As of the end of September 2023, Pension Fund Administrators (PFAs) have channeled N130.18 billion of funds under the Contributory Pension Scheme (CPS) into infrastructure investments, according to data from the National Pension Commission (PenCom).

The figures, obtained from the ‘Unaudited report on pension funds industry portfolio for the period ended 30 September 2023,’ also revealed that the total assets under the CPS amounted to N17.35 trillion during the same period.

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Apart from infrastructure investments, the funds were also allocated to domestic and foreign ordinary shares, federal and state governments’ securities, money market instruments, among other investment avenues.

PenCom’s amended investment regulation outlines the requirements for investing pension funds in accordance with the provisions of the Pension Reform Act, 2014.

The regulation aims to establish uniform rules and standards for pension fund asset investments.

The regulation emphasizes that pension fund custodians are to follow written instructions solely from licensed PFAs regarding the investment and management of pension fund assets held in the custody of the Pension Fund Custodians (PFCs) on behalf of contributors.

It further states that PFCs, in fulfilling their contractual functions to PFAs, should not delegate the custody of pension fund assets to third parties, except for allowable foreign investments made outside Nigeria, for which prior approval from the commission is required.

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The regulation highlights that PFAs, in fulfilling their contractual functions to contributors, should not delegate the investment or management of pension fund assets to third parties, except for specific types of funds allowed by the regulation, such as open/close-end/hybrid funds and specialist investment funds.