PARTHIAN Pensions is extending the duration of its investment portfolios to secure prevailing yields for contributors as Nigeria’s inflation eases and interest rates begin to decline.
Managing Director of Parthian Pensions, Olufemi Odukoya, told Punch in an interview that the pension fund administrator was repositioning its investments to sustain positive real returns while maintaining sufficient liquidity to meet retirement benefit obligations.
Odukoya said the company had started extending duration across its funds following the Central Bank of Nigeria (CBN)’s monetary policy rate cut to 23 per cent in September.
Nigeria’s inflation rate declined from 15.93 per cent in May to 14.63 per cent in September, while yields have begun falling across several asset classes.
“We have begun extending duration across our funds to lock in current yields, as we expect rates to fall further,” Odukoya said.
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Extending portfolio duration allows pension fund managers to secure prevailing interest rates for longer periods, potentially cushioning investment income against further declines in yields.
However, Odukoya said the strategy required careful management of liquidity to ensure pension administrators could meet contributors’ withdrawal and retirement benefit payments when due.
He explained that Parthian Pensions was balancing the pursuit of higher investment returns with the need to preserve sufficient liquidity across its Retirement Savings Account (RSA) funds.
The pension administrator is also seeking to expand its market share through competitive investment performance, digital innovation and improved customer service, particularly as the industry’s transfer window allows contributors to switch between pension fund administrators.
Odukoya said the transfer window had increased competition and created opportunities for operators offering efficient services, transparent communication and strong investment capabilities.
He added that the company was strengthening its digital platforms and customer engagement channels to improve account access, complaint resolution and communication with contributors.
According to him, contributors increasingly expect pension administrators to provide timely information, convenient services and professional management of their retirement savings.
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Parthian Pensions is also targeting workers in the informal sector through its Personal Pension Plan, with flexible contribution options designed to accommodate irregular earnings.
Odukoya said digital onboarding and mobile engagement platforms were helping reduce barriers to pension participation among traders, artisans, small business owners and self-employed Nigerians.
He noted that expanding pension coverage would require greater awareness of retirement planning and savings options beyond formal employment.
On investment opportunities, Odukoya said the company was gradually increasing exposure to equities, corporate debt and infrastructure within regulatory limits, following PenCom’s higher equity investment limits.
He said the Parthian Group’s market intelligence and macroeconomic research supported investment decisions, although every opportunity was assessed based on fundamentals, risks and expected returns.
Odukoya added that the company remained confident of meeting PenCom’s recapitalisation requirements within the prescribed timeline, with continued shareholder support from the Parthian Group.
He said the company’s broader growth strategy centred on investment performance, technology-driven services and customer experience, alongside strong governance and risk management.
