Pension Assets Sustain Increase, Hit N20.5trn In June

Pension assets under the Contributory Pension Scheme (CPS) have risen by N257 billion in one month, hitting N20.5 trillion at the end of June 2024.

Recent data from the National Pension Commission (PenCom) reveals that the rise marks the second consecutive m/m growth in total assets under management (AUM) of the regulated pension industry following a brief pause in April.

Among the major asset categories, treasury bills registered the highest gain in June, rising by eight per cent m/m to N400 billion.

Treasury instruments have benefited from the prevailing elevated yield environment due to the CBN’s restrictive monetary stance and tight market liquidity, the data said.

On a year on year basis, the total AUM expanded by 22 per cent. The PenCom data in June showed about 10.4 million total scheme memberships, implying an average value of N1.97m per RSA account holder, higher than the N1.68 million registered in the year-earlier period.

On a standardised basis, the total pension assets account for only 8.9 percent of Nigeria’s FY’23 GDP, underscoring the low level of pension penetration in the country.