PFOs Sustain Business Growth With N1.69trn Investment

Pension Fund Operators (PFOs) have invested a sum of N1.69 trillion in banks through money market instruments from the inception of the Contributory Pension Scheme (CPS) to 2023.

The amount serves as loans to the private sector.

This was disclosed by the National Pension Commission (PenCom) in its monthly report published on its website.

According to the report, N1.59 trillion was invested in fixed deposits, while N78.28 billion was invested in commercial papers.

The commission also noted that pension operators directly invested N157.1 billion of its funds in Sukuk bonds issued by the Federal Government to finance road projects nationwide.

The pension sector regulator noted that as of February 28, 2023, N9.97 trillion of the N15.58 trillion assets under management (AuM) was invested in Federal Government securities.

PenCom stated that N12.13 billion was also invested in agency bonds issued by the Nigeria Mortgage Refinance Company.

“It is significant to note that all investments of pension funds by the pension fund administrators (PFAs) are made by guidelines and regulations issued by the commission and guided by the primary objectives of safety and maintenance of fair returns,” it said.

According to the Commission, Federal Government bonds gulped N9.97 trillion while treasury bills took N181.28 billion of its investment.