5.27% of Total Pensions Assets invested in Real Estate
Guest Post
According to the Nigerian National Pension Commission, 5.27% of total pension fund assets were in real estate properties in May 2014.
Asset
Holding
Total FGN Securities (FBN Bonds and Treasury Bills)
59.86%
Domestic Ordinary Shares
14.21%
Local Money Market securities
11.46%
Real Estate Properties
5.27%
Corporate Debt Securities
1.82%
Foreign Ordinary Shares
1.27%
Other
6.11%
Source: PenCom Monthly Report, May 2014
The Acting Director-General, National Pension Commission, Mrs. Chinelo Anohu-Amazu, said the success of the Contributory Pension Scheme had triggered an exponential growth in pension funds and size of assets under management. Anohu-Amazu explained that the value of pension assets as a % of the Nigerian GDP has grown from 1.47% in 2006, to 9.57% in 2013 .
The growing investor interest in Nigeria’s built environment means that assets like property and infrastructure will continue to thrive.
It was also noted that most African governments had been unable to adequately invest in infrastructure, given the decline in traditional sources of government funding and the paucity of funds.
However, recent reports suggest that the private sector has a strong interest in the infrastructure segment. Reuters reported that ARM Infrastructure is close to raising $250 million in the country’s first infrastructure fund, to invest in transport, energy and utility sectors across West Africa, with much of the money coming from pension funds. Other investors include some Nigerian pension funds and other institutional investors such as the African Development Bank.
About the Author:Dolapo Omidire is a recent graduate and a Real Estate Research Analyst living and working in Nigeria. He has a strong interest in his built environment, property and writing/blogging. For more information and posts, follow him on Twitter – @DolapoOmidire and visit. http://estateintel.com
