PenCom leadership assures stakeholders of economic steady growth with N5.51tr pension investment

By allcitynews.ng

In apparent bid to boost confidence of stakeholders in the pension industry, the leadership of National Pension Commission (PenCom), has assured that the N5.51 trillion pension investment will boost the country’s real sector development.

The Director General, Ms Omolola Oloworaran, who made this known on Tuesday, noted that the investments, will not only span infrastructure, private equity vehicles, real estate, but will also boost sub-national infrastructure initiatives.

Addressing a delegation from the International Monetary Fund, Oloworaran stressed that the meeting was on matters relating to the pension industry and broader financial sector developments.

Oloworaran said pension fund investments in the real sector of the economy indicate the industry’s vital role in providing funding for key economic growth and development in the country.

She added that the industry’s net asset value increased by 22.65 per cent from N18.36 trillion as of December 2023 to N22.51 trillion as of December 2024.

The PenCom helmswoman disclosed that the growth was attributable to additional contributions received and investment income.

Oloworaran decried the limited availability of investable instruments that meet the minimum requirements for pension funds’ investments in the country.

She said only 86 investable instruments, constituting part of the pension broad index, met the minimum quality requirement for liquid pension fund investments with the required free float.

According to her, this is despite the numerous provisions made in the investment regulation to foster increased eligible investment outlets.

Ms Oloworaran said PenCom would continue collaborating with capital market operators to broaden the spectrum of eligible financial instruments for pension fund investments.

She said the initiative aimed to diversify portfolios and enhance real returns, adding that the PenCom would promote increased pension fund investment in alternative asset classes.

Moreover, Oloworaran stated that the efforts will strengthened the overall investment portfolio and reinforced the Contributory Pension Scheme’s long-term growth and sustainability.

She explained that PenCom presented key developments within the pension industry, focusing on investment strategies, asset quality concerns, financing for growth, and regulatory challenges.

Furthermore, Oloworaran reiterated that the commission’s commitment to fostering the development of diverse asset classes and securities eligible for pension fund investments, would involve collaboration with entities like the Securities and Exchange Commission, the Debt Management Office and the Pension Fund Operators Association of Nigeria.

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