Nigerian pension fund hits N13.88 trillion in Q1 2022

Nigerian pension fund assets increased by N453.8 billion in the first quarter of 2022 to stand at N13.88 trillion at the end of March 2022, which is the highest level on record.

The sector’s assets under management grew by 3.38% during the review period, from N13.4 billion in December 2021.

The RSA II fund accounted for the bulk of the contribution to the fund with N6.06 trillion, or 43.6% of total pension funds.

RSA Fund III followed with N3.69 trillion, representing 26.7% of total assets. Additionally, Fund Category III increased by N158 billion during the reporting period.

Existing schemes accounted for 10.2% of total funds, increasing by 64.56 billion naira to 1.42 trillion naira. In addition, CPFAs accounted for 11.1% of total funds, amounting to N1.54 trillion during the reporting period.

In terms of investments, PFA investments in corporate debt securities increased by 63.78 billion naira in the first quarter of 2022, from 943.3 billion naira recorded in December 2021 to 1.01 trillion naira at the end of March 2022.

By contrast, investment in federal government securities fell by N271.56 billion in the first three months of the year to N8.5 trillion. Although FGN Securities accounts gobble up most pension fund manager investments.

Exposure to real estate properties also declined, albeit slightly. Investment in real estate fell N401.3 million to N156.39 billion from N156.8 billion at the end of the previous year.

Pension fund administrators during the reporting period increased their investments in the local equity market, with more than 28.95 billion naira of new investments in the market, bringing its total investments in the stock exchange to 944 .26 billion naira.

The improved interest in the local equity market by PFAs follows the positive performance of the Nigerian stock market since the start of the year.

On the other hand, PFAs reduced their exposure to foreign equities as their investments fell by 10.22 billion naira to 112.27 billion naira.

Dolores W. Simon