Total assets under the contributory pension scheme rose to 14.2 billion naira in May, according to National Pension Commission figures released on Friday.
This was included in the National Pensions Commission’s latest report titled “Unaudited Report on the Pension Fund Industry Portfolio for the period ended 31 May 2022; Approved existing schemes, closed pension fund administrators and RSA funds (including unpaid @CBN contributions and legacy funds).’
The funds, which ended on December 31, 2021 at N13.42 billion, increased to N13.61 billion and N13.76 billion at the end of January and February 2022, respectively.
It rose to 13.88 tn at the end of March and to 14.06 tn in April, according to the data.
The data showed that 8.8 billion naira of the total funds was invested in federal government securities, comprising bonds and treasury bills.
Other investment portfolios in which the funds were invested included: domestic and foreign common stocks; corporate debt securities comprising corporate bonds; corporate infrastructure bonds; corporate green bonds and supranational bonds.
PenCom also revealed that the total number of workers with retirement savings accounts increased slightly to 9.67 million at the end of May, from 9.529 million at the end of December 2021.
According to the Pension Fund Operators Association of Nigeria, the CPS helps Nigerian workers save for retirement and provides funds for infrastructure development.
Operators have urged workers to increase their mandatory deductions, noting this will allow them to increase their overall savings balances over time.
In a statement, the association said: “It is also pertinent to note that the contributory pension scheme in its current state has largely fostered a culture of savings in Nigeria. Prior to the enactment of the law, Nigeria did not have large domestic savings reserves.
“Many Nigerians have no other form of savings except through this contributory pension scheme. What we should be doing as a nation is to encourage these economies more rather than seek to dismantle the system.
“It is probably the only form of savings that most Nigerian workers are able to set aside for their retirement years.”