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HomeTop NewsNigeria Govt borrows 64% of N12.78 trln pension assets as of July...

Nigeria Govt borrows 64% of N12.78 trln pension assets as of July 2021

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By Oludare Mayowa

Federal Government has so far borrowed about 64.16 percent of the nation’s total pension assets, this, however, represents a decline from the 66.95 percent of the assets invested in federal securities as of July 2021, according to the latest report by the National Pension Commission (PENCOM).

The report showed that out of the N12.78 billion total of approved existing schemes, closed pension fund administrators and RSA funds (including unremitted contributions at CBN & legacy funds, a total of N8.20 trillion was invested in federal government securities as of the end of July, 2021.

The reports showed that investment in FG securities fell from N8.47 trillion recorded in at the end of June this year.

Breakdown of the investment of the accumulated pension assets showed that N2.04 trillion was placed in various banks deposit instruments as of July compared with N1.66 trillion in the previous month.

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Also, total of N89.68 billion was invested in state governement securities as of July ending compared with N97.98 billion in the month of June.

Pension assets invested in Commercial Papers stood at N62.25 billion against N72.10 billion in June, while a total of N957.73 billion worth of the assets were invested in Corporate Bonds against N924.17 billion in the previous year.

A further breakdown of the total pension assets invested in federal government debt showed that N7.65 trillion was invested in bonds instrument as of July compared with N7.81 trillion in June, while N88.05 billion was invested in Islamic Sukuk bonds compared with N86.09 billion in June.

Nigeria issues bonds monthly and treasury bills twice in a month to borrow funds from the domestic debt market to finance its budgetary deficit.

The federal government had proposed to borrow around N2.5 trillion from the domestic market this year to plug the deficit in the 2021 budget in the face of dwindling revenue income.

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