Pension assets hit N11.08tn

Nigeria’s total pension assets climbed to N11.08 trillion in June, 2.6% higher than the N10.8 trillion recorded the month before despite the impact of the coronavirus pandemic on the economy.

The National Pension Commission (PenCom)’s report, ‘Summary of Pension Fund Assets as at 30 June 2020’, obtained on Thursday revealed that N7.45 trillion of total pension funds had been invested in Nigerian government’s securities among which are FGN bonds, agency bonds, treasury bills, sukuk and green bonds.

Government securities account for over 70% of the pension industry’s asset allocation.

Risk rating firm, Agusto & Co., said on Tuesday it expected contributory pension in the country to grow by 8.5% this year regardless of the economic shocks of COVID-19.

PenCom also invested the funds in portfolios like private equity funds, real estate investment trusts, infrastructure funds, cash and other assets.

The commission said in a recent circular it would open the transfer window that would enable employees to transfer their retirement savings accounts to another Pension Fund Administrator (PFA) of their choice.

Read also: Pension assets to grow by 8.5% this year –Report

According to PenCom, opening the transfer window will enhance full and equitable pension assets portability in the industry, promote healthy competition among PFAs as well as boost service delivery to RSA holders.

It noted that contributors are permitted under Section 13 of the Pension Reform Act 2014 to change their PFAs via a transfer window in as much as it is done not more than once in a year.

‘The National Pension Commission has being working assiduously to actualise the provisions of Section 13 of the Pension Reform Act, 2014.

‘Preparatory to the opening of the transfer window, the commission developed and deployed the Enhanced Contributor Registration System in September 2019,’ the report said.