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In May 2024, the Nigerian pension industry continued its upward trajectory, reaching a record high of N20.23 trillion. This reflects a substantial increase of N4.12 trillion compared to the previous year.
Nairalytics, the research division of Nairametrics, highlighted this growth in their analysis.
Data from the National Pension Commission (PenCom) shows that the total pension assets in the industry surged to N20.23 trillion in May 2024, up from N16.11 trillion in May 2023, representing a 25.6% year-on-year increase.
Compared to the previous month, the asset value increased by 2.23% from the N19.79 trillion recorded in the previous month.
The industry's growth in assets under management can be attributed to the increasing adoption of pension schemes by Nigerians and the high investment yields. Additionally, the total number of pension registrations saw a year-over-year increase of 3.2%, rising from 9.99 million in May 2023 to 10.32 million in May 2024.
Breaking down the data, the RSA II, a balanced fund for RSA holders of 49 years and below, contributed the most to the asset value. Specifically, RSA Fund II accounted for 41.7% of the assets, followed by Fund III with a contribution of 26.4%.
Investments in equities increased by N771.7 billion between May 2023 and the current date, reaching N1.89 trillion and representing 9.4% of the total pension assets. Corporate debt securities also increased by N466.26 billion during this period, attracting about N2.19 trillion as of the end of May 2024.
A significant portion of the funds was channeled into FGN securities, with 57.1% of the total gains, amounting to N2.07 trillion, being invested in federal government securities during the one-year period under review.
