Pension assets in Nigeria surged by N345 billion, reaching a total of N21 trillion in August 2024.
The contributory pension assets hit N21.14 trillion at the end of August 2024, as against N20.79 trillion recorded in July 2024, showing a N345.65 billion increase.
According to the latest data from the National Pension Commission (PenCom), the number of registered contributors, otherwise called Retirement Savings Account (RSA) holders also grew to 10, 457,073 at the end of August 2024, from 10,419,520 recorded in July.
The Nigerian government maintained its position as the lead borrower of pension funds, with allocation to FGN Securities hitting N13.40 trillion in August, with federal government bonds being the highest at N12.59 trillion.
Money market instruments followed with N2,04 trillion, while domestic ordinary shares followed with N1.94 trillion.
Insurers eye growth from retail to beat headwinds.
In the second quarter (Q2) 2024, total contributions moved into individual RSA holders was N 377 billion, with the public sector contributing N217 billion, while the private sector contributed N160.83 billion, according to PenCom data compiled by analysts at the Pension Fund Operators Association of Nigeria(PenOp).
In Q2 2023, public sector contributions were higher at N286.69 billion, while the private sector contributed N234.47 billion, showcasing strong performance from both sectors. By contrast, in Q2 2022, the public sector contributed N136 billion, and the private sector N101.96 billion, showing a steady but more modest increase in contributions.
Looking back at Q2 2021, both sectors contributed almost equally, with N97.17 billion from the public sector and N97.91 billion from the private sector.
This marked a year where the gap between sectors was minimal, signalling balanced pension remittances. In Q2 2020, the public sector contributed N118.50 billion, while the private sector’s contribution was lower at N70.69 billion, PenOp said.
(Platinum Post)
