April 19, 2020/Coronation Research

The latest monthly report released by Nigeria’s Pension Commission (PENCOM) report shows that the assets under management (AUM) of the regulated pension industry rose by 12.4% y/y to N13.8trn (USD57.3bn) in February and by 1.2% m/m.

We note that over the past five years, growth in AUM has averaged 17% y/y. Growth was highest in 2018 (26.1% y/y) while 2019 recorded the lowest (12.2% y/y).  FGN debt securities accounted for 61.8% of the total AUM in February this year, compared with 66.4% recorded in the corresponding period of 2021. In the same period, other assets such as real estate, private equity and infrastructure funds accounted for 1.1%, 0.3% and 0.5% of total AUM respectively. Typically, investments into these asset classes are hampered by the shortage of eligible instruments.

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