Nigerian govt borrows N9.2trn from N14.5tn pension fund

The total pension assets under the Contributory Pension Scheme rose to N14.5 trillion as of the end of October 2022.

The National Pension Commission (NPC) revealed this in its latest figures published on its website and obtained by Ripples Nigeria on Sunday.

Breakdown of the pension funds show 63.22 percent of the fund had been borrowed by the Federal Government and invested in the FGN securities totaling N9.2 trillion during the period under review.

The Pension Fund Administrators also invested 10.46 percent or N828.16 billion of the fund in domestic ordinary shares, while 0.71 or N100.29 billion of the fund was invested in foreign ordinary shares.

Read also:Withdrawals from pension savings rise to N8.27bn

Other places Nigerian workers’ pension funds were invested in by pension fund administration include corporate debt securities of N1.52 trillion.

Investment in the Money market instrument stands at N2.17 trillion while N65.6 billion were invested in mutual funds.

According to the Pension Reform Act, the PFAs manage the funds which are in the custody of the Pension Fund Custodians.

The commission stated that it continued its consultative philosophy in the regulation and supervision of the industry.

According to PenCom, the risk-based examination approach was implemented as a way of promoting transparency and providing early warning signals as well as encouraging pension operators to regularly self-evaluate their positions.

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