Would you like to receive notifications on latest updates of the following headlines?

Pension Funds Fall By $6Bn Over Naira Depreciation

POSTED ON March 19, 2024 •   Business      BY Abiodun Saheed Omodara •   VIEWS 200

The value of the pension fund in dollar terms declined by 29 per cent to $14.39bn in January 2024 compared to $20.41bn in December 2023.

According to the January unaudited report on the pension funds industry portfolio, the value of the pension fund was converted at the rate of N1,356.88/$ in January from N899.39/$ in December, leading to the decline.

The naira has been struggling against the dollar since the country’s exchange rate was in June 2023 by the Central Bank of Nigeria.

The further depreciation of the naira this year has reduced the value of the pension funds in dollar terms.

In naira terms, the total assets under the Contributory Pension Scheme rose to N19.53tn  from N18.36tn at the end of 2023, according to data from the National Pension Commission.

According to the report, N12.14tn of the value of the assets was invested in Federal Government securities, higher than N11.92tn from the previous month.

Earlier this month, the Director General of the National Pension Commission, Aisha Dahir-Umar, denied allegations that the commission loaned N10tn to the Federal Government.

Dahir-Umar said that PenCom was not a bank and did not warehouse or manage pension funds, adding that the Federal Government did not obtain a N10tn loan from the commission.

She remarked, “Investments by the PFAs in the securities of the Federal Government of Nigeria are not loans as erroneously portrayed, but investments in securities, through bonds and treasury bills, as approved by the relevant government agencies, in this case, the Debt Management Office and Securities and Exchange Commission. They are traded on authorised capital markets. That is, the Nigerian Exchange Limited and FMDQ OTC Securities Exchange.”

The PenCom data showed that the Retired Savings Account membership as of January 2024 stood at 10,223,672, indicating a 0.32 per cent increase over December’s figure, which was 10,191,400.

The Head of the Corporate Communications Department, PenCom, Abdulqadir Dahiru, has earlier said that the depreciation of local currency affected not only pension funds but had a wider effect on the economy.

Speaking on what the commission was doing to hedge against the microeconomic headwinds, he said, “Naira devaluation did not just affect pension funds; it affected everybody, and it is a twin thing. You have inflation and you have devaluation.

“So, anybody who has money in the bank can tell you what inflation has done to his money. It reduces the value of the currency because then you need more of that currency to buy the same amount of the goods and services.”

According to Dahiru, pension funds have an advantage in that they are invested in many instruments.

Nigeria’s inflation figure for February stood at 31.70 per cent, according to the National Bureau of Statistics.

RECOMMENDED FOR YOU
IMF pledges support for Tinubu's reforms
BY Abiodun Saheed Omodara November 21, 2024 0

The President of the International Monetary Fund (IMF), Kristalina Georgieva has expressed strong ba...

RECOMMENDED FOR YOU
Amazon Shares Show Resilience Amid Market Fluctuations
BY Suleiman Kelvin Jimoh November 21, 2024 0

Amazon.com Inc (AMZN) has demonstrated a remarkable rebound in the stock market, showing a year-to-d...

RECOMMENDED FOR YOU
Gombe gov presents N320bn 2025 budget to assembly
BY Abiodun Saheed Omodara November 20, 2024 0

Gombe State Governor, Muhammadu Yahaya, presented a proposed budget of N320.11 billion for the 2025...

RECOMMENDED FOR YOU
NNPCL: Coalition group vows protest, says 1.6bn litres PMS will cripple economy
BY Benedicta Bassey November 20, 2024 0

NIGERIA—Following the decision by the Nigeria National Petroleum Company Limited (NNPCL), to i...

RECOMMENDED FOR YOU
FG reviews housing budget to N500bn for 2025
BY Benedicta Bassey November 19, 2024 0

NIGERIA —The Federal Government on Tuesday said it is reviewing it's annual housing budget to...

RECOMMENDED FOR YOU
Naira appreciates, hit N1,735/$ in parallel market
BY Benedicta Bassey November 19, 2024 0

The Naira appreciated to N1,735 per dollar in the parallel market from N1,740 per dollar last weeken...

RECOMMENDED FOR YOU
Tinubu, India PM sign pacts to foster collaboration in defence, economy
BY Benedicta Bassey November 18, 2024 0

NIGERIA — Nigeria and India have entered into partnership to foster collaboration in  def...

RECOMMENDED FOR YOU
UK regular pay growth slows, offering Bank of England hope for easing inflation pressures
BY ROCKETPARROT.com staff November 12, 2024 0

LONDON, Nov. 12 – British wage growth excluding bonuses hit a two-year low in the third quarte...

OUR CHANNELS:

OTHER ARTICLES ::

25th November, 2024
Probe humanitarian ministry's missing N57bn, SERAP tells Tinubu
BY Benedicta Bassey November 25, 2024 0

NIGERIA — The Socio-Economic Rights and Accountability Project has called on President Bo...


Lagos Govt extols S’Court verdict, nullifying National Lottery Act
BY Benedicta Bassey November 25, 2024 0

LAGOS, Nigeria  — The Lagos State Government has hailed the Supreme Court judgm...


A’Ibom suspends principal, begins probe over poor meal in boarding schools
BY Benedicta Bassey November 25, 2024 0

AKWA IBOM, Nigeria  — The Akwa Ibom State government has suspended the principal of...


NAFDAC warns against unsafe antibiotics use in animals, humans
BY Benedicta Bassey November 25, 2024 0

NIGERIA  — The Director-General, National Agency for Food and Drug Administration an...


Top doctors halt strike action to review FG's response
BY Benedicta Bassey November 25, 2024 0

NIGERIA — The Medical and Dental Consultants’ Association of Nigeria (MDCAN) has suspend...


Tinubu eyes livestock sector reform, investment to curb farmer-herder clashes
BY Abiodun Saheed Omodara November 25, 2024 0

President Bola Tinubu has reaffirmed his administration’s commitment to resolving the farmer-h...


Katsina Govt. applauds  NAF  strike against bandits, vows to sustain regional stability
BY Abiodun Saheed Omodara November 25, 2024 0

KATSINA – The Katsina State Government has commended the Nigerian Air Force (NAF) for successf...


Breaking : Supreme court voids National Lottery Act
BY Abiodun Saheed Omodara November 25, 2024 0

The Supreme Court, on Friday, nullified the National Lottery Act 2005 enacted by the National Assemb...


ECB's renews integration call as trade war looms
BY Abiodun Saheed Omodara November 25, 2024 0

European Central Bank, President Christine Lagarde renewed her call for economic integration across...


China expands Visa-free entry to more countries to boost economy
BY Abiodun Saheed Omodara November 25, 2024 0

On Friday, China announced that it would expand visa-free entry to citizens of nine more countries a...


Menu