₦3.77tr Pension Funds Idle, Says Pencom Chief

Despite the availability of ₦3.95 trillion pension funds for Nigeria to finance its infrastructure challenges, only ₦156.3 billion has been utilized, leaving ₦3.77 trillion untapped, the Director-General, National Pension Commission (PenCom), Mrs. Chinelo Anohu-Amazu, has said. She said the Pension Reform Act 2014 introduced Infrastructure Funds and Bonds to bridge the gap in infrastructure and housing the financing.

Mrs. Anohu-Amazu, whose views are contained in a document made available to The Nation, said the Commission has been making efforts to stimulate growth in the economy by introducing new asset classes into the portfolio of the pension funds as provided by the PRA, 2014.

The Nation report continues:

The PenCom chief said the Act has stipulated the allowable instruments for investment of pension funds and assets, stressing that the instruments must be structured and traded on the platform of a Stock Exchange licensed, or recognized by the Securities and Exchange Commission (SEC); and Money Market Platforms approved by the Central Bank of Nigeria (CBN).

Mrs. Anohu-Amazu said in exercise of its regulatory responsibility, the Commission has issued regulation on Investment of Pension Fund Assets to further guide and advance how the pension contributions should be invested.

The pension assets have been largely invested in Federal Government Securities, Equities, Money Market Instruments and Corporate Debt.

The Commission had earlier said it would issue new investment regulation for pension operators before the end of December this year.

The Commission said it recognized that the expansion of the Contributory Pension Scheme (CPS) has created a dearth of investment outlets.

It was also observed that there is the risk of concentration of investment portfolio especially in Bonds and Fixed Income Securities.

It was gatherd that the amended regulation is currently undergoing the usual Board approval process and would be issued shortly.

It was gatherd that the amended regulation is currently undergoing the usual Board approval process and would be issued shortly.