Business
Pension fund down by 1.9% to N30.7bn
•Attributable to high payouts, economic pressures – Experts
By Rosemary Iwunze
The total pension fund assets declined by 1.9 per cent or N623.6 billion Month-on-Month, MoM, to N30.7 trillion in June from N31.3 trillion recorded in May 2026.
According to experts, the decline could be connected to poor investment market returns, high benefit payouts to retirees, and broader economic pressures.
According to the unaudited report on pension funds industry portfolio for the period ended 30 June 2026, total FGN Securities, where a huge chunk of the pension fund is invested, declined by 0.46 per cent to N17.40 trillion from N17.48 trillion recorded the previous month.
Corporate debt securities declined by 2.2 per cent to N2.21 trillion from N2.26 trillion recorded in May.
Money market instrument also declined by 3.7 per cent to N2.9 trillion from N3.01 trillion, while Mutual funds increased by 6.4 per cent to N288.5 billion from N271.1 trillion.
However, Retirement Savings Account, RSA, membership increased by 0.4 per cent to 11,316,232 in June from 11,270,361 recorded in May.
Meanwhile, the National Pension Commission, PenCom, said that plans are in motion to mobilise pension assets for infrastructure financing to channel funds into viable national projects while ensuring robust risk management and sustainable returns.
Director General of PenCom, Ms. Omolola Oloworaran, who disclosed this emphasised that increased investment in infrastructure would help close critical gaps in the economy, stimulate job creation, improve productivity, and ultimately deliver stronger long-term value for pension contributors.
She said: “It is critical to channel pension capital into infrastructure, create bankable investment pipelines, support national development, and preserve returns.
“The Investment and Financial Markets Committee has been set up to develop structured investment vehicles for infrastructure financing. These structures are being carefully designed to minimize risk exposure for pension funds while enabling participation in large-scale national projects. Implementation will follow once frameworks are finalised, with strong emphasis on risk management and capital preservation.”
