The number of workers with Retirement Savings Accounts under the Contributory Pension Scheme rose to 8.02 million at the end of April this year, figures released by the National Pension Commission on Monday showed.
The total pension funds under management by operators also rose to N8.09tn in the period under review.
According to the figures, 70 per cent of the money is invested in Federal Government’s securities such as treasury bills and bonds.
The PenCom report stated that some of the funds were invested in state government securities, agency bonds, supra-national bonds, commercial papers, foreign money market securities and open/close-end funds.
Other investment portfolios where the operators invested the funds are the Real Estate Investment Trusts, private equity funds, infrastructure funds, cash and other assets.
The President, Pension Fund Operators Association of Nigeria, Mrs Aderonke Adedeji, said the operators could not spend the pension funds on any kind of project.
“We will make sure there is a more systematic and structured way of using the funds for the benefits of our customers and our nation,” she stated.
According to her, the operators are already considering other classes of alternative investment structures that will improve the returns on the funds.
Last year, the commission reviewed the regulations for the investment of pension funds, stating that the Pension Fund Administrators must offer a multi-fund structure for the RSAs of contributors.
The new multi-fund structure seeks to align a contributor’s risk tolerance or appetite with his investment return expectations based on work life cycle, according to the commission.
The fund was divided into four parts to cater for the different age groups of contributors, including retirees under the CPS.
PenCom explained that a major benefit of the multi-fund structure was that the workers’ pension contributions would be invested in an optimal manner to achieve enhanced retirement benefits.
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