Business a.m.
Nigeria’s contributory pension assets experienced a substantial surge in August 2024, climbing N345.65 billion to reach a total of N21.14 trillion, reflecting a marked increase from the N20.79 trillion recorded in the preceding month of July 2024, according to the latest data from the National Pension Commission (PenCom).
The contributory pension sector in Nigeria also reported an uptick in the number of registered contributors, commonly known as Retirement Savings Account (RSA) holders, during the month of August 2024.Â
According to the latest data, the total number of RSA holders grew to 10,457,073, recording an increase of 37,553 from the 10,419,520 recorded in the previous month of July.Â
The Nigerian government continued to be the leading borrower of pension funds in August 2024, commanding an allocation of N13.40 trillion for the month. Of this figure, federal government bonds, widely regarded as a stable and reliable investment option for pension funds, constituted the largest portion, with a total allocation of N12.59 trillion.
Following closely behind the federal government bonds in the allocation of pension funds in August 2024 were money market instruments and domestic ordinary shares, commanding allocations of N2.04 trillion and N1.94 trillion respectively.
These investment options, typically regarded as stable and liquid, provide pension funds with diverse opportunities for generating returns and diversifying their investment portfolios.
According to a recent compilation of data by analysts at the Pension Fund Operators Association of Nigeria (PenOp), total contributions made into individual Retirement Savings Account (RSA) holders reached N377 billion during the second quarter of 2024.
The public sector contributed significantly to this figure, accounting for N217 billion, while the private sector contributed N160.83 billion, showcasing the ongoing commitment of both sectors to support the growth and development of the pension sector in Nigeria.
During the second quarter (Q2) of 2023, both the public and private sectors in Nigeria made noteworthy contributions to the retirement savings accounts (RSA) of individual holders, marking a significant increase from the previous year.
While public sector contributions amounted to N286.69 billion, the private sector contributed N234.47 billion, highlighting the strong performance and ongoing commitment of both sectors to support the growth of the pension industry.
Although the contributions made to individual RSA holders in Q2 2022 reflected a steady upward trend, the growth was more modest compared to the impressive figures witnessed in Q2 2023.
In the second quarter of 2022, public sector contributions stood at N136 billion, while the private sector contributed N101.96 billion, representing a steady increase from previous quarters but a more conservative trend when compared to the growth observed in Q2 2023.
In the second quarter (Q2) of 2021, the public and private sectors in Nigeria made almost equal contributions to individual Retirement Savings Account (RSA) holders, demonstrating a balanced distribution of funds across both sectors.
While the public sector contributed N97.17 billion, the private sector contributed a slightly higher figure of N97.91 billion
The second quarter of 2020 marked a period when both public and private sectors made comparable contributions to individual Retirement Savings Account (RSA) holders, with the gap between their contributions being minimal.Â
