CEM REPORT, FINANCE | The Pension Fund Operators Association of Nigeria (PenOp) has revealed that it invested a total of N303.58 billion in MTN Nigeria Series I and Dangote Industries Series I as of the second quarter of 2023.
The investment formed part of the corporate debt securities of the pension fund asset portfolio, which also included ₦400 billion in energy power, ₦40 billion in Flour Mills of Nigeria, ₦11.7 billion in Unity Capital Series 11, ₦100 billion in LFZC Special Purpose Vehicle, ₦45 billion in Shelter Afrique Series 1, N25 billion in Ardova Series 1, ₦115 billion in BUA and ₦34 billion in Prescott Plc.
The disclosure was made by the Chief Executive Officer of PenOp, Oguche Agudah, at a seminar tagged: ‘At the dawn of 20 years of pension reform, what are the gains?’ organised by the association in Lagos.
Agudah also said that the Pension Fund Operators (PFOs) grew workers’ pension contributions by over ₦8 trillion, bringing the total funds under the Contributory Pension Scheme (CPS) to ₦17.64 trillion as of October 2023.
He explained that workers’ contributions from both private and public sectors accounted for 54 per cent of the fund, while the return on investment accounted for 46 per cent of the entire pension fund assets as of the end of June 2023.
He added that workers’ contributions were judiciously invested and that the returns were added to the workers’ pension savings to reduce the effect of inflation on the funds.
According to him, the PFAs had recovered ₦24.8 billion from defaulting employers as of the end of the third quarter of 2023, and paid a total of ₦1.64 trillion to 442,000 retirees as a lump sum or programmed withdrawal in the second quarter of 2023.
He commended the PFOs for their professionalism and compliance with the regulatory framework of the National Pension Commissions MTN (PenCom), and assured the public of the safety and security of their pension funds.
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PenOp Calls for Implementation of Pension Reform Act 2014
Agudah also urged the government to implement the Pension Reform Act 2014, which provides for the inclusion of more workers in the formal and informal sectors into the CPS, and the payment of accrued benefits to retirees.
He said that the pension reform had brought about positive changes in the Nigerian economy, such as increased savings, capital market development, infrastructure financing, job creation and social security.
He expressed optimism that the pension industry would continue to grow and contribute to the national development in the next 20 years and beyond.
