Contributory Pension Scheme Yields N130bn Fund for Infrastructure in 2023

Pension Fund Administrators invested N130.18 billion worth of funds under the Contributory Pension Scheme in infrastructure at the end of September 2023, data has shown.

This is contained in the National Pension Commission report on ‘Unaudited report on pension funds industry portfolio for the period ended 30 September 2023- Approved Existing Schemes, Closed Pension Fund Administrators and RSA Funds (Including unremitted contributions CBN & legacy funds’.

According to the figures, total assets under the CPS stood at N17.35tn for the period under review.

Part of the funds was also invested in domestic and foreign ordinary shares, federal and state governments’ securities, and money market instruments among others.

The commission had in its amended investment regulation highlighted the requirements for investing the funds in line with the provisions of the Pension Reform Act, 2014.

According to he report, the purpose of the regulation was to provide uniform rules and standards for the investment of pension fund assets.

As per the regulation, pension fund custodians must only take written instructions from licensed PFAs concerning the PFAs’ investment and management of pension fund assets held in the custody of the PFCs on behalf of the contributors.

It said the PFCs, in discharging their contractual functions to PFAs, must not contract out the custody of pension fund assets to third parties except for allowable investments made outside Nigeria.

“The PFC shall obtain prior approval from the commission before engaging a global custodian for such allowable foreign investments,” it said.

Punch/Hauwa Abu