CEM REPORT, FINANCE | The Pension industry in Nigeria has grown it Net Asset Value (NAV) by 3.94 per cent in the fourth quarter of 2022 (Q4’22).
The growth which represents N568.33 billion shot the industry’s NAV to N14.99 trillion in the review quarter.
According to the National Pension Commission (PenCom), the growth in Q4’22 was significantly higher than the growth of N156.74 billion (1.09%) recorded in Q3:2022.
PenCom reports that 7.06% of total assets stood at N1,017.01 billion which is the value of investments in quoted ordinary shares (domestic and foreign).
This implies that the industry recorded a net increase of N52.14 billion (5.40%) compared to N964 billion recorded in Q3’22.
The increase in the value of investments in domestic quoted equities was linked to the appreciation in the prices of some stocks during the reporting period, as the Nigerian Stock Exchange Pension Index (NSE-PI) depreciated by 8.03% in Q4:2022.
Similarly, the value of investments in FGN Securities grew by 4.92% to push up investment by N451 billion, closing the quarter at N9.64 trillion from N9.19 trillion recorded in the previous quarter.
The commission attributed the growth mainly to contributions received and positive investment performance during the period.