Pension Assets Drops, Losses N52billion

The Contributory Pension Scheme has continued its downward trend lossing N52billion in February 2021.

Figures obtained from the National Pension Commission on its report titled ‘unaudited report on pension funds industry portfolio for the period ended 28 February 2021’ revealed this.

The report showed figures on Approved Existing Schemes, Closed Pension Fund Administrators and RSA funds (including unremitted funds).  The CPS introduced through the Pension Reform Act commenced in 2004.

According to the statistics, the pension assets ended December 2020 at N12.306tn and fell by N7bn to N12.299tn as of the end of January.

Latest figures from the commission showed the funds fell to N12.247tn in February.

The bulk of the funds were invested in the Federal Government’s securities. Other investment portfolios were domestic and foreign ordinary shares; corporate debt securities comprising corporate bonds, corporate infrastructure bonds, corporate green bonds and supra-national bonds.

Also, the funds were also invested in local money market securities consisting of bank placements, commercial papers and foreign money market securities.

The Pension Fund Administrators invested the rest in mutual funds comprising open/close-end funds, REITs, real estate properties, private equity funds, infrastructure funds, cash and other assets.

However, Contributors under the scheme rose slightly to 9.24 million in January from 9.22 million in December and  9.26 million in February.

Despite the negative impact of COVID-19 pandemic on the economy, the CPS assets rose by N2.1tn to N12.3tn as of 2020 from N10.2tn as of the end 2019.

Kehinde Ogunyale

Reporting on the data-driven economy, and investigations.

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