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As of the end of October 2023, the total assets within the Contributory Pension Scheme (CPS) have surged to N17.66tn, according to figures obtained from the National Pension Commission’s ‘Unaudited report on pension funds industry portfolio for the period ended October 31, 2023; Approved Existing Schemes, Closed Pension Fund Administrators and RSA funds (including unremitted contributions @CBN & Legacy Funds).’
Of this total, N11.42tn has been invested in Federal Government securities, reflecting the robust investment portfolio diversification within the pension industry. The remaining assets have been strategically allocated to state government securities, corporate debt securities, money market instruments, mutual funds, among other investment channels.
Earlier reports from Pension Fund Administrators revealed a noteworthy N7.98tn profit generated by investing workers’ contributions into their Retirement Savings Accounts under the CPS. A report from the Pension Fund Operators Association of Nigeria, titled ‘At the dawn of 20 years of pension reform, what are the gains?’ and released by PenOp CEO Mr. Oguche Agudah, highlighted that the total funds under the CPS reached N17.37tn at the close of the second quarter of 2023.
Worker contributions, both from the private and public sectors, amounted to N9.37tn during the same period, constituting 54% of the entire pension funds. The return on investment accounted for the remaining 46%, showcasing a balanced and sustainable growth model. These results signify the positive outcomes of the pension reform introduced in 2004 under the Pension Reform Act.
The Pension Fund Administrators, responsible for managing the funds, adhere to the multi-fund structure for the Retirement Savings Account, as mandated by the Pension Commission’s reviewed investment regulations. This strategic approach ensures prudent management and optimization of the pension assets for the benefit of contributors.
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