PFAs reduce pension funds investment in banks to N1.6trn

The Pension Funds Administrators reduced the funds under the Contributory Pension Scheme that was invested in fixed deposits and bank acceptance to N1.6trillion in February.

This was as the total funds under the scheme hit N15.49trillion in the period under review, according to the National Pension Commission.

PenCom disclosed this in its unaudited report on the pension funds industry portfolio for the period ended February 28, 2023.

The data provided information on the approved existing schemes, Closed Pension Fund Administrators, and Retirement Savings Funds (including unremitted contributions at the Central Bank of Nigeria and legacy funds). At the end of December 2022, the PFAs had invested N1.94trillion in fixed deposits and bank acceptance.

The Commission had, in its amended investment regulation, highlighted the requirements for investing the funds in line with the provisions of the Pension Reform Act, of 2014. It said the purpose of the regulation was to provide uniform rules and standards for the investment of pension fund assets.

According to the regulation, pension fund custodians must only take written instructions from licensed PFAs with respect to the PFAs’ investment and management of pension fund assets held in the custody of the PFCs on behalf of the contributors.