Nigeria’s National Pension Commission is set to issue a 758-billion-naira bond to settle pension liabilities, particularly benefiting university professors and low-income earners. Additionally, PFAs have improved their asset allocations, achieving a 33% growth in money market investment, according to recent data. CEO Oguche Agudah provided insights into these developments on CNBC Africa, discussing how PFAs are adapting to market uncertainties.
Nigeria’s National Pension Commission has received approval to issue a bond worth 758 billion naira aimed at addressing the accumulated pension liabilities arising from the Contributory Pension Scheme. This financial move is expected to positively impact various stakeholders, including university professors and lower-income earners who have been waiting for pension benefits for an extended period.
In terms of asset management, data indicates that Pension Fund Administrators (PFAs) have significantly increased their allocation towards money market instruments. This allocation has seen an impressive 33% growth year-on-year, totaling 2.2 trillion naira in the year 2024, highlighting a strategic shift in investment approaches to mitigate market risks.
Oguche Agudah, the CEO of the Pension Fund Operators Association of Nigeria, discussed these developments with CNBC Africa. He emphasized the importance of the upcoming bond issuance and shared insights on how PFAs are adapting their investment strategies in response to current market conditions and challenges.
The Nigerian government’s move to issue a 758 billion naira bond for pension settlements reflects a critical step toward addressing existing pension liabilities. The increasing allocation towards money market instruments by PFAs indicates a proactive response to market fluctuations. Overall, these developments suggest a potentially positive outcome for pension stakeholders in Nigeria.
Original Source: www.cnbcafrica.com
