Only 5% of pension fund earmarked for infrastructure accessed- PenCom

Matthew Otoijagha

The National Pension Commission (PenCom) has said 20 per cent of the N8 trillion pension funds has been earmarked for investment in infrastructure of which less than five per cent has been accessed.

The Acting Director-General PenCom, Mrs. Aisha Dahiru-Umar, said this yesterday at the Chartered Insurance Institute of Nigeria (CIIN) 2018 June Edition Breakfast Seminar in Lagos.

Dahiru-Umar, who was represented at the event by the Head, Contribution & Bond Redemption Department, PenCom, Olulana Loyinmi, noted that pension fund is available for development of infrastructure, stressing that the fund remains a veritable tool to enhance economic development.

According to her, at least, 20 per cent of pension portfolio is available for infrastructure financing, adding that infrastructure bonds have 15 per cent, while Funds, five per cent.

She maintained that there are few qualified infrastructure projects and instruments, such that allocated funds are under-utilized, stressing that low liquidity; inadequate credit risk rating; crowded effects and more hampered the growth of local corporate bonds, hence, pension funds concentrated in government securities.

She canvassed the creation of more investment outlets – infrastructure bond/funds with appropriate credit enhancements.

President, CIIN, Funmi Babington-Ashaye; said annuity and pension funds constitute a major source of institutional investments in Nigeria, adding that such funds, because they are long term in nature can be channeled for development of much needed infrastructure in Nigeria and such infrastructures include transportation, communication, water and electric systems.

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