Emmanuel OchayiAccording to the latest data from the National Pension Commission (PenCom) monthly report for October 2023, Nigeria’s pension fund assets skyrocketed to N17.658 trillion by the end of October.
This surge represents a 1.78% increase from the N17.349 trillion recorded in September 2023.
In a statement sent to Prime Business Africa, the spokesperson for PenCom, Ms. Adeola Johnson, said: “The growth in pension fund assets underscores a steady trajectory of robust investment in various sectors, showcasing a solid foundation for financial stability and retirement security for Nigerians.”
The report delves into the specifics, revealing intriguing insights into the allocation of these funds. Notably, investments in Federal Government of Nigeria (FGN) securities continued to dominate the portfolio allocation, accounting for 64.67% of the total net asset value (NAV) at about N11.419 trillion.
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Moreover, there was a noteworthy increase in investments in corporate debt securities and money market instruments, signifying diversified investment strategies among pension funds. Investments in local companies’ ordinary shares also witnessed a positive uptick, rising by 3.17% to N1.430 trillion from N1.386 trillion in September.
The allocation across various funds under the Multi-Fund Structure also demonstrated intriguing trends. Fund II, designated as the default RSA Fund, maintained the lion’s share of the Active RSA Funds with N7.581 trillion, representing 43% of the total fund NAV.
Meanwhile, Fund III experienced a notable 1.62% increase, reaching N4.831 trillion.
It’s worth noting that the growth in RSA membership, which surged to 10,140,929 in October 2023 from 10,025,314 members in July 2023, reflecting a 1.15% rise.
This surge in pension fund assets, as revealed in the report, outlines an increase from N14.9 trillion in December 2022 to N17.7 trillion by October 2023—an astounding N2.8 trillion surge, marking an 18.79% increase.
This upward trajectory could be attributed to a combination of amplified pension fund contributions and a surge in portfolio values.
In particular, the colossal surge in FGN Securities’ Net Asset Values, from N9.64 trillion in 2022 to N11.19 trillion as of October 2023, underlines the substantial growth experienced within this investment avenue.
The burgeoning pension fund assets signal an encouraging trend for Nigeria’s financial landscape, underscoring a robust growth trajectory and a promising outlook for the country’s pension industry.
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