Pension assets now totalling N5.51 trillion will boost investments in Nigeria’s real sector, cutting across infrastructure, private equity vehicles, real estate, and subnational infrastructure initiatives.
The Director-General, National Pension Commission (PenCom),Omolola Oloworaran, revealed this in a statement on Tuesday during a meeting with a delegation from the International Monetary Fund (IMF).
She said the meeting focused on matters relating to the pension industry and broader financial sector developments.
Ms Oloworaran said pension fund investments in the real sector of the economy indicate the industry’s vital role in providing funding for key economic growth and development in the country.
According to her, the industry’s net asset value increased by 22.65% to N22.51 trillion as of December 2024 from N18.36 trillion by December end 2023.
She attributed the growth to additional contributions received and investment income.
Ms Oloworaran however decried the limited availability of investable instruments that meet the minimum requirements for pension funds’ investments in Nigeria.
She informed that only 86 investable instruments, constituting part of the pension broad index met the minimum quality requirement for liquid pension fund investments with the required free float.
This is despite the numerous provisions made in the investment regulation to foster increased eligible investment outlets.
Only 86 investable instruments, constituting part of the pension broad index met the minimum quality requirement for liquid pension fund investments with the required free float.
Ms Oloworaran said PenCom would continue to collaborate with capital market operators to broaden the spectrum of eligible financial instruments for pension fund investments.
She said the initiative aims to diversify portfolios and enhance real returns, adding that the PenCom would promote increased pension fund investment in alternative asset classes.
Such efforts, she said, will strengthen the overall investment portfolio and reinforce the Contributory Pension Scheme’s long-term growth and sustainability.
She noted that PenCom offers key developments within the pension industry, focusing on investment strategies, asset quality concerns, financing for growth, and regulatory challenges.
She reiterated the Commission’s commitment to fostering the development of diverse asset classes and securities eligible for pension fund investments.
She added that this will involve collaboration with entities like the Securities and Exchange Commission (SEC), the Debt Management Office (DMO), and the Pension Fund Operators Association of Nigeria (PenOp).
