PFAS Invested N7.2trn In Government Securities – PENCOM
The Pension Fund Administrator (PFAs) have invested N7.2 trillion of the total assets under the Contributory Pension Scheme (CPS) in the Federal Government’s securities as at end of May 2020.
The National Pension Commission (PenCom) disclosed this in a report titled ‘Summary of pension fund assets as at 31 May, 2020’.
According to the report, the total funds under the CPS stood at N10.79 trillion during the period under review.
Out of the FG securities, N5.98 trillion was invested in FGN bonds; N1.11 trillion in treasury bills; N11.36 billion in agency bonds (NMRC & FMBN); N84.65 billion in sukuk bonds, and N11.27 billion in green bonds.
Other investment portfolios where the operators invested the funds are real estate investment trusts, private equity funds, infrastructure funds, cash and other assets.
The Director, Centre for Pension Right Advocacy, Ivor Takor, in a statement on the ‘Contributory Pension Scheme’, said, “The Contributory Pension Scheme has created a huge pool of long-term investable fund, which should be utilised for infrastructural development.
“This should be done within an agreed framework put in place by all critical stakeholders.”
He explained that pension fund was about investment and not borrowing.
According to him, PFAs were investing organisations and not lending organisations.
Takor said, “The spirit and letters of the Pension Reform Act 2014 envisage investment not borrowing. The government, PenCom and pension operators know this very well.”