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Pension assets rise to N4.9tn

By the end of May this year, the total funds under the
Contributory Pension Scheme rose to N4.9tn, statistics
obtained from the National Pension Commission have

According to the commission, N568.9bn (11.58 per cent)
and N72.97bn (1.49 per cent), of the funds have been
invested in domestic ordinary shares and foreign ordinary
shares, respectively, while N2.48tn and N601.65bn were
invested in Federal Government of Nigeria’s bonds and
Treasury Bills, making 50.64 per cent and 12.25 per cent of
the funds in that order.

PenCom stated that N166.2bn (3.38 per cent) and
N140.06bn (2.8 per cent) were invested in state
government securities and corporate debt securities,

The Pension Fund Operators invested N12.69bn (0.26 per
cent) and N580.09bn (11.8 per cent) in supra-national
bonds and local money market securities, respectively.

According to the PenCom report, N5.005bn (0.10 per cent)
and N21.5bn (0.44 per cent) of the funds were invested in
foreign money market securities and open/closed-ends
fund; while N209.12bn (4.26 per cent) and N12.07bn (0.25
per cent) were invested in real estate properties and private
equity funds, respectively.

The operators also invested N568.7m (0.01 per cent) in
infrastructure funds, while N34.2bn (0.7 per cent) of the
funds was invested in cash and other assets.

Funds under the CPS had risen from N4.54tn and N4.71tn
in January and February to N4.74tn and N4.86tn in March
and April, respectively.

The total assets rose from N4.05tn at the end of 2013 to
N4.6tn at the end of the 2014 financial period.

According to PenCom, pension funds will only be invested in
the bonds of states that are compliant with the CPS.

At the end of the 2014 financial year, it noted that about 24
states had adopted the CPS, while 12 others were at various
stages of implementing the scheme, with one state yet to
commence the process.

The Director-General, PenCom, Mrs. Chinelo Anohu-Amazu,
said the Pension Reform Act, 2014 re-enacted the
fundamental provisions of the repealed PRA 2004, which
included the establishment of the CPS, uniform standards
for pension administration as well as approving the
commission as the sole regulator and supervisor of pension
matters in Nigeria.

She added that there were new developments introduced by
the PRA 2014 such as the upward review of the minimum
rate of pension contributions and the sanctions/penalties
for infractions of the provisions of the Act.

Prior to the enactment of the PRA 2014, she said several
states of the federation had adopted the CPS and were at
various stages of implementing it.

Recent developments with regard to inadequate finances of
most states of the federation are a pointer to the urgent
need for the states to adopt the CPS, she said.
Anohu-Amazu added, “In our quest to assist the states in
guided implementation, PenCom has established functional
offices in the six geo-political zones, including Awka for the

“These offices have been equipped to provide the required
technical assistance to states and local governments in
their efforts to adopt and implement the CPS.”

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