Pension Fund Illustration

The value of pension funds in Nigeria increased by 2.23 per cent month-on-month to cross the N20tn mark to N20.23tn in May 2024. According to the unaudited report on the pension funds industry portfolio for the period ended May 31, 2024, released by the National Pension Commission, the Pension Funds Administrators’ investment in FG securities remained high and increased within the period under review as it cornered 63.22 per cent of the entire funds. Investment in government securities stood at N12.79tn from N12.40tn in April. PFAs also dropped about 10.83 per cent of the funds in corporate debt securities, with corporate bonds getting the largest share. Experts have attributed the PFAs’ interest in government securities and money market instruments to the hawkish stance of the Central Bank of Nigeria, which has seen it raise benchmark interest rates in a bid to reduce market liquidity. The attractive rates on offer have seen investors, including pension funds, allocate more capital towards fixed-income securities for higher returns for their funds and contributors.