Bimbola Oyesola
The National Pension Commission, (PenCom) has said Nigeria’s total pension assets rose to N10.8 trillion at the end of May 2020, an increase of N200billion from N10.6 trillion in April.
This was as the total number of Retirement Savings Account (RSA) holders increased from N8.8 million reported earlier to more than 9 million as of May, 2020.
A break down of the data showed the various assets under the funds have been invested in. According to the data, the bulk of the funds, about N7.2 trillion representing 66.7 percent, was invested in Federal Government’s Securities.
Acting Director-General of the organisation, Aisha Dahir-Umar, said pension fund managers have been very cautious about where they invest.
“Since the introduction of the Multi-Fund Structure that created four different funds, the investment of the funds has varied from one to another,” she said.
According to her, Fund 1 has a maximum limit of 30 percent, Fund II has a maximum of 25 percent and Fund IV allows maximum of five percent.
She said, “The allowable exposures to variable income instruments have been designed such that Fund I has the highest allowable limit, followed by Fund II, III and IV.
“This reduces the risk and uncertainty of contributors in line with their ages.’’
The Pencom boss explained that many companies have been unable to recruit new employees since the pandemic hits Nigeria coupled with other economic challenges on different sectors.
However stakeholders have opined that the inability of the PFAs to sign up more RSA holders at this period might negatively impact on the growth of the pension assets.