The Director Basic of the Nationwide Pension Fee (PenCom), Omolola Oloworaran, has said that pension fund investments totalling N5.51 trillion are taking part in a pivotal function in driving Nigeria’s actual sector improvement.
The Information Company of Nigeria (NAN) studies that Oloworaran made this identified in a press release issued by the Fee on Tuesday in Abuja, following a gathering with a delegation from the Worldwide Financial Fund (IMF) on the state of the pension trade and broader monetary sector dynamics.
In response to her, the pension belongings have been strategically channelled into infrastructure, personal fairness, actual property, and subnational infrastructure initiatives, reinforcing the sector’s rising contribution to nationwide financial progress and improvement.
She revealed that the Internet Asset Worth (NAV) of the pension trade recorded a considerable improve of twenty-two.65%, rising from N18.36 trillion as at December 2023 to N22.51 trillion by December 2024. This, she stated, was largely pushed by constant pension contributions and rising funding earnings.
Regardless of this vital progress, Oloworaran flagged the restricted availability of investable devices that meet the regulatory thresholds for pension fund deployment.
She famous that solely 86 investable devices, constituting a part of the pension broad index, met the minimal high quality requirement for pension fund investments which can be liquid and have the required free float.
PenCom to create extra funding avenues
That is regardless of provisions in PenCom’s Funding Regulation that intention to create extra eligible funding avenues. She added that the Fee will ramp up efforts to collaborate with capital market stakeholders to broaden the investable universe for pension funds.
- Going ahead, PenCom plans to accentuate engagement with key establishments such because the Securities and Change Fee (SEC), the Debt Administration Workplace (DMO), and the Pension Fund Operators Affiliation of Nigeria (PenOp) to strengthen regulation and promote extra revolutionary monetary devices.
- She stated that these efforts have been to strengthen the general funding portfolio and reinforce the long-term progress and sustainability of the Contributory Pension Scheme (CPS).
- Oloworaran additionally highlighted PenCom’s ongoing strategic evaluation of funding frameworks, addressing points equivalent to asset high quality, financing for financial progress, and regulatory constraints going through pension fund managers.
She reiterated the Fee’s dedication to fostering the event of different asset lessons which can be each safe and return-generating. This consists of inexperienced bonds, infrastructure funds, and enterprise capital funds that may increase Nigeria’s long-term progress trajectory.
IMF lauds PenCom
The IMF workforce, led by Mr. Jose Luna, Senior Monetary Sector Skilled, expressed satisfaction with PenCom’s funding technique and regulatory oversight.
He praised the Fee’s deal with long-term funding ideas and acknowledged its contribution to deepening Nigeria’s monetary markets.
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