CBN to Use Any Tool to Fight Inflation: Cardoso
The governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said the apex bank is prepared to use any tool at its disposal to manage inflation, which has continued to spiral northward. Inflation figures had risen to 32.7 per cent in September after receding for two months as price pressures have been exacerbated by the government’s decision to scrap petrol and electricity subsidies and to devalue the naira twice since President Bola Tinubu took over last year. Cardoso, speaking at the FT Africa Summit in London, said the apex bank is ready to use any tools at our disposal to manage inflation; as he said, he expected headline inflation to moderate in the coming months, and food inflation was proving stickier. Noting that the bank was working closely with the government to address this, Cardoso said Nigeria must not slacken in its reform drive as it is beginning to attract ‘growing and serious interest’ from foreign investors, citing recent visits to the country by Citigroup CEO Jane Fraser and JPMorgan’s Jamie Dimon
Read More
PenCom Mandates PFAs to Suspend Investment in Commercial Papers
The National Pension Commission (PenCom) has directed licensed pension fund administrators (LPFAs) to suspend further investment in commercial papers with immediate effect. Commercial paper is a short-term debt instrument issued by corporations to finance inventory, accounts payable, payroll, and other short-term liabilities. In a circular with reference number ‘PENCOM/TECH/ISD/2024/402’, dated October 23, and signed by the Head surveillance department of PenCom, A.M. Salem, the commission said the Securities Exchange Commission (SEC) did not have established regulatory framework on the issue. According to the News Agency of Nigeria, the circular was addressed to managing directors and chief executives officers (CEOs) of all LPFAs. PenCom warned the LPFAs to desist from investing in the affected portfolio pending the issuance of guidelines on the issuance of commercial papers by the SEC. “PenCom has noted the increased investment by Licensed Pension Fund Administrators (LPFAs) in commercial papers issued by limited liability companies,” the commission said.
Read More
Nigeria’s pension assets hit N21trn
Nigeria’s contributory pension assets hit N21.14 trillion at the end of August 2024 as against N20.79 trillion recorded in July 2024, showing N345.65 billion increase. https://googleads.g.doubleclick.net/pagead/ads?gdpr=0&us_privacy=1—&gpp_sid=-1&client=ca-pub-4436182731786816&output=html&h=280&adk=295936384&adf=608956374&w=817&abgtt=6&fwrn=4&fwrnh=100&lmt=1730284905&num_ads=1&rafmt=1&armr=3&sem=mc&pwprc=9605152401&ad_type=text_image&format=817×280&url=https%3A%2F%2Fbusinessday.ng%2Finsurance%2Farticle%2Fnigerias-pension-assets-hit-n21trn%2F%3Futm_source%3Dbrevo%26utm_campaign%3DOctober%2520Newsletter%26utm_medium%3Demail&fwr=0&pra=3&rh=200&rw=816&rpe=1&resp_fmts=3&wgl=1&fa=27&uach=WyJXaW5kb3dzIiwiMTUuMC4wIiwieDg2IiwiIiwiMTMwLjAuNjcyMy43MCIsbnVsbCwwLG51bGwsIjY0IixbWyJDaHJvbWl1bSIsIjEzMC4wLjY3MjMuNzAiXSxbIkdvb2dsZSBDaHJvbWUiLCIxMzAuMC42NzIzLjcwIl0sWyJOb3Q_QV9CcmFuZCIsIjk5LjAuMC4wIl1dLDBd&dt=1730284910057&bpp=4&bdt=4703&idt=4&shv=r20241024&mjsv=m202410240101&ptt=9&saldr=aa&abxe=1&cookie=ID%3D8d2fffca8278af59%3AT%3D1730284909%3ART%3D1730284909%3AS%3DALNI_MZCJGL3w3qK3uhByT3_WBBzUB8RbQ&eo_id_str=ID%3D43295bc14e66c84a%3AT%3D1730284909%3ART%3D1730284909%3AS%3DAA-AfjYukpF4EgWNpoStQ2TjTvLp&prev_fmts=0x0%2C817x200%2C300x600%2C300x250&nras=2&correlator=5329558193270&frm=20&pv=1&u_tz=60&u_his=2&u_h=768&u_w=1360&u_ah=720&u_aw=1360&u_cd=24&u_sd=1&dmc=4&adx=107&ady=912&biw=1343&bih=599&scr_x=0&scr_y=284&eid=44759875%2C44759926%2C95346096%2C42533203%2C95344189%2C95344789%2C95345281%2C95345788&oid=2&pvsid=374721134665000&tmod=1838631262&uas=0&nvt=1&ref=https%3A%2F%2Fd44tc.r.ag.d.sendibm3.com%2F&fc=1408&brdim=0%2C0%2C0%2C0%2C1360%2C0%2C1360%2C720%2C1360%2C599&vis=1&rsz=%7C%7Cs%7C&abl=NS&fu=128&bc=31&bz=1&td=1&tdf=2&psd=W251bGwsW251bGwsbnVsbCxudWxsLCJkZXByZWNhdGVkX2thbm9uIl0sbnVsbCwzXQ..&nt=1&ifi=5&uci=a!5&btvi=3&fsb=1&dtd=1344 According to latest data from the National Pension Commission (PenCom), the number of registered contributors, otherwise called Retirement Savings Account (RSA) holders, also grew to 10, 457,073 at the end of August 2024, from 10,419,520 recorded in July. In second quarter (Q2) 2024, total contributions moved into individual RSA holders’ accounts stood at N 377 billion, with the public sector contributing N217 billion. The private sector contributed N160.83 billion, according to PenCom data compiled by analysts at the Pension Fund Operators Association of Nigeria(PenOp). In the second quarter (Q2) of 2023, public sector contributions were higher at N286.69 billion, while the private sector contributed N234.47 billion, showcasing strong performance from both sectors. By contrast, in Q2 2022, the public sector contributed N136 billion, and the private sector, N101.96 billion, showing a steady but more modest increase in contributions. Looking back at Q2 2021, both sectors contributed almost equally, with N97.17 billion from the public sector and N97.91 billion from the private sector. This marked a year where the gap between sectors was minimal, signalling balanced pension remittances. In Q2 2020, the public sector contributed N118.50 billion, while the private sector’s contribution was lower at N70.69 billion, PenOp said. Overall, the public sector has generally led in pension contributions over the years, but the private sector has been catching up steadily, especially since Q2 2021, where it nearly matched and sometimes exceeded public sector contributions. This growth suggests improved compliance, increasing employer participation, and growing awareness of pension obligations in both sectors. However, if more states were to join the Contributory Pension Scheme (CPS), these numbers could improve even further. Increased participation from states would lead to greater compliance, a broader base of contributors, and ultimately, a more robust pension system that could drive higher remittances and financial security for retirees across the country, analysts say.
Read More
