News
Naira Devaluation: Pension funds decline by $18.9 billion in one year
Naira Devaluation: Pension funds decline by $18.9 billion in one year
The devaluation of the Naira has exerted a substantial influence on the net asset value of pension fund assets in Nigeria over the past year.
According to PENCOM data reviewed by Nairametrics, the net asset value of pension funds in US dollar terms has declined by $18.9 billion from $33.3 billion as of January 2023 to $14.4 billion as of January 2024.
As of January 2024, pension fund assets in Nigeria hit N19.53 trillion, representing a 30.3% year-on-year growth from the N14.99 trillion recorded in January 2023.
At first look, the growth reflects impressive investment strategies by pension fund managers, however, when the Naira-denominated values are converted into USD, the narrative takes a different turn.
In January 2023, with an exchange rate of approximately N450/$, the NAV of N14.99 trillion equated to around $33.3 billion. However, by January 2024, with the exchange rate depreciating to about N1357/$, the recorded NAV of N19.53 trillion declined to $14.4 billion.
Though the pension funds declined by 56.8% in USD terms within the period under consideration, it significantly outperformed the Naira, which was devalued by 201.6% within the same period.
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The performance of pension fund managers can be evaluated as quite satisfactory as the 30.3% year-on-year growth recorded in the NAV of pension fund assets as of January 2024 notably outperformed the country’s inflation rate of 29.90% as of January 2024.
Between January 2023 and January 2024, the number of Retirement Savings Accounts (RSA) increased by 3.36% from 9.89 million to 10.22 million.
January 2024 also witnessed a significant growth in the net asset value of pension fund assets, as there was an increase of N1.18 trillion from December 2024, in contrast with the N428 billion witnessed between November and December 2023.
However, despite the significant growth in Naira terms, the further devaluation of the Naira in January 2024 saw the NAV decline by $6 billion in US Dollar terms.
In December 2023, the Net Asset Value (NAV) of pension funds stood at $20.4 billion, based on an exchange rate of N899/$. However, by January 2024, it had decreased to $14.4 billion, with an exchange rate of N1357/$.
Naira Devaluation: Pension funds decline by $18.9 billion in one year
News
Just in: Tinubu swears in Rivers Sole Administrator Ibas
Just in: Tinubu swears in Rivers Sole Administrator Ibok-ete Ibas
President Bola Tinubu has sworn in Vice Vice Admiral Ibok-ete Ibas (Retd.) as the Sole Administrator of Rivers State.
The administrator was sworn in on Wednesday after a short meeting with the President.
Tinubu announced the appointment of the retired naval chief at a nationwide broadcast on Tuesday, when he declared a state of emergency in Rivers State and suspended Governor Siminalayi Fubara, Deputy Governor, Ngozi Odu, and the state House of Assembly members.
The President said his decision was based on Section 305 of the 1999 Constitution, saying he could not continue to watch the political situation in Rivers escalate without taking concrete action.
The suspension of Fubara and other elected representatives has been rejected and condemned by many eminent Nigerians, legal luminaries, groups such as Atiku Abubakar, Peter Obi, Femi Falana, the Labour Party (LP), the Peoples Democratic Party (PDP) and the Nigerian Bar Association.
However, the emergency rule has been praised by the pro-Nyesom Wike Assembly led by Martins Amaewhule, accusing Fubara of contravening the Supreme Court ruling on the political situation in the state.
Ibas was the Chief of Naval Staff from 2015 to 2021.
He is from Cross River State where he had his early education.
The new sole administrator went to the Nigerian Defence Academy in 1979 from where he proceeded to have a successful career in the Navy, rising through the ranks to the very top.
He is a member of the Nigerian Institute of International Affairs (NIIA) and the Nigerian Institute of Management.
President Muhammadu Buhari who appointed him as Chief of Naval Staff conferred him with the National Honour of Commander of the Federal Republic (CFR) in 2022.
News
Breaking: Tinubu declares state of emergency in Rivers State
Breaking: Tinubu declares state of emergency in Rivers State
President Bola Tinubu on Tuesday night declared a state of emergency in Rivers State following the protracted political crisis in the state.
Tinubu made the declaration during a nationwide broadcast, saying it is for six months.
He announced the suspension of the Executive Governor, Siminalayi Fubara, his deputy and all the members of the House of Assembly for six months.
He immediately named an administrator, Vice Admiral Ibok-Ete Ibas (Retd), to take charge of the affairs of the state for the six-month period.
Section 305 of the 1999 Constitution interprets a state of emergency as a situation of national danger or disaster in which a government suspends normal constitutional procedures to regain control.
A state of emergency allows the President to immediately make any desired regulations to secure public order and safety. (Channels TV)
News
BREAKING: Tinubu addresses Nigerians on Rivers political crisis
BREAKING: Tinubu addresses Nigerians on Rivers political crisis
President Bola Tinubu on Tuesday night will hold a nationwide broadcast to address the crisis in Rivers state.
Bayo Onanuga, special adviser to the president on information and strategy, said the broadcast will be transmitted by the Nigerian Television Authority (NTA) and the Federal Radio Corporation of Nigeria (FRCN).
The broadcast is expected to be held by 7pm today.
Video: President Tinubu has declared state on emergency on Rivers state effective immediately, suspends Governor Fubara, his deputy governor and house of assembly members for six months.
He also nominated an administrator pic.twitter.com/jD1g9FHOez— Nigeria Stories (@NigeriaStories) March 18, 2025
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