Contributory Pension Assets Rise By N340bn
The total assets under the Contributory Pension Scheme gained N340bn in two months and rose to N13.76tn as of the end of February 2021.
The funds, which ended December 31, 2021 at N13.42tn, rose to N13.61tn as of the end of January 2022.
This was contained in the National Pension Commission’s latest report, titled ‘Unaudited report on pension funds industry portfolio for the period ended 28 February 2022; Approved Existing Schemes, Closed Pension Fund Administrators and RSA funds (Including unremitted contributions CBN & legacy funds).’
The data showed that N8.51tn of the total funds was invested in Federal Government securities, comprising bonds and Treasury Bills, in February.
Other investment portfolios where the funds were invested include domestic and foreign ordinary shares; corporate debt securities comprising corporate bonds, corporate infrastructure bonds, corporate green bonds, and supranational bonds.
PenCom also disclosed that the total number of workers with Retirement Savings Accounts rose slightly to 9,589,721 as of February ending from 9,529,127 as of end of December 2021.
The Pension Reform Act, which led to the CPS, was inaugurated in 2004, providing a contributory arrangement in which the employer and employee contribute to the workers’ RSAs.
Also, the Pension Fund Operators Association of Nigeria has said the CPS is helping Nigerian workers to save for retirement and provide funds for infrastructure development.
The operators urged workers to increase their statutory deductions, noting this would enable them to raise their aggregate savings balances over time.