The Nigerian pension industry has committed a total of ₦5.51 trillion to asset classes that support long-term financing for real sector growth.
The Director General of the National Pension Commission (PenCom), Ms. Omolola Oloworaran, disclosed this during a recent meeting with a delegation from the International Monetary Fund (IMF).
She explained that these investments span infrastructure, private equity vehicles, real estate, and subnational infrastructure initiatives, among others.
A statement sent to Premium News on Tuesday quoted that the delegation, led by Mr. Jose De Luna, Senior Financial Sector Expert, held discussions with PenCom’s key officials on matters relating to the pension industry and broader financial sector developments.
Head, Surveillance Department, Abdulrahaman Muhammad Saleem, Pencom,represented the Director General at the meeting.
He told the delegation that pension fund investments in the real sector of the economy are indicative of the pension industry’s vital role in providing funding for key economic growth and development in Nigeria.
In a presentation to the delegation, PenCom said the industry Net Asset Value (NAV) increased by 22.65% from N18.36 trillion as of 31 December 2023 to N22.51 trillion as of 31 December 2024.
The growth was attributable to additional contributions received and investment income.
But,the Director General lamented the limited availability of investable instruments that meet the minimum requirements for pension funds’ investments in Nigeria currently.
According to her, only 86 investable instruments, constituting part of the pension broad index, meet the minimum quality requirement for pension fund investments that are liquid and have the required free float.
This is despite the numerous provisions made in the Investment Regulation to foster increased eligible investment outlets.
She assured that PenCom will continue to collaborate with capital market operators to broaden the spectrum of eligible financial instruments for pension fund investments.
She explained initiative aims to further diversify portfolios and enhance real returns,adding that the Commission will promote increased pension fund investment in alternative asset classes.
She added that these efforts are intended to strengthen the overall investment portfolio and reinforce the long-term growth and sustainability of the Contributory Pension Scheme (CPS).
The IMF delegation expressed satisfaction with PenCom’s ongoing efforts to diversify pension fund investments.
Besides,they commended PenCom’s regulation and supervision of the pension industry in Nigeria.
The institution praised PenCom for the remarkable growth achieved within Nigeria’s pension industry, recognising the Commission’s pivotal role in driving positive momentum and ensuring long-term sustainability.