Pension News

Analysis of Pension Operating Environment Q2 2022

National Pension Commission (PenCom) has released its report for the 2nd quarter of 2022 for the Pension Industry.

PenCom in its report gave an analysis of the pension operating environment for Q2, 2022. PenCom stated in the report that the data used for the analysis is sourced from the S&P/FMDQ Sovereign Bond index 2022, National Bureau of Statistics 2022 and Nigerian Stock Exchange website/report 2022.

Below are the analyses;

Macroeconomic Development

The Nigerian economy has exhibited steady but low growth since the Covid-19 pandemic induced recession of 2020. The economy grew by 3.40% in 2021 and 3.11% in Q1:2022. The growth during the period was indicative of the economy’s response to the post pandemic fiscal and monetary policy actions targeted at stimulating growth. The growth was majorly driven by Agriculture, ICT, Trade and Manufacturing.

Oil revenues has also picked up with recovery in global oil prices but did not translate into growth in revenue as gains from the price rally were offset by local subsidy payment on petroleum.

In line with the turnout of global events, the domestic economy has witnessed rising inflation, as the rate of inflation increased from 15.92% in March 2022 to 18.60 in June 2022. The Monetary Policy Committee of the Central Bank of Nigeria (MPC) has increased the monetary policy rate to help reduce the growth rate of domestic money supply and moderate exchange rate pressures by incentivizing the retention of foreign capital and credit lines. However, inflationary pressures are expected to continue particularly with the election cycle ahead and further development in global inflation trend.

The Stock Market

Activities on the Nigerian Bourse witnessed an improvement in Q2 2022 as the All Share Index (NSE-ASI) and Market Capitalization closed at 51,817.59 points and ₦27.94 trillion, compared to 46,965.48 points and ₦25.311 trillion in Q1 2022 indicating a gain of 10.33% (ASI) and 10.36% (Mkt Cap), respectively.

Following improved liquidity in the country’s bourse, trading activities increased in Q2: 2022 when compared with Q1 2022 as the total volume of equities traded increased by 40.11% and the total value of equities traded rose by 8.5%. The increased activities on the bourse was as a result of positive sentiment exhibited by the trading investors during the quarter and the introduction of derivatives instruments that allow market participants to either go short or long term at ease in the equity market, which increased the liquidity on the bourse.

The Bond Market

According to the S&P/FMDQ, Sovereign Bond Index, which tracks the performance of sovereign debt publicly issued by the Federal Government of Nigeria, increased by 0.51% as it grew from N618.54 Billion as 31 March 2022 to N621.69 Billion as at 30 June 2022. The Monetary Policy Committee increased the policy rate (MPR) by 150 bps from 11.5% to 13.00% in the month of May 2022, in other to curb the rising inflation rate in the economy that was caused by the rising cost of energy prices due to the Russian Ukraine war. The increase in the MPR resulted in increase in short-and-medium-term yield.

Check below for PensionNigeria breakdown of all the important aspects of the PenCom 2nd Quarter 2022 Report

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DONT MISS our 2nd Quarter 2022 Report Series

PenCom 2nd Quarter 2022 Report Executive Summary
Analysis of Pension Operating Environment Q2 2022
Performance of all PFAs in Nigeria for January to June 2022 (Year to Date)

Micro Pension Return on Investment (ROI) for January to June 2022 for all PFAs in Nigeria (Year to Date)
Update on RSA Transfer System (RTS) 2nd Quarter 2022
List of Organisations Issued Compliance Certificates as at 30 June 2022
Status of Contributory Pension Assets as at June 2022
Status of Implementation of CPS in States as at 30 June 2022
Micro Pension Registrations per PFA & Fastest Growing PFAs as at 30 June 2022
Appointment & Resignation of Pension Operators’ Board Members and Top Management Q2 2022
PFAs’ Total Shareholders’ Fund now ₦211.26 Billion
Update on NSITF & Refund of Pension Contribution to Military & SSS Q2 2022
Recovery Agents recover ₦22.13 billion from Defaulting Employers as PenCom receives 89 complaints
Lagos State committed to ₦2 billion Monthly to clear Outstanding Accrued Rights of its Retirees, this is how the State has performed
PenCom refunds N4.27 Billion as Zamfara State withdraws from Contributory Pension Scheme, what lies ahead for Retirees
PenCom Engagements with State Governments to ensure Retirees receive Pension as and when due Q22022
Micro Pension Contribution per PFA Q2 2022
RSA Registration Age and Gender Breakdown Q2 2022
Update on the Micro Pension Plan Q2 2022
Biggest PFAs & Fastest Growing PFAs by RSA Registrations 30 June 2022
PenCom approved over N1.58 Trillion for PFAs to pay RSA Holders as at June 2022

Also Check out
Performance of all PFAs in Nigeria for Full Year 2021

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