Total assets under the Contributory Pension Scheme gained N340bn in two months and rose to N13.76tn as of the end of February.
Gatekeepers News reports that the National Pension Commission (PenCom) made this known in its latest report, titled ‘Unaudited report on pension funds industry portfolio for the period ended 28 February 2022; Approved Existing Schemes, Closed Pension Fund Administrators and RSA funds (Including unremitted contributions @CBN & legacy funds).’
The funds, which ended December 31, 2021, at N13.42tn, rose to N13.61tn as of the end of January 2022.
The data showed that N8.51tn of the total funds was invested in Federal Government securities, comprising bonds and Treasury Bills, in February.
Other investment portfolios where the funds were invested include domestic and foreign ordinary shares; corporate debt securities comprising corporate bonds, corporate infrastructure bonds, corporate green bonds, and supranational bonds.
PenCom also disclosed that the total number of workers with Retirement Savings Accounts rose slightly to 9,589,721 as of February ending from 9,529,127 as of the end of December 2021.
The Pension Reform Act, which led to the CPS, was inaugurated in 2004.
It provides a contributory arrangement in which the employer and employee contributions to the workers’ RSAs.
Also, the Pension Fund Operators Association of Nigeria has said the CPS is helping Nigerian workers to save for retirement and providing funds for infrastructure development.
The operators urged workers to increase their statutory deductions, noting that this would enable them to raise their aggregate savings balances over time.
In a statement, the association said, “It is also pertinent to note that the Contributory Pension Scheme in its current state has in no small way fostered a savings culture in Nigeria. Prior to the enactment of the Act, Nigeria did not have large pools of domestic savings.
“Many Nigerians do not have any other form of savings, except through this contributory pension scheme. What we should be doing as a nation is to encourage more of these savings rather than looking to dismantle the system.
“This is probably the only form of savings most Nigerian workers are able to put aside for their retirement years.”
PenOp also advocated consistency and discipline in the contributions, adding that this would remove the need for any large lump sum payout at retirement.
