The Pension Fund Administrators said N130.18 billion under the Contributory Pension Scheme has been invested in infrastructure, News About Nigeria reports.
This is contained in figures obtained from the National Pension Commission 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’, as of the end of September 2023.
Reports show that total assets under the CPS is stagnant at N17.35tn as of the period under review, while 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, which is in tandem with the provisions of the Pension Reform Act, 2014.
It added that the purpose of the regulation was to provide general rules and standards for the investment of pension fund assets.
The regulation mandates it that every 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 must obtain due approval from the Commission before entertaining an international custodian for such allowable foreign investments.
The regulation also stated that while discharging their contractual functions to contributors, they must not award contract of the investment/management of pension fund assets to third parties except for open/close-end/hybrid funds and specialist investment funds permitted by the regulation.
