Tuesday, 3 May 2016

PenOp identifies obstacles to use of pension funds for infrastructure — By Maduka Nweke

Pensions-ncsl

PENSION Fund Operators Association of Nigeria (PenOp), has identified lack of transparency, shortage of data, lack of genuine investment proposals and risk related greenfield projects as obstacles to investment of pension fund in infrastructure.
Making the revelation recently during a media retreat for Insurance and Pension reporters, organised by PenOp, the Head, Investments, Pensions Alliance limited, Mrs Abimbola Sulaiman, said lack of bankable projects among others are among factors hindering deployment of pension funds to infrastructure. Mrs. Sulaiman in a paper entitled: “Investment of Pensions Funds, Processes- Challenges, Risks and Rewards”, noted some considerations and review of existing rules of engagement were needed to create opportunities for investment in critical areas in the economy. She added that infrastructure bonds remain the easiest way to introduce majority of pension funds into infrastructure investments, as it is similar to traditional bond investments.

Culled from Sun

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