Nigeria’s pension assets surpass N17.67trn

By Sodiq Adelakun

Nigeria’s pension assets managed by Pension Fund Administrators (PFA’s) have reached N17.67 trillion at the end of July 2023, according to data from the National Pension Commission (PenCom).

This marks an increase from N16.11 trillion in May. The number of registered contributors has also risen to 10,009 as of the end of July.Out of the total assets under management (AUM), the PFA’s have invested N11.03 trillion, or 60.20 percent, in Federal Government Securities.

Specifically, FG bonds account for N10.57 trillion of the funds. Money market instruments make up N1.58 trillion of the AUM, while domestic ordinary shares account for N1.27 trillion.

The audited full-year financial results of the PFAs for 2022 reveal that Stanbic IBTC Pension Managers leads the table with an AUM of N4.38 trillion, followed by ARM Pensions with N1.053 trillion.

Premium Pensions’ AUM at the end of 2022 was N860.43 billion, Access Pensions had N836.24 billion, NPF Pensions had N827 billion, and Trustfund Pensions had N702.55 billion.

On the lower end of the table, Radix Pensions had N6.69 billion, followed by Guaranty Trust Pensions with N30.23 billion, Norrenberger Pensions with N91.74 billion, and Veritas Glanvills Pensions with N118.78 billion.Kasim Garba Kurfi, the managing director/CEO of APT Securities and Funds Limited, highlighted the significant contribution of pension funds, which now exceed N16 trillion, to various sectors of the economy.

He mentioned that these excess funds seek alternative investment opportunities such as FGN SUKUK, GREEN BOND, and Infrastructure Bond. Kurfi emphasised that pensions ensure that every worker receives their retirement benefits on time, encourage workers to save for future liabilities and old age, provide long-term finance for the real sector, and stimulate the development of the capital market.