See How Much Banks Borrowed From Your Pension Fund
As of the end of May 2018, Nigerian banks have borrowed 662.8 billion naira from the total pension funds under the Contributory Pension Scheme.
Figures obtained from the National Pension Commission revealed that this amounted to 8.4% of the total pension assets, which was 8.14 trillion naira during the period under review.
According to the report, the amount the Pension Fund Administrators invested in the banking sector was 409.48 billion naira in January 2017.
PenCom also revealed that the total assets under the CPS rose to 8.23 trillion naira at the end of June 2018.
Under the Pension Reform Act, the PFAs are required by law to administer the funds, while the Pension Fund Custodians keep custody of the assets.
The figures specifically indicated that the number of contributors grew by 312,291 from 7.89 million in December 2017 to 8.14 million as of June 2018.
It stated that “the net assets value of the pension assets of the contributory pension fund was 8.23 trillion naira as of June 2018. This represents an increase of 716.94 billion naira up from the value of 7.52 trillion naira as of 31st December 2017.
“This increase is attributed to new contributions received, interest/coupon from fixed income securities and net realised/unrealised gains on equities and mutual fund investments”.
The commission said the operators had invested a substantial part of the pension funds in the Federal Government’s bonds, treasury bills and state government securities.
Don't forget to share this story with your friends