Banks borrow N764.32bn from pension fund

Nigerian banks borrowed N764.32bn from the total pension funds under the Contributory Pension Scheme as of the end of September this year.

Figures obtained by The PUNCH correspondent from the National Pension Commission revealed that the amount translated to 19.16 per cent of the total pension assets, which stood at N8.34tn.

According to the report, the amount the Pension Fund Administrators invested in the banking sector was N409.48bn in January 2017.

Under the Pension Reform Act, the PFAs are required by law to administer the funds, while the Pension Fund Custodians keep custody of the assets.

The commission said the operators had invested a substantial part of the pension funds in the Federal Government’s bonds, treasury bills and state government securities.

The PUNCH, November 21, 2018

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