09 billion naira and green bonds 12.88 billion naira.

Likewise, the country’s pension fund assets increased significantly to reach N12.78 trillion at the end of July 2021, from N120 billion, from the N12.66 trillion figure at the end of July 2021. end of June 2021.

This means that the pension fund’s assets gained 470 billion naira after falling from 12.3 trillion naira on December 31, 2020 to 12.780 billion naira in July 2021.

At the end of March 2021, assets stood at 12.34 trillion naira, increasing by 320 billion naira between April and July 2021.

Assets stood at 12.29 trillion naira in January, but fell to 12.24 trillion naira in February, due to the loss of investment, before picking up again in March 2021 to reach the aforementioned amount.

Investment income, according to the survey, has been instrumental in the continued growth of pension funds, despite the fact that most state governments do not pay their workers’ monthly pension contributions as they fall due.

Likewise, the huge increase, according to the results, was attributed to new pension contributions received, interest on fixed income securities and net realized on stocks and investments in mutual funds.

The Director General of the National Pensions Commission (PenCom), Ms. Aisha Dahir-Umar, said that the growth in the assets of the pension fund under the new pension scheme is an indication of the prudent and sincere management of the fund. pension by the pension operators and the regulator.

According to her, “the number of registered contributors under the CPS has risen to 9.38 million while pension fund assets have accumulated to 12.66 trillion naira as of June 30, 2021. Sustaining a trajectory consistent growth continues to justify the commission’s primary investment. philosophy of ensuring the security of pension fund assets.

Dahir-Umar added that the regulator will continue to offer policies that will improve the growth of pension assets as well as investment options that will ensure that assets are not depleted.


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