Pension fund drives 7% of Nigerian economic growth’
By Francis Arinze Iloani
The
pension fund assets are contributing about 7 per cent to the growth of
the economy as evident in the 7 per cent contribution to total Gross
Domestic Product (GDP).
Details obtained from the National Pension Commission (PenCom) showed that N8.14 trillion pension assets as at the end of May are not only available to fund retirees’ pension obligations but also are investible funds available for economic development.
“These investments are allowed in structured outlets such as quoted
equities, bonds, money market instruments, infrastructure funds and
private equity,” PenCom stated.Details obtained from the National Pension Commission (PenCom) showed that N8.14 trillion pension assets as at the end of May are not only available to fund retirees’ pension obligations but also are investible funds available for economic development.
The pension regulator said while the non-availability of these products has limited pension funds participation, Pension Fund Administrators (PFAs) have invested over N50 billion in the first federal government’s N100 billion Sukuk issued recently for the construction and rehabilitation of some major roads in the country.
PFAs have also invested about N7 billion in the first N10.69 billion five-year Sovereign Green Bond in December 2017, to fund some environmentally compliant renewable energy projects.
“This implies that the Contributory Pension Scheme (CPS) is fully funded unlike the old Defined Benefits Scheme, which was dependent on budgetary allocations for payment of pensions. Consequently, it contributes to the fulfilment of the first Sustainable Development Goal by reducing old age poverty in Nigeria,” the Commission stated.
Culled from Daily Times
