Report: Pension assets to reach N19trn by end of 2024
Mrs. Aisha Dahir-Umar, AG D-G, Pencom

Adebayo Obajemu

Nigeria’s National Pension Commission (PenCom) has stated that the country’s total pension assets jumped to N10.8 trillion as of May 2020, after adding N330 billion from the preceding month.

In a published report Monday on the PenCom website, it was stated that the total number of Retirement Savings Account (RSA) holders had increased from N8.8 million as it was last reported, to more than 9 million as of May this year.

The report categorised the various asset classes in which the pension funds have been invested. For instance, a bulk of the funds (about N7.2 trillion representing 66.7%) was invested in Federal Government’s Securities. The table below contains the complete breakdown.

Meanwhile, PenCom’s Acting Director-General, Aisha Dahir-Umar, said pension fund managers have been very cautious about where they invest. She also offered further explanation, saying:

“Since the introduction of the Multi-Fund Structure that created four different funds, the investment of the funds has varied from one another. Fund 1 has a maximum limit of 30 percent, Fund II has a maximum of 25 percent and Fund IV allows maximum of five percent.

“The allowable exposures to variable income instruments have been designed such that Fund I has the highest allowable limit, followed by Fund II, III and IV. This reduces the risk and uncertainty of contributors in line with their ages.’’

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