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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
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No child should go to bed hungry, Tinubu seeks French investment in Nigeria’s food security
No child should go to bed hungry, Tinubu seeks French investment in Nigeria’s food security
President Bola Tinubu, Thursday, at the prestigious Palais des L’Élysée, told France President, Emmanuel Macron, that a starved nation will not care about weather or environment, and that in the 21st century no child should go to bed hungry.
President Tinubu at a high-profile meeting with President Macron also affirmed Nigeria’s strong commitment to enhancing cooperation in key sectors such as food security, energy, solid minerals, education, and defense. At a joint press conference, President Tinubu highlighted the vast, yet largely untapped potential within Nigeria’s agricultural sector and beckoned international investors to capitalize on the nation’s welcoming investment climate.
Tinubu in a statement by his Special Adviser on Information and Strategy, Mr. Bayo Onanuga, said: “The French-Nigeria Business Forum is doing a lot already, but we need to do more on food security. We cannot help but invest in another’s country.”
He emphasised Nigeria’s flourishing financial sector as a facilitator for foreign investment, particularly from French enterprises, as part of the drive to bolster food security.
“Nigeria’s financial sector is evolving and flourishing. We are also creating grounds for investment in Nigeria’s economy for French nationals, especially in the area of food security.
“It is our responsibility to put together a food security programme for the private sector to come and invest in the country.
“We are working on stability and we are getting closer and closer, but we can do better and better,” the President stated.
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President Tinubu said Nigeria’s economy was being repositioned for more Foreign Direct Investment that will directly impact the livelihood of the citizens.
“I can assure you that Nigeria is open for business and close to this, we have a vibrant youth population that is educated, and ready to be trained in various areas of entrepreneurship and development,” he said.
No child should go to bed hungry, Tinubu seeks French investment in Nigeria’s food security
News
2023 Hajj: NAHCON refunds N5.3b to states, tour operators
2023 Hajj: NAHCON refunds N5.3b to states, tour operators
The National Hajj Commission of Nigeria (NAHCON) said it has disbursed refunds amounting to N4.4 billion to 36 States’ Pilgrims’ Welfare Boards, the Federal Capital Territory (FCT) and the Armed Forces pertaining to the Masha’ir (core Hajj period) electricity services not rendered properly by the Saudi Authorities during the 2023 Hajj
The Head, Public Affairs, NAHCON, Malam Muhammad Musa, made this known in a statement on Thursday in Abuja.
Musa explained that in addition, the Commission has refunded a sum of N917,148,479.99 to 192 accredited Tour Companies that participated in the 2023 hajj.
” This amount is intended for onward disbursement to their respective pilgrims, while the remaining participating companies will also be refunded after due reconciliation.
“This refund underscores NAHCON’s commitment, under the leadership of its Chairman, Prof. Abdullahi Usman, to uphold transparency and accountability in the management of Hajj operations.”
Musa explained that all pilgrims who participated in the 2023 hajj were advised to contact their respective State Pilgrims’ Welfare Agencies, Boards and Commissions or tour operators to claim their refunds.
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“Each Pilgrim, is entitled to receive a refund of N61,080.00. A detailed breakdown of the number of pilgrims per state and the corresponding amounts is attached to this press statement.
“The commission hereby calls upon all 2025 hajj intending pilgrims to promptly deposit their hajj fares with their respective state pilgrims boards.
“This measure is essential to ensure the timely transmission of funds to NAHCON, thereby facilitating early arrangements of the 2025 Hajj in strict compliance with the guidelines set forth by the Kingdom of Saudi Arabia.
“In the interest of transparency and due process, NAHCON calls upon the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Other Related Offences Commission (ICPC), and other relevant security agencies to closely monitor the refund process.
“This collaboration aims to ensure that all refunds are appropriately disbursed and reached the intended beneficiaries without any discrepancy,” Musa said.
2023 Hajj: NAHCON refunds N5.3b to states, tour operators
(NAN)
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Macron welcomes Tinubu, Remi in historic France visit
Macron welcomes Tinubu, Remi in historic France visit
President Bola Tinubu on Thursday began a two-day visit to France, with both countries seeking increased economic cooperation and Paris looking to boost ties in English-speaking Africa following a series of setbacks with former allies on the continent.
French President Emmanuel Macron met his counterpart at the historic Invalides Memorial Complex, with the first official state visit by a Nigerian leader in more than two decades.
The two national anthems sang out in the courtyard of one of Paris’ landmarks, kicking off a visit focused on encouraging economic partnerships between France and Africa’s most populous country.
Macron has sought a “renewal” between Paris and Africa since his 2017 election and after military coups and changing attitudes lessened France’s influence in Africa.
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The visit is “an opportunity to deepen the already dynamic relationship between France and Nigeria”, Macron’s office said.
Nigeria is Africa’s leading oil producer and has a robust film and entertainment industry.
However challenges posed by insecurity and corruption have left 129 million Nigerians — more than half the country’s population — living below the poverty line.
Nigeria is seeking to build ties in “agriculture, security, education, health, youth engagement, innovation and energy transition,” Tinubu’s office said in a statement, adding that the president had landed in Paris on Wednesday evening.
Tinubu and Macron will also address “shared values concerning finance, solid minerals, trade and investment, and communication,” it added.
Macron welcomes Tinubu, Remi in historic France visit
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