Pension fund investments in FGN securities hit N9.6trn

By Cynthia Ezekwe 

The Federal Government securities (FGN)  pension fund  investment rose to N9.64 trillion in December, 2022, from the N9.19 trillion recorded as of September 30, 2022,representing N451.82 billion increase or 4.92 percentage increase.

The National Pension Commission (PenCom), disclosed this in its  Fourth Quarter 2022 report, pointing out that the  increase in the value of investments in FGN securities was majorly due to additional investments in the asset class during the quarter under review.

The report showed that the total value of pension fund assets as at December 31, 2022 was N14.99 trillion, which comprised of N10.72 trillion Retirement Savings Account (RSA) ‘Active’ Funds I, II III and V; N1.19 trillion RSA retiree fund IV; N1.57 trillion Closed Pension Fund Administrators (CPFAs); and N1.48 trillion approved existing schemes. Meanwhile, Fund VI Active and Retiree Fund amounted to N36.20 billion.

A breakdown of the fund further indicated that pension fund assets were mainly invested in federal government securities (FGN), which accounted for 64.33 percent of total assets.

“The composition of investments in FGN Securities includes FGN Bonds at 95.60 percent; Treasury Bills at 2.06 percent; and Agency Bonds, Sukuk and Green Bonds accounting for 2.34 percent,’’ the report disclosed.

The National Pension Commission (PenCom), attributed the increase in the value of investments in FGN securities to additional investments in the asset class during the quarter in review.