Data from the National Pension Commission (PenCom) indicates that Nigeria’s pension fund assets have increased to N19.787 trillion as of April 30, 2024.
This marks a growth of approximately 0.6% compared to the N19.669 trillion recorded as the net asset value in March 2024.
The figures were disclosed in PenCom’s monthly report for April 2024, which was seen by Nairametrics.
This steady increase highlights the resilience and growth of Nigeria’s pension fund sector despite economic challenges.
Portfolio allocation
According to the report, a detailed analysis of the pension fund portfolio shows a significant allocation to Federal Government of Nigeria (FGN) securities, which continues to dominate the investment landscape.
- Investments in FGN securities amount to approximately N12.396 trillion, representing 62.65% of the total net asset value (NAV).
- Additionally, pension funds have allocated N2.095 trillion to corporate debt securities and N1.952 trillion to money market instruments. These allocations reflect a diversified approach to managing pension assets, aimed at balancing risk and returns.
- However, the report also highlights a notable decline in investments in ordinary shares of local companies. The value of these investments dropped by 12.49%, from N2.082 trillion in March to N1.822 trillion in April.
Fund Allocation
Under the Multi-Fund Structure, Fund II, which is the default Retirement Savings Account (RSA) Fund, maintained the largest share of the Active RSA Funds allocation with N8.303 trillion, representing 41.96% of the total fund NAV.
Fund III also saw growth, rising by 0.83% from N5.173 trillion in March 2024 to N5.216 trillion in April 2024, maintaining its position as the second-largest allocation.
Fund IV posted N1.447 trillion in April 2024, representing a growth of 1.18% recorded the previous month of March 2024.
In terms of RSA membership, there was a slight increase of 0.33%, with the number of members rising from 10,280,956 in March 2024 to 10,315,034 in April 2024.
Optics
Pension Funds, Net Asset Values have risen from N14.9 trillion in December 2022 to N19.8 trillion or a whopping N4.8 trillion representing an 32.89% increase.
For context, between 2021 and 2022, Pension Fund Assets rose by just N1.57 trillion from N13.42 trillion to N14.99 trillion
The rise is likely linked to a combination of a surge in pension fund contributions and a rise in portfolio values.
For example, FGN Securities has seen its Net Asset Values rise from N9.64 trillion in 2022 to N12.06 trillion as of April 2024.
