The Contributory Pension Scheme’s asset rose from N13.76tn as of the the end of February 2022 to N15.45tn February 2023 which account for a N1.68tn increase in one year.
PenCom made this disclosure in its unaudited report on the pension funds industry portfolio, accessed by The Punch. This report covers the period up until February 28, 2023.
The data contained in the report focuses on the approved schemes that are currently in place, the Closed Pension Fund Administrators, and the Retirement Savings Funds.
This also includes information on unremitted contributions that are held at the Central Bank of Nigeria, as well as any legacy funds.
The report indicates that during the period under review, there were a total of 9,919,281 Retirement Savings Accounts in existence.
The Director-General, PenCom, Aisha Dahir-Umar, who spoke about the released fourth quarter report said, “I am also delighted to mention that despite the overwhelming head-winds in the global economic climate and the country’s challenging macroeconomic environment, the Pension Fund Assets under Management (AuM) increased by N568.33 billion from ₦14.42 trillion as 30 September 2022 to N14.99 trillion as at 31 December 2022.”
According to the statement, PenCom made an increased effort to invest pension funds in alternative asset classes and structured infrastructure projects that met the strict requirements of pension fund investments regulation.
In her words, “During the reporting period, we stepped up our efforts to ensure sustainable investment of pension funds in alternative asset classes and structured infrastructure projects that met the strict requirements of the pension fund investments regulation.”
The Director General went on to say, “We continued our efforts to ensure further diversification of investments in pension fund portfolio assets.”
Despite the challenges of rising inflation in the Nigerian economy, PenCom is working hard to ensure that the average annual pension fund returns for Retirement Savings Accounts and legacy funds exceed headline inflation.
This shows PenCom’s commitment to ensuring that pension fund returns remain competitive despite the challenges posed by inflation.