Pension operators invest over N1.74 tr in Fed Govt’s securities

Pension operators invest over N1.74 tr in Fed Govt’s securities

Chuks Udo Okonta

Over N1.74 trillion pension funds has been invested by operators in Federal Government securities Inspen has learnt.

The Head, Research and Corporate Strategy National Pension Commission (PenCom) Dr. Farouk Aminu, who disclosed this in Abuja, said the amount represents over 61 per cent of the N2.9 trillion so far contributed by workers.

He noted that over N370 billion (13 percent) has been invested in money market, while N335 billion (12 per cent) was invested in ordinary share and real estate got N167.89 billion (six per cent).    

Aminu said state government securities got N109.24 (four per cent), corporate debt security got N72.10 billion (two per cent), unquoted securities N24.67 billion (one per cent) and other investment portfolio N23.49 billion (one per cent).

He noted that the regulation on investment of pension fund assets was revised to expand the allowable investment outlets to include alternative asset classes such as: Private Equity (PE) funds, infrastructure financing (Debt instruments and funds), supranational bonds, amongst others.

He said the commission would continue to review investment regulations, adding that multiple funds would be established and ethical fund introduced. He noted that guidelines on offshore investment being worked out to encourage operators explore foreign investment windows.