Nigeria’s contributory pension assets have experienced a significant growth of N4.26 trillion between October 2023 and October 2024, representing a 24.14% increase.
According to the latest data from the National Pension Commission (PenCom), the value of pension assets stood at N21.92 trillion by the end of October 2024, up from N17.66 trillion during the same period in 2023.
PenCom’s monthly report highlights that while the overall value of pension assets rose sharply, the asset mix composition remained largely unchanged, with the majority of assets still concentrated in government securities.
Notably, investments in Federal Government securities grew from N11.42 trillion in 2023 to N13.57 trillion in 2024, reflecting a continued preference for secure, government-backed investments.
Other notable increases include funds invested in corporate debt securities, which rose to N2.29 trillion, and money market instruments, which reached N2.20 trillion.
However, investments in mutual funds saw a slight decline, dropping by 5.04% from N112.52 billion in 2023 to N106.85 billion in 2024.
PenCom also reported an increase in the number of retirement savings accounts (RSAs) over the past year, with an additional 394,679 accounts, bringing the total number of RSAs to 10,535,608.
On a month-on-month basis, pension assets grew by N541 billion, from N21.38 trillion in September 2024 to N21.92 trillion in October 2024.
In a related development, PenCom lifted the suspension it had previously placed on pension fund administrators (PFAs) regarding investments in commercial papers.
The suspension was removed following the Securities and Exchange Commission’s (SEC) development of new rules to regulate the issuance of commercial papers. The amendment aims to bring non-bank Institutional Portfolio Administrators (IPAs) under regulatory oversight and ensure capital market stability.
PenCom has urged pension fund administrators to conduct thorough legal and financial due diligence on all commercial paper investments, in line with the commission’s regulations.
These developments reflect the continued growth of Nigeria’s pension industry, with PenCom’s oversight aimed at maintaining stability and ensuring that pension funds are invested prudently to benefit the nation’s retirees in the future.