The figure represents 61% of its assets
The National Pension Commission (Pen Com) has invested the sum of N1.75 trillion pension funds in acquiring Federal Government securities.
The agency revealed that the investment, which represents about 61 percent of the N2.86 trillion worth of pension assets accumulated through the contributory pension scheme, was made on August 31, 2012.
Money market securities accounted for N370.07 billion or 13 percent worth of portfolio investments in the nation?s economy.
Farouk Aminu, Head, Research and Corporate Strategy of the Commission, while speaking at a workshop in Abuja, revealed that the public sector also contributed about N811.77 billion from July 2004 to August 2012, while about 55 percent of the assets, equivalent to N1.57 trillion was sourced from the private sector.
He said since pension funds generated appreciable pool of long-term investible funds, the commission invested it in authorised markets with portfolio limits as well as performance benchmarks.
Aminu said the regulation on investment of pension fund assets was expanded in order to allow investment outlets to include alternative asset classes like private equity funds, infrastructure financing (debt instruments and funds) and supranational bonds.
According to him, it was a programme for capacity building with support from IFC/World Bank on infrastructure financing and private equity in collaboration with SEC, NSE and other capital market operators.
Dave Uduanu, the President, Pension Fund Operators Association of Nigeria (PENOP) stated that pension funds should be invested, as the proceeds from the investment would determine what would be given to the owners at retirement.
He, however, described the development as safety of funds, fair returns on investment and adequate liquidity to meet benefit payments as and when due.
