National Pension Commission Activities Update - July 2017
"Explore the July 2017 activities of the National Pension Commission in Abuja, Nigeria, including a summary of pension fund assets, initiatives on equity contributions for residential mortgage, and concerns over withholding tax on pension fund dividends."
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Presentation Transcript
An update of activities of the National Pension Commission A Presentation to the: Capital Market Committee Meeting NATIONAL PENSION COMMISSION ABUJA, NIGERIA JULY 2017
Summary of Pension Fund Assets 2 VARIANCE: JUNE 2017 VS MARCH 2017 WEIGHT WEIGHT ASSET CLASSES 30/6/2017 31/3/2017 (%) (%) (%) N' Billion N' Billion N' Billion DOMESTIC ORDINARY SHARES *FOREIGN ORDINARY SHARES (CPFA Funds) FGN SECURITIES: FGN BONDS TREASURY BILLS AGENCY BONDS (NMRC & FMBN) STATE GOVT. SECURITIES CORPORATE DEBT SECURITIES SUPRA-NATIONAL BONDS LOCAL MONEY MARKET SECURITIES BANKS COMMERCIAL PAPERS *FOREIGN MONEY MARKET SECURITIES (CPFA Funds) MUTUAL FUNDS OPEN/CLOSE-END FUNDS REITS *REAL ESTATE PROPERTIES (CPFA and AES Funds) PRIVATE EQUITY FUNDS INFRASTRUCTURE FUNDS CASH & OTHER ASSETS 583.53 94.03 8.54% 1.38% 476.14 90.29 7.42% 1.41% 107.39 3.74 22.55% 4.14% 3,832.29 1,114.15 38.04 112.10 253.13 11.76 56.09% 16.31% 0.56% 1.64% 3.70% 0.17% 3,738.19 931.15 83.36 146.73 255.02 12.47 58.27% 14.51% 1.30% 2.29% 3.98% 0.19% 94.10 183.00 -45.32 -34.63 -1.89 -0.71 2.52% 19.65% -54.37% -23.60% -0.74% -5.69% 436.06 45.90 6.38% 0.67% 357.10 30.75 5.57% 0.48% 78.96 15.15 22.11% 49.27% 23.49 0.34% 21.76 0.34% 1.73 7.95% 17.16 13.38 231.07 17.65 4.83 4.29 0.25% 0.20% 3.38% 0.26% 0.07% 0.06% 8.95 10.02 214.15 17.44 3.63 18.36 0.14% 0.16% 3.34% 0.27% 0.06% 0.29% 8.21 3.36 16.92 0.21 1.20 -14.07 91.73% 33.53% 7.90% 1.20% 33.06% -76.63% NET ASSETS VALUE Note: *CPFA & Approved Existing Scheme (AES) only 6,832.86 100.00% 6,415.51 100.00% 417.35 6.51%
3 Pension Fund assets as at 30 June 2017 As at 30 June 2017, the total value of the pension industry assets increased by 417.35 Billion (6.51%), as it increased from 6.41 Trillion on 31 March, 2017, to 6.83 Trillion as at 30 June, 2017. The net increase in the value of assets was mainly due to new pension contributions and market valuation of equity investments, as a result of appreciation in stock market prices.
4 Update on initiatives of the Commission Development of Guidelines on Withdrawals from RSA towards Equity Contribution for Residential The Commission is working on revised Draft Guidelines on Accessing Retirement Savings Accounts towards payment of Equity Contribution Mortgage. This is being reviewed in liaison with the CBN, which is working on establishing a Mortgage Guarantee Company. Mortgage: for Residential
5 Deduction of Withholding Tax on Pension Fund Dividends Section 10(2) of PRA 2014 states that All interests, dividends, profits, investment and other income accruable to pension funds and assets under this Act shall not be taxable Some Registrars are still deducting Withholding Tax (WHT) on Dividends of equity investments by pension funds; in breach of Section 10(2) of Pension Reform Act 2014.
6 Deduction of Withholding Tax on Pension Fund Dividends The defaulting Registrars are as follows: Africa Prudential Registrars, GTL Registrars and United Securities Limited. In addition, Registrars of the following companies & Investment Fund should comply with Section 10(2) of PRA 2014: i) Mobil Oil Plc; ii)Wapic Insurance Plc; iii)International Breweries Plc; iv) Niger Insurance Plc; v) Lotus Hala Equity ETF; vi)UACN Plc; vii)Aiico Insurance Plc; viii)MRS Oil Plc and ix) Access Bank Plc,
7 Deduction of Withholding Tax on Pension Fund Dividends PenCom had written FIRS requesting for refund of these WHT deductions SEC should call the defaulting Registrars to order and advise all Registrars to desist from further deductions of WHT on pension fund investments
