11-29-2017, 04:01 PM
Nigeria’s pension fund assets under the Contributory Pension Scheme (CPS) have hit N7.164 trillion– as at September from the N7.094 trillion recorded in August.
The increase in the assets represents a 21.34 percentage growth and N1.26 billion increase.
But despite this achievement, reports show that a lot may still be wrong with investing the fund for Nigeria’s infrastructural development.
Investigation by The Nation showed that although the fund is not growing as projected by the commission owing to recession, the pension fund may in few years reach N10 trillion mark going by the projected average growth of N30 billion.
This was shown in the September Summary of Pension Fund Assets Report released by the National Pension Commission (PenCom).
According to the report, only N5.235 billion is recorded as infrastructure fund, a wide gap from the Federal Government Bonds which received the larger chunk of the fund.
The report showed that a total of N3.874 trillion out of the total N7.16 trillion was invested in FGN bonds in the period under review.
Treasury bill received the second largest chunk of the fund with N1.27 trillion. The investment in this area is lower than the N1.31 trillion in the period under review.
State government bonds, however, got N155.7 billion, Agency Bonds (NMRC and FMBN) got N5.85 billion, Corporate Debt Securities got N264.7 billion while Supra-National Bonds got N11.73 billion
The pattern of investment shows that Pension Fund Administrators (PFAs) have great confidence in FGN Securities.
In the Local Money Market, a total of N489.57 billion was invested in the bank while N55.417 billion was invested in commercial papers.
Under Mutual funds, infrastructure funds got N5.235 billion, cash and other assets got N27.33 billion; and real estates got N208.71 billion.
The sum of N501.43 billion representing 7.06 per cent of the fund was invested in local money market securities. The fund was invested in banks as fixed deposit and commercial papers. The percentage invested this year in this area dropped from 7.5 per cent to 7.06 per cent between August 2016 and August 2017.
source: http://thenationonlineng.net/pension-fund-hits-n7-2tr
The increase in the assets represents a 21.34 percentage growth and N1.26 billion increase.
But despite this achievement, reports show that a lot may still be wrong with investing the fund for Nigeria’s infrastructural development.
Investigation by The Nation showed that although the fund is not growing as projected by the commission owing to recession, the pension fund may in few years reach N10 trillion mark going by the projected average growth of N30 billion.
This was shown in the September Summary of Pension Fund Assets Report released by the National Pension Commission (PenCom).
According to the report, only N5.235 billion is recorded as infrastructure fund, a wide gap from the Federal Government Bonds which received the larger chunk of the fund.
The report showed that a total of N3.874 trillion out of the total N7.16 trillion was invested in FGN bonds in the period under review.
Treasury bill received the second largest chunk of the fund with N1.27 trillion. The investment in this area is lower than the N1.31 trillion in the period under review.
State government bonds, however, got N155.7 billion, Agency Bonds (NMRC and FMBN) got N5.85 billion, Corporate Debt Securities got N264.7 billion while Supra-National Bonds got N11.73 billion
The pattern of investment shows that Pension Fund Administrators (PFAs) have great confidence in FGN Securities.
In the Local Money Market, a total of N489.57 billion was invested in the bank while N55.417 billion was invested in commercial papers.
Under Mutual funds, infrastructure funds got N5.235 billion, cash and other assets got N27.33 billion; and real estates got N208.71 billion.
The sum of N501.43 billion representing 7.06 per cent of the fund was invested in local money market securities. The fund was invested in banks as fixed deposit and commercial papers. The percentage invested this year in this area dropped from 7.5 per cent to 7.06 per cent between August 2016 and August 2017.
source: http://thenationonlineng.net/pension-fund-hits-n7-2tr