The National Pension Commission (PenCom) has reported that total pension fund assets grew to N20.22 trillion in May 2024. This marks a 2.23 percent increase from the N19.78 trillion recorded in April 2024, according to PenCom’s data on the pension fund industry portfolio as of May 31.
PenCom’s data revealed that 63.22 percent, or N12.78 trillion, of the total assets were invested in federal government securities, including bonds and treasury bills. Additionally, about 10.83 percent of the funds were allocated to corporate debt securities, with corporate bonds receiving the largest share.
Investment in mutual funds also saw a significant increase, rising by 47 percent to N95.27 billion in May, up from N85.18 billion in April. Overall, pension funds experienced a monthly increase of N440.4 billion by the end of May.
Over the past year, from May 2023 to May 2024, the number of members in the Retirement Savings Account (RSA) grew by 356,795, reaching a total of 10,351,624.
On May 15, the federal government announced plans to borrow from the pension fund and other local financial resources to support infrastructure development in Nigeria. Wale Edun, the coordinating minister for the economy and minister of finance, emphasized the government’s focus on leveraging domestic financial resources, particularly pension and life insurance funds, to drive economic progress and address critical infrastructure needs.
Edun highlighted the potential of the N20 trillion in pension fund assets to be directed towards essential sectors such as housing and long-term mortgage provision, presenting a significant opportunity for national growth.
