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Nigeria’s Pension Fund Assets Hit N11trn In Q2 2020

The total pension fund assets in Nigeria hit N11.09 trillion in the Second Quarter of 2020, according to the National Pension Commission (PenCom)’s report.

The Commission’s Acting Director-General, Aisha Umar-Dahir, while making the disclosure, said that the Pension Fund Administrators (PFAs) invested about N7.43 trillion in Federal Government Securities.

This represents 67 percent of the N11.09 trillion pension fund assets.

Umar-Dahir explained that the 67 percent investment was traded with an allocation of 57 percent in FGN Bonds, nine percent in Treasury Bills, one percent in Sukuk Bonds, while less than one percent was allocated to Agency Bonds and Green Bonds.

She said the value of investments in Domestic Quoted Ordinary Shares was N524.77 billion, which represents 5 percent of the assets under management as at June 30, an increase of N82.82 billion or 18.74 per cent compared to the value of N441.94 billion as at March 31, 2020.

According to her, the increase in the value of investments in domestic quoted equities, was basically due to the appreciation of some stocks prices during the reporting period, as the Nigerian Stock Exchange All Share Index (NSE-ASI) appreciated by 15.05 per cent from 21,300.47 basis points as at March 31, 2020 to 24,479.22 bps as at June 30, 2020.

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Dahir-Umar stated that the value of investments in FGN Bonds increased by N706.41 billion, or 12.60 per cent, FGN Sukuk by N27.43 billion and Agency Bonds by N0.52 billion, while investments in Treasury Bills decreased by N297.53 billion or 22.58 percent.

She attributed the reduction in the value of the Treasury Bills to maturities and reallocation to other asset classes, mainly FGN Bonds and other Money Market Securities.

Umar-Dahir added that the total value of pension fund assets based on unaudited valuation reports grew from N10.33 trillion as at March 2020 to N11.09 trillion as at June, 2020, representing a growth of 7.36 per cent, noting that the growth was mainly due to market valuation of quoted equities.

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