Despite the impact of recession on the Nigerian economy, the total funds under the Contributory Pension Scheme rose to N6.02tn at the end of November 2016.

This was disclosed in the update on the assets under management obtained by our correspondent from the National Pension Commission.

According to the commission, the funds rose from N4.6tn at the end of the 2014 financial period to N5.3tn in 2015.

The Director-General, PenCom, Mrs. Chinelo Anohu-Amazu, said the funds were being well managed, adding that no fraud had been recorded under the scheme.

She explained that the Pension Reform Act, 2004, which was the governing legislation of the CPS, was repealed and re-enacted in July 2014.

She said the new law re-enacted the copious provisions of the repealed 2004 Act, which included the establishment of the CPS as well as PenCom as the sole regulator and supervisor of pension matters in the country.

“Among other significant revisions, the PRA 2014 introduced some innovations in the pension system, instituted a stiffer regime of sanctions and penalties for infringements, ensured the upward review of the minimum rate of pension contribution in order to enhance the value of pension pay-outs, and expanded the coverage of private sector employees under the CPS,” Anohu-Amazu said.

The Chairman, Pension Fund Operators Association of Nigeria, Mr. Eguarehide Longe, said the pension funds were active in different investment portfolios.

According to him, the bulk of the funds is invested in government bonds, which the government has invested some in infrastructure.

Ideally, he explained that money that had been borrowed for reasonably long-term should be used for reasonable long-term assets and not to fund recurrent expenditure.