Pension funds fixed in bank placements rose by N520.25bn from N1.64tn as of the end of April 2021 to N1.99tn as of the end of April 2022. Figures obtained from the National Pension Commission on ‘Unaudited report on pension funds industry portfolio for the period ended 30 April 2022; Approved Existing Schemes, Closed Pension Fund Administrators and RSA funds (Including unremitted contributions @Cbn & Legacy Funds)’, showed that the total pension funds stood at N13.76tn as of the end of February. According to PenCom, bank placement is one of the approved investment portfolios allowed by the Pension Fund Administrators to invest the Contributory Pension funds to earn interest. According to the Pension Fund Operators Association of Nigeria, the CPS which Nigeria currently practices has inbuilt checks and balances embedded into the system. The custody of all the pension funds are held with separate and independent entities – the Pension fund Custodians.

Source: Punch July 22, 2022 17:38 UTC