N5.03tn of N8.64tn pension funds invested in FGN securities

Matthew Otoijagha

Pension Fund Administrators (PFAs) have invested N5.03 trillion out of the N8.64 trillion pension assets in Federal Government’s securities, as at the end of December, 2018, the National Pension Commission (PenCom), has said.

Data obtained from PenCom stated that 73.09 per cent of the pension funds had been invested in the Federal Government of Nigeria’s securities.

Investments in FGN securities include: N4.53 trillion amounting to 52.49 per cent in Bonds; N1.67 trillion in Treasury Bills (19.37 per cent); N11.57 billion in Agency Bonds (NMRC & FMBN), (0.13 per cent); N86.54 billion in Sukku (1.00 per cent) and N7.23 billion in Green bonds, (0.08 per cent)

PenCom noted that the number of Retirement Savings Accounts (RSAs) holders at the period was 8.41 million, which consist, 5.93 million males, 2.47 million females from the public and private sectors.

It stated that N606.19 billion, which is 7.02 per cent of the funds, was invested in domestic ordinary shares; while N55.86 billion, amounting to 0.65 per cent in foreign ordinary shares.

The pension industry regulator maintained that pension operators invested N138.71 billion (1.61 per cent) in State Government’s Securities; Corporate bonds got N461.16 billion (5.34 per cent); Corporate Infrastructure bonds, received N7.52 billion, (0.09 per cent); Supra-National Bonds got N6.91 billion (0.08 per cent); commercial papers, N82.81 billion (0.96 per cent); Banks, N626.33 billion (7.25 per cent).

Others are, Reits, N15.54 billion, (0.18 per cent) Foreign Money Market Securities, N3.21 billion, (0.04 per cent); private equity fund, N31.35 billion, (0.36 per cent), Real Estate Properties, N229.71 billion, (2.66 per cent); infrastructure funds, N18.51 billion, (0.21 per cent) and cash & other assets, N32.32 billion, (0.37 per cent).

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