< View all Research posts

Inflow into the Active Pension Funds

May Infographics

2022 marked an impressive year in terms of inflows into the pension fund assets. The largest factor behind that increase was contributions from RSA account holders. This rose significantly from N1.25trn in 2021 to N1.9trn in 2022. One of the main reasons behind this was the macroeconomy, as the country continued to recover from the Covid induced lockdowns, business activity continued to rise and more people entered the workforce.

The positive trajectory doesn’t end there. The inflow from interest and coupons from N884.39 billion to over N1trn in 2022 as the central bank began to shift towards a more hawkish monetary policy with rate hikes to control inflation.

Dividend and Rental income saw more modest gains, rising from just under N60bn to over N68bn within the same period.

Pension fund managers saw positive returns in net gains in equities and bonds. With fund managers recording losses in 2021, 2022 saw net gains of over N22bn. This was perhaps due to the performance of the equities market which gained 20% in 2022.

These figures paint a vivid picture of Nigeria's progress and unwavering commitment to securing the financial future of its citizens. The tremendous growth in monthly contributions, coupled with the substantial inflow of interest/coupons, dividend/rental income, and the remarkable recovery from net realized gain/loss, exemplify a nation on the path to prosperity.