PenOp canvasses secured investments of $25bn pension funds

The Chairman, Pension Fund Operators Association of Nigeria (PenOp) Misbahu Yola, has called for the design of safe and secure investments channel to invest the over $25 billion pension funds for real economic development. Mr. Yola who stated this at the 2nd Nigerian Africonomie Forum in Lagos, also advocated for the creation of an enabling […]

The Chairman, Pension Fund Operators Association of Nigeria (PenOp) Misbahu Yola, has called for the design of safe and secure investments channel to invest the over $25 billion pension funds for real economic development.
Mr. Yola who stated this at the 2nd Nigerian Africonomie Forum in Lagos, also advocated for the creation of an enabling environment to facilitate evolvement of quality investible products and alternative asset classes through which the pension assets can be invested safely, with high returns for the contributors.
He noted that as at May 31, 2015, Nigeria’s contributory pension scheme had approximately 6.6 million contributors and assets in excess of $25 billion.
He said the pension industry had only covered less than one tenth of the working population; with assets less than five per cent of Gross Domestic Product (GDP) and the effect on economic development is still at embryonic stage.
Yola maintained that to effect significant changes, it is imperative that the Regulator, Pension Operators and other key stakeholders work together to build a strong and sustainable pension system that works for our environment.
“An enabling environment that facilitates the creation of quality investible products and alternative asset classes through which the pension assets can be invested safely, but with relatively high returns for the contributors must be encouraged. Included in these areas of consideration are private equity, infrastructure bonds and funds, and real estate backed instruments,” he said.