The total assets under the contributory pension scheme gained N1.01tn in eight months to hit N14.43tn in May, according to figures from the National Pension Commission.
This was contained in the National Pension Commission’s latest report titled, ‘Unaudited report on pension funds industry portfolio for the period ended 31 August 2022.’
The funds, which ended December 31, 2021, at N13.42tn, rose to N14.36tn by the end of July 2022.
The data showed that N9.21tn or 63.84 per cent of the total funds was invested in Federal Government securities, comprising bonds and treasury bills.
Other investment portfolios where the funds were invested included domestic and foreign ordinary shares; corporate debt securities comprising corporate bonds; corporate infrastructure bonds; corporate green bonds, and supranational bonds.
According to the Pension Fund Operators Association of Nigeria, the CPS is helping Nigerian workers to save for retirement and providing funds for infrastructure development.
The operators have urged workers to increase their statutory deductions, noting this would enable them to raise their aggregate saving 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 in no small way fostered a savings culture in Nigeria. Prior to the enactment of the Act, Nigeria did not have large pools of domestic savings.”