WATCH THE VIDEO HERE Pension Fund Administrators (PFAs) operating in the country increased their investments in Federal Government of Nigeria (FGN) securities in 2024 by 18.5 per cent. This information was revealed by the National Pension Commission (PenCom). The agency said the PFAs pumped about N14.1 trillion into FGN sovereign bonds, treasury bills, Sukuk and other securities sold by the federal government to fund budget deficits. The increased exposure of the PFAs in government securities reaffirmed the dominant role of the government in pension fund investments. In addition, this was due to the relatively safe and stable returns and the prevailing yield environment as well as increased supply by the Debt Management Office (DMO). The data also showed that the total value of pension fund assets rose in the period under review 22.9 per cent to N22.5 trillion from N18.3 trillion in 2023. Business Post reports that this indicated that FGN securities accounted for 62.6 per cent of the total pension fund assets last year. A breakdown showed that FGN bonds dominated with 93.6 per cent at N13.2 trillion in 2024 versus N11.5 trillion in 2023, treasury bills recorded N704 billion versus N214 billion, and Sukuk dropped to N93.6 billion from N245.6 billion in 2023. The other investment channels available for the PFAs in the year included corporate bonds, money market instruments, and real estate, demonstrating a diversified portfolio aimed at maximising returns and ensuring long-term sustainability.
PFAs’ Investments in FGN Bonds, T-Bills, Others Rise 18.5% to N14trn
