Nigeria’s total pension assets decline by N51.3bn in one month

Nigeria’s total pension assets decline by N51.3bn in one month

Nigeria’s total pension assets declined by N51.3 billion to stand at N12.25 trillion in the month of February 2021.

This was contained in the Nigerian Pension Commission released.

The nation’s pension assets declined to its lowest position in four months, characterized by the decline in bond prices, and profit-taking activities in the Nigerian equity market.

According to the report, the total pension asset declined by 0.42% from N12.29 trillion recorded as of January 2021 to N12.25 trillion in February 2021.

Federal Government bonds stood at N7.34 trillion, accounting for 59.6% of the total pension asset under management.
Also, local money market securities, which stood at N1.62 trillion as of February 2021, accounted for 13.4% of the gross asset for the period under review.

Mutual funds recorded a decline of 1.3% to stand at N158.96 billion from N162.1 billion recorded in the previous month.
However, treasury bills increased by 5.5% from N670.34 billion recorded as of the last day of January 2021 to N676.91 billion at the end of February 2021.

A cursory look at the data revealed that the pension asset had reduced by N6.93 billion in the previous month, before losing N51.28 billion in the period under review.

As of February 2021, RSA Fund II accounted for 43.82% of the total pension asset, as it stood at N5.37 trillion, followed by Fund III with N3.16 trillion (25.79%), and CPFAs at N1.47 trillion (11.98%).

Speaking on the decline, Oguche Agudah, the CEO of Pension Fund Operators Association of Nigeria (PenOp), noted that it was due to the decline in prices of fixed securities.

He, however, called on pension contributors to increase their contributions as that would guaranty more funds. He also called on employers in the private and government sector to remit due pension contributions.

Commenting on the reasons for the loss, Mrs Amaka Andy-Azike, the head of branding and communication of PenOp, stated that the losses are however unrealized losses and would have recovered in the month of March as the yield of government securities continues to trend upward.

She, therefore, called on pension contributors to be calm as there was no cause for worry. Mrs Amaka also reiterated that the pension scheme prioritises secured investments rather than riskier instruments that could yield higher returns.

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