N6.28trn pension funds invested in federal govt securities

Matthew Otoijagha

Pension Fund Administrators (PFAs) have invested N6.28 trillion out of the N7.41 trillion pension assets in Federal Government’s securities, as at the end of November 2017, the National Pension Commission (PenCom), has said.

Data obtained from PenCom stated that 70.67 per cent of the pension funds had been invested in the Federal Government of Nigeria’s securities. Investments in FGN securities include: N4.02 trillion amounting to 54.30 per cent in Bonds; N1.21trillion in Treasury Bills (16.29 per cent); N5.99 billion in Agency Bonds (NMRC & FMBN), (0.08 per cent) and N55.69 billion in Sukkuk.

The data further revealed that N662.72 billion, which is 8.95 per cent of the funds, was invested in domestic ordinary shares; while N102.89 billion, amounting to 1.39 per cent in foreign ordinary shares.

Pension operators invested N148.21 billion (2.00 per cent) in State Government’s Securities; Corporate Debt Securities got N255.21 billion (3.44 per cent); Supra-National Bonds got N11.33 billion (0.15 per cent); commercial papers, N44.59 billion (0.60 per cent); while Banks, N564.68 billion (7.62 per cent).

Others are, Reits, N15.60 billion, (0.21 per cent) Foreign Money Market Securities, N31.77 billion, (0.43 per cent); private equity fund, N23.99 billion, (0.32 per cent), Real Estate Properties, N224.72 billion, (3.03 per cent); infrastructure funds, N6.07billion, (0.08 per cent) and cash & other assets, N15.35 billion, (0.21 per cent).

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