The Pension Fund Administrators have raised the amount invested in real estate to N225.04bn, latest figures obtained from the National Pension Commission have shown.
This amount represents 2.7 per cent of the total assets of the PFAs, which stood at N8.34tn as of the end of September 2018.
According to the commission, the amount invested in the real estate fell from N234.34bn at the end of 2016 to N203.35bn in 2017. But the operators increased the investment in 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 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.
While this was positive, she stressed that a note of caution must be raised in view of recent agitations to access the funds for infrastructure.