Pension assets now worth N17tr, up nearly 9%
By Jeph Ajobaju, Chief Copy Editor
Contributory Pension Scheme (CPS) is now worth N17.7 trillion, the National Pension Commission (PenCom) has disclosed.
PenCom said pension assets grew to N16.7 trillion in May then rose 1.8 per cent from N16.76 trillion in June to N17.7 trillion in July.
Pension funds allocated N1.8 trillion to corporate debt securities and N1.58 trillion to money market instruments, and investment in ordinary shares of local companies rose from N1.268 trillion in June to N1.338 trillion in July.
Portfolio allocation to Federal Government of Nigeria (FGN) securities was N10.8 trillion in June or 64.6 per cent of total Net Asset Values (NAVs) and Fund II.
Fund II is the default Retiree Savings Account (RSA) Fund under the Multi-Fund Structure, and it maintained the largest share of the Active RSA Funds allocation with N7.3 trillion or 43 per cent of the total fund NAV.
PenCom said this shows investment in FGN securities continues to dominate portfolio allocation with about N11 trillion or 64.7 per cent of total net asset value.
It added RSA holders increased from 10, 009,049 in June to 10, 025,314 in July, per The Guardian.
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Pension schemes exclude 90% of Nigerians
However, only 10 per cent of Nigerians (22 million) have access to pension schemes, according to Norrenberger Pensions Managing Director Hamisu Idris; which means most of the remaining 198 million people live a hardscrabble life after retirement.
Idris disclosed this in July in Abuja at a retirement planning seminar organised to empower individuals nearing retirement and empower retirees for a financially-secure future.
“80 per cent of Nigerian retirees depend solely on their monthly pension for survival, many of whom live in constant fear of financial crisis based on delayed payments.
“This highlights the crucial role pension plays in their livelihoods. Moreso, only 10 per cent of the Nigerian population has access to pension schemes,” Idris said
The seminar featured a robust financial literacy session covering key segments such as financial planning, insurance, lifestyle adjustment, legal and estate planning.
Attendees engaged Norrenberger’s subject matter experts on various themes in retirement planning and also explored other areas involving the profitability of their pension savings.
“In line with our mission to unlock opportunities in the society,” Idris explained, “we established this event to embolden individuals with the necessary knowledge to maximize the profitability of their pension savings and ultimately secure a comfortable retirement.”
Norrenberger Asset Management Business Head, Abigail Utomi, expressed enthusiasm about the initiative and its multiple benefits to the attendees and the wider society.
She emphasised the critical role events of this nature play in piloting financial literacy and security for senior citizens and positively impacting Nigeria’s capital market and economy.
“We continue to seek ways to deepen the market, grow our reach and expand our contribution to Nigeria’s GDP,” Utomi said.