PFAs’ Investment In Treasury Bills Falls, Real Estate Suffers As Pension Assets Hit N14.42trn

The pension industry’s total investment in federal government treasury bills and other securities rose to N9.19 trillion at the end of September 2022, the National Pension Commission (PENCOM) reveals in  its Q3 data.

Prime Business Africa learnt that total investment in federal government securities increased by N180 billion, having closed the second quarter, ended June 2022, with N9.01 trillion. 

Also, corporate debt securities recorded a hike of 25.03 per cent in investment, as it rose to N1.49 trillion at the end of the third quarter of September 2022. 

Government’s securities continue to dominate the investments into which Nigerian Pension Fund Administrators (PFAs) disburse money, accounting for 64 per cent of the total assets under management. 

This is driven by the requirement that most of the pension funds be invested in government securities due to its limited risk. 

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In all, N14.42 trillion is the current total pension assets under the management of PFAs as at the end of September this year, up from N14.27 trillion reported for the second quarter. 

A breakdown of the pension funds investment showed that N8.8 trillion is tied with the federal government treasury bills and  bonds as of September 2022, rising from N8.31 trillion recorded in Q2. This is a difference of N490.66 billion.

However, government treasury bills failed to draw much interest, as the National Pension Commission reported that investment in the bills dropped from N475.6 billion Q2 to N185.87 billion in September. 

Meanwhile, apart from the fall in treasury bills, real estate investments by Pension Fund Administrators declined from the N236.2 billion recorded in the second quarter of this year, to N229.37 billion as of September 2022.