N3.77tr Pension Funds Idle

Despite the availability of N3.95 trillion pension funds for Nigeria to finance its infrastructure challenges, only N156.3 billion has been utilised, leaving N3.77 trillion untapped…

After this statement Chinelo Anohu-Amazu who is the director-general of the National Pension Commission (PenCom) added that the Pension Reform Act 2014 introduced Infrastructure Funds and Bonds to bridge the gap in  infrastructure and housing the financing.

She also said that pension 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.

Anohu-Amazu explained that 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 recognised by the Securities and Exchange Commission (SEC); and Money Market Platforms approved by the Central Bank of Nigeria (CBN).

READ ALSO: Lagos Releases N11bn For Pensions

PenCom stated that 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 source notes that the commission had earlier said it would issue  new investment regulation for pension operators before the end of December this year.

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