Of the N8.77 trillion of the total pension assets invested in Federal Government Securities for contributors last year, N118.31 billion was invested in the Sukuk Bond issued by the Federal Government to finance road projects nationwide, the Chairman, National Pension Commission (PenCom), Dr. Oluremi Oyindasola Oni, has said.
He said N59.32 billion was invested in FGN Green Bond, while N14.30 billion was invested in Agency Bonds issued by the Nigeria Mortgage Refinance Company last year.
The chairman made this known while presenting the Commission’s 2021 Annual Report to the public, which according to him, highlights significant developments in the industry during the year.
He stated that the report provides industry stakeholders and the public with details of strategic activities that focused on ensuring the prompt payment of retirement benefits, as well as efforts aimed at promoting a vibrant and sustainable pension industry that positively impacts the economy.
He noted that although the Commission’s efforts at diversifying investments of pension funds and hedging against inflation has gradually began to yield results, it is, however, worthy to add that efforts were ongoing to ensure that the annualised average rates of return of pension funds across RSA and Legacy Funds are above headline inflation rates.
He said during the year under review, the Commission pursued increased diversification of pension fund portfolios by ramping up efforts aimed at ensuring sustained investment of the fund in structured infrastructure projects that meet the stringent requirements as enshrined in the regulation for the investment of pension fund assets.
Oni further stated that despite the overwhelming uncertainties in global economic climate in the aftermath of the COVID-19 pandemic and the challenging macroeconomic environment, the industry recorded an increase of N1.11 trillion in pension assets in one-year.
He said the industry recorded N13.42 trillion in pension assets under Management as at last December 31 from N12.31 trillion in the preceding year.
He added that the industry also witnessed growth in membership under the Contributory Pension Scheme (CPS) as it rose to 9.59 million in 2021 from about 9.28 million recorded the previous year.
He remarked that the laudable performance, in key growth parameters, points to the fact that the industry will continue to deliver value and benefit to our stakeholders and the nation’s economy in years to come.
The Director-General of PenCom, Mrs Aisha Dahir-Umar, said the 2021 report of the Commission encapsulates the significant milestones achieved in pursuit of its mandate of regulating and supervising the Nigerian pension industry.
She said: “I am particularly pleased to note that the Commission has continued to consolidate on the gains of the past and focused on ensuring long-term value creation for stakeholders. We have remained steadily committed to delivering regulatory and supervisory excellence in the industry, through the implementation of its corporate strategic objectives in spite of the many challenges encountered by the industry.
“I am, however, confident that the Commission will consistently pursue innovative and exciting opportunities to respond to the challenges of supervising and regulating the industry.”