LIVE UPDATES
In May 2024, the value of pension funds in Nigeria saw a 2.23 per cent month-on-month increase, surpassing the N20tn mark to reach N20.23tn.
The National Pension Commission's unaudited report revealed that Pension Funds Administrators' investment in FG securities remained high, accounting for 63.22 per cent of the total funds.
Investment in government securities rose to N12.79tn from N12.40tn in April, while about 10.83 per cent of the funds were invested in corporate debt securities, with corporate bonds receiving the largest share.
The interest of PFAs in government securities and money market instruments has been attributed to the Central Bank of Nigeria's hawkish stance, leading to increased benchmark interest rates and a reduction in market liquidity.
This has prompted investors, including pension funds, to allocate more capital towards fixed-income securities for higher returns. In the money market's high-interest environment, pension fund investment slightly decreased to N1.93tn from N1.95tn in the previous month.
In May, there was an increased appetite for mutual funds compared to April, which saw a decline in this market segment. Mutual funds recorded an upswing to N95.28bn from N85.19bn in April.
The pension funds saw a monthly increase of N440.40bn at the end of May, marking the second-highest monthly increase this year, following January's N1.18tn increase.
Over the first five months of the year, pension funds appreciated by N1.87tn on a year-on-year basis.
