Nigeria’s Pension Fund Assets Surge To N17.658trn In October 2023

Pension Fund Administrators Allocate N130.18bn To Infrastructure Investment

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Pension Fund Administrators (PFAs) have allocated a sum of N130.18 billion from funds under the Contributory Pension Scheme (CPS) towards infrastructure investments by the end of September 2023.

This was disclosed in the unaudited report on the pension funds industry portfolio for the same period.

“The purpose of the regulation is to provide uniform rules and standards for the investment of pension fund assets,” stated figures obtained from the National Pension Commission.

According to the commission’s amended investment regulation, there are stringent requirements ensuring the alignment of these investments with the provisions of the Pension Reform Act of 2014.

As per the regulation, strict guidelines are in place dictating the handling of pension fund assets. Pension Fund Custodians (PFCs) are only allowed to take written instructions from licensed PFAs concerning the investment and management of pension fund assets held in their custody, except for permissible investments made outside Nigeria.

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The regulation also specifies that PFAs should not outsource the investment or management of pension fund assets to third parties except in specific cases, such as open/close-end/hybrid funds and specialist investment funds, as permitted by the regulation.

This revelation underscores the commitment of PFAs to not only diversify but also invest responsibly and in compliance with established guidelines, aiming to safeguard pension funds while contributing to national development through infrastructure investments.

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Emmanuel Ochayi
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