NIGERIAN PENSION FUNDS SURGE BY 18% TO N18.3 TRILLION IN 2023

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Nigeria’s pension fund assets have surged to N18.35 trillion as of December 2023, marking a notable increase from N14.99 trillion recorded in December 2022. The growth, totaling N3.36 trillion or 18%, represents one of the highest since the inception of the Contributory Pension Scheme (CPS) about 20 years ago.

Further analysis reveals that the funds had grown by N1.56 trillion or 10% in 2022, rising from N13.42 trillion in 2021, and by N1.1 trillion or 8.3% in 2021 from N12.30 trillion recorded in 2020. In 2020, pension assets rose by 16.9% or N2.08 trillion from N10.21 trillion posted in 2019.

Pension Fund Administrators (PFAs), supervised by PenCom, have allocated about 70% of the fund into Federal Government securities, totaling N11.92 trillion. State Government Securities received N271.35 billion, while corporate debt securities received N1.90 trillion. PFAs invested N1.67 trillion in money market instruments, N1.57 trillion in domestic ordinary shares, and N202.18 billion in foreign ordinary shares.

The launch of the NGX Pension Broad Index by the Nigerian Exchange (NGX) is poised to enhance opportunities for pension investments in quoted equities. The index, comprising 84 equities, aligns with pension industry regulations and aims to guide investment decisions while fostering transparency and compliance within the Nigerian capital market.

Mr. Jude Chiemeka, Acting CEO of NGX, highlighted the collaborative effort between NGX and PenCom in creating value for investors. He underscores the index’s robust performance since its launch and its role in enhancing the stability of Nigeria’s pension industry.

Chiemeka’s remarks highlighted the credibility of the NGX Pension Broad Index as a reliable benchmark for evaluating equity performance within the pension industry. The index’s well-diversified composition across key sectors further solidifies its importance in guiding investment decisions.

 

 

 

 

 

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