The Pension Funds Administrators invested N7.2tn of the total assets under the Contributory Pension Scheme in the Federal Government’s securities as of the end of May.
The National Pension Commission disclosed this in its report titled ‘Summary of pension fund assets as at 31 May, 2020’, which was obtained on Friday.
According to the report, the total funds under the CPS stood at N10.79tn during the period under review.
Out of the FG securities, N5.98tn was invested in FGN bonds; N1.11tn in treasury bills; N11.36bn in agency bonds (NMRC & FMBN); N84.65bn in sukuk bonds; and N11.27bn in green bonds.
Other investment portfolios where the operators invested the funds are real estate investment trusts, private equity funds, infrastructure funds, cash and other assets.
The Director, Centre for Pension Right Advocacy, Ivor Takor, in a statement on the ‘Contributory Pension Scheme’ said, “The Contributory Pension Scheme has created a huge pool of long-term investable fund, which should be utilised for infrastructural development.
“This should be done within an agreed framework put in place by all critical stakeholders.”
He explained that pension fund was about investment and not borrowing.
According to him, PFAs were investing organisations and not lending organisations.
Takor said, “The spirit and letters of the Pension Reform Act 2014 envisage investment not borrowing. The government, PenCom and pension operators know this very well.
“The law and guidelines for investment of pension fund made provisions for investment in infrastructure.”
He added, “We want to point out that Retirement Savings Accounts of workers are neither guaranteed by the federal and state governments nor any other organisation for that matter.
“The accounts and the funds in them are open to operation and investment risk, which is born by the owners of the accounts. Therefore, their representatives must have a say on any critical decision on the contents of the accounts.”
He added that the law did not confer on the federal or state governments the power to decree or order how the funds in private individuals’ RSAs should be invested.