The Pension Fund Administrators have raised the amount of pension fund investment in real estate to N250.02bn, latest figures obtained from the National Pension Commission have shown.
This amounts to 2.68 per cent of the total assets of the Contributory Pension Scheme, which stood at N9.32tn as of the end of June 2019.
The operators had invested N229.17bn in real estate as at the end of 2017 from N203.35bn to the end of 2018.
PenCom also disclosed that the operators invested substantial part of the pension funds in the Federal Government’s bonds, treasury bills, and state governments’ securities.
It added that some of the funds were invested in agency bonds, supra-national bonds, commercial papers, foreign money market securities, and open/close-end funds.
Other investment portfolios, where the operators invested the funds are REITS, private equity funds, infrastructure funds, cash, and other assets.
The acting Director-General, PenCom, Mrs. Aisha Dahir-Umar, said the CPS had been impactful in Nigeria since the commencement of its implementation in 2004.
She said the formation of long-term domestic capital, which was in trillions of naira of pension assets, was slowly but surely changing Nigeria’s financial landscape.
This, by extension, she noted, was also transforming the course and pace of the country’s socio-economic development.
Dahir-Umar said about 73 per cent of the total pension assets had been invested in the Federal Government securities issued to finance various activities of the government.
“We believe that the enlistment of the informal sector into the pension savings net would boost the quantum of available long-term investible funds that would galvanise national development efforts,” she said.
The President, PenOp, Mrs. Aderonke Adedeji, said the role of pension funds in economic development had moved into the focus of public attention, particularly with regards to Nigeria’s growing need for long-term capital.
She explained that successful mobilisation of pension fund assets and contributions to the economic growth of any nation were essential policy objectives.
“For the first time, our country can now boast of a long-term funding base and the impact to date has included the funding of the government projects, development of the capital market as well as increased foreign development inflows,” Adedeji added.