Oloworaran: N5.51tn Pension Assets Deployed to Boost Long-term Financing for Real Sector
CHIGOZIE AMADI
Director General of the National Pension Commission (PenCom), Ms. Omolola Oloworaran, yesterday revealed that the Nigerian pension industry has committed a total of N5.51 trillion to asset classes that support long-term financing for real sector growth.
Oloworaran gave the figures during a meeting with a delegation from the International Monetary Fund (IMF), led by its Senior Financial Sector Expert, Mr. Jose De Luna.
The visit on Monday was part of the Fund’s 2025 Article IV Consultations.
The IMF staff held discussions with the commission’s key officials on matters relating to the pension industry and broader financial sector developments, according to a statement by PenCom.
Oloworaran, further explained that the real sector investments spanned infrastructure, private equity vehicles, real estate, and subnational infrastructure initiatives, among others.
Represented by the Head, Surveillance Department, Abdulrahaman Muhammad Saleem, the director general told the delegation that pension fund investments in the real sector of the economy are indicative of the industry’s vital role in providing funding for key economic growth and development in Nigeria.
In a presentation to the delegation, PenCom said the industry Net Asset Value (NAV) increased by 22.65 per cent from N18.36 trillion as of 31 December 2023 to N22.51 trillion as of December 31, 2024.
The growth was attributable to additional contributions received and investment income.
The DG however, decried the limited availability of investable instruments that meet the minimum requirements for pension funds’ investments in Nigeria currently.
She told the delegation that only 86 investable instruments, constituting part of the pension broad index, meet the minimum quality requirement for pension fund investments that are liquid and have the required free float.
This is despite the numerous provisions made in the Investment Regulation to foster increased eligible investment outlets.
Going forward, the commission said it will continue to collaborate with capital market operators to broaden the spectrum of eligible financial instruments for pension fund investments.
The initiative aims to further diversify portfolios and enhance real returns.
Additionally, the commission will promote increased pension fund investment in alternative asset classes.
These efforts are intended to strengthen the overall investment portfolio and reinforce the long-term growth and sustainability of the Contributory Pension Scheme (CPS).
During the meeting, PenCom also presented key developments within the pension industry, focusing on investment strategies, asset quality concerns, financing for growth, and regulatory challenges.
Noteworthy was the commission’s commitment to fostering the development of diverse asset classes and securities eligible for pension fund investments.
This initiative involved collaboration with entities such as the Securities and Exchange Commission (SEC), the Debt Management Office (DMO) and the Pension Fund Operators Association of Nigeria (PenOp).
The IMF delegation expressed satisfaction with PenCom’s ongoing efforts to diversify pension fund investments, the statement added.
In addition, the fund commended PenCom’s regulation and supervision of the pension industry in Nigeria.
The IMF praised the commission for the remarkable growth achieved within Nigeria’s pension industry, recognising its pivotal role in driving positive momentum and ensuring long-term sustainability.
