Nigeria’s pension fund assets decreased slightly to N19.669 trillion for the period ending on March 31, 2024, according to data from the National Pension Commission (PenCom).
When compared to the N19.759 trillion recorded as net asset value (NAV) in February 2024, this implies a minor decline of roughly 0.45%.
This was mentioned in the commission’s March 2024 monthly report, which The News Chronicles was able to view as it was made public by PenCom.
Report details
Portfolio Allocation
The study states that the net asset value of all pension funds decreased to N19.669 trillion in March from N19.759 trillion the previous month.
- Upon deeper examination of the data, it is evident that the majority of portfolio allocation—roughly N12.200 trillion, or 62.03% of total net asset value (NAV)—is still allocated to investments in FGN securities.
- Pension funds also invested N1.779 trillion in money market instruments and N2.058 trillion in corporate debt securities.
- Investments in common shares of regional businesses increased from N1.915 trillion in February to N2.082 trillion, an 8.72% increase.
Allocation of funds
With N8.331 trillion, or 42.35% of the total fund NAV, Fund II, the Multi-Fund Structure’s default RSA Fund, continued to hold the highest portion of the Active RSA Funds allocation.
- Fund III continued to be allocated second, with a 1.19% increase from N5.112 trillion to N5.173 trillion.
- In the meantime, from 10,258,611 members in February 2024 to 10,280,956 members in March 2024, the RSA had a 0.22% increase in membership.
Optics
The NAVs of pension funds increased by a staggering N4.8 trillion, or 32.21%, from N14.9 trillion in December 2022 to N19.7 trillion in March.
To put things in perspective, pension fund assets increased by just N1.57 trillion, from N13.42 trillion to N14.99 trillion, between 2021 and 2022.
The increase is probably due to both an increase in portfolio values and a spike in pension fund contributions.
For instance, as of March 2024, FGN Securities’ net asset values had increased from N9.64 trillion in 2022 to N11.89 trillion.
Nigeria’s pension fund assets saw a minor decrease to N19.669 trillion in March 2024, but a closer look reveals a strong portfolio allocation with a predominance of FGN securities as investments.
Among the Multi-Fund Structure, Fund II notably keeps the biggest allocation, demonstrating stability in the face of volatile market conditions.
Although there has been a slight increase in membership, the recent significant rise in pension fund assets highlights the steady growth and the critical role that pension contributions play in enhancing financial resilience.
Source: Monthly-Report-March-2024.pdf (pencom.gov.ng)
