The Nigerian pension fund industry hit another milestone in September as its total asset value hit and surpassed the N13 trillion mark for the first time. This is according to the unaudited report on the pension fund industry for September 2021, published by PENCOM.
As pension and retirement funds all over the world continue to grow, Nigeria is also not being left out. This is evident by the 5.6% year-to-date increase recorded in the net assets of the industry. According to data from the National Pension Commission, total pension fund assets in Nigeria grew to N13.001 trillion ($31.69 billion) as of September 2021.
Similarly, the number of RSA registrations also increased to 9.46 million in September from 9.43 million as of the previous month. Also, between January and September 2021, a total of 245,385 new RSA registrations was recorded.
Compared with the previous month, pension fund assets increased by N100.57 billion from N12.9 trillion. The increase is attributable to increased contributions from retirement savings account holders, better investment performance and an increase in the number of people that registered into various retirement savings accounts.
The increase could also be attributed to the creativity of the Pension Commission, whose effort to come up with a Sharia-compliant pension fund, Fund VI, added N7.8 billion to the total assets of pension funds in Nigeria. The growth of pension fund assets has been in the ascendency in Nigeria as indicated in the chart below