Pension assets rose by 2% to N10.43tn in two months

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CEM Report:
The total assets under the Contributory Pension Scheme rose to N10.5tn between December 2019 and February 2020.

This is according to the figures published on Tuesday by the National Pension Commission in their monthly report for the month of February.

The report revealed that the funds grew by N289billion from N10.21trillion as at the end of 2019 representing 2% growth in two months.

The agency charged with the responsibility to manage the contributory pension fund invested the sum of N7.3 trillion on Federal Government Securities while the sum of N115.06 billion was invested in State Government Security.

Corporate Debt Security and Local Money Market Securities investment amounted to N566.85 billion and N1.17 trillion respectively

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The sum of N5.38 billion was invested in Foreign Money Market Securities while Mutual Fund investment amounted to N27.1 billion

The Contributory Pension Scheme was established by the Pension Reform Act in 2004 by the President Olusegun Obasanjo administration. It is joint a contribution whereby the employers and the employees contribute minimum percentages of the employees’ salary to the scheme every month. The minimum contribution for the employer is 10%, and 8% for the employee.

Pension assets have been growing over the last decade, reaching USD 44.1 trillion worldwide at the end of 2018, despite a decline relative to end-2017.

According to the figure published by Willis Towers Watson, Global institutional pension fund assets bounce back in 2019, up 15% to US$46.7 trillion

The seven largest markets for pension assets (the “P7”) – Australia, Canada, Japan, the Netherlands, Switzerland, the UK and the US – account for 92% of the P22, marginally higher than the previous year. The US also remains the largest pension market, representing 62% of worldwide pension assets, followed by the UK and Japan with 7.4% and 7.2% respectively.

In the decade ending 2019, South Korea (12.4%), Hong Kong (9.2%) and the US (7.8%) are the fastest growing pension markets in terms of total assets

According to a report by PricewaterhouseCoopers, in 2017 total assets under management in 12 selected Africa countries are forecast at $1.1 trillion in 2020. The 12 countries are: South Africa, Morocco, Mauritius, Namibia; Egypt, Kenya, Botswana, Ghana, Nigeria; Angola, Algeria, Tunisia.

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