Despite the disruptions caused by the COVID-19 pandemic, which affected most aspects of the Nigerian economy, Pension Fund Administrators (PFAs) in Nigeria performed satisfactorily, as they recorded positive returns between January and August 2020.

According to the report from Pension Nigeria, no PFA had negative returns on investment (ROI) during the period under review, indicating that all PFAs for Fund I, II, III, and IV recorded positive returns.

This is quite impressive, given that the pandemic had impacted most aspects of the Nigerian economy negatively, causing a 1.95% (year-to-date) decline of the NSE’s All Share index, while the country’s Gross Domestic Product (GDP) contracted by 6.1% in the second quarter of 2020.

Industry average Return on Investment (ROI)

Fund I industry with 20 PFAs, recorded an average of 8.14% returns between January and August 2020. Fund II industry has 22 PFAs, and recorded an average return of 9.33%. Fund III recorded an industry average returns of 10.37%, with 22 PFAs. While Fund IV with 22 PFAs, recorded 9.01% return on investment. It is worth noting that no single PFA was dominant in all the four funds. NLPC PFA Limited and Investment One Pension Managers Limited, however, had dominance in three funds.

Industry average Return on Investment (ROI)

• Fund I industry with 20 PFAs, recorded an average of 8.14% returns between January and August 2020.
• Fund II industry has 22 PFAs, and recorded an average return of 9.33%.
• Fund III recorded an industry average returns of 10.37%, with 22 PFAs.
• While Fund IV with 22 PFAs, recorded 9.01% return on investment.

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