PFAs invest N636.9bn pension funds in banks

Pension fund administrators in the country have invested a total of N636.99bn out of the total pension funds in their custody in banks as of the end of November 2018.

This figure represents 7.49 per cent of the funds managed by the pension operators.

According to figures from the National Pension Commission (PenCom) total pension funds under the review period stand at N8.49 trillion.

N15.7bn or 0.19 per cent of the pension assets was invested in mutual funds, while N17.51bn or 0.21 per cent of the funds was invested in cash and other assets.

Speaking on the development, the President, Pension Fund Operators Association of Nigeria, Mrs Aderonke Adedeji, explained that the issue of the role of pension funds in economic development had moved into the focus of public attention, particularly with regard to Nigeria’s growing need for long term capital.

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According to her, the successful mobilisation of pension fund assets and its contributions to the economic growth of any nation were essential policy objectives.

“For the first time, our country can now boast of a long term funding base and the impact to date has included the funding of the government and government projects, development of the capital market as well as increased foreign development inflows,” she said.

She however said there was need for caution in view of the recent agitations to access the funds for infrastructure.

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