Leading rating agency Agusto & Co, has predicted that Nigeria’s pension assets will rise by over 14 per cent by the end of this year and an average of 12.5 per cent over the next five years. The agency in a survey of the pension industry revealed that the global pension industry had estimated assets under management (AuM) of $41.1 trillion, which represented 53.9 per cent of global AuM, while Nigeria’s pension assets stood at N8.6 trillion at the end of 2018.
The report further disclosed that, the N8.6 trillion was 13.4 per cent higher than the previous year and showed a 17.6 per cent compounded growth rate (CAGR) over the past three years. It says, “This growth is attributed to net inflow of 36.8 per cent and investment returns of 63.2 per cent. Over the past three years, the industry’s growth has been dominated by investment returns, a marked departure from previous trends where net inflows accounted for the majority of the industry’s growth.
“As at March 2019, the industry’s AuM rose further to N9.03 trillion ($25 billion) and we expect the Industry’s growth to exceed 14 per cent in 2019 supported by an improved macroeconomic environment that would drive increased contribution and limit the incidence of 25 per cent lump sum withdrawals.
