The National Pension Commission (PenCom) is revising the 70% profile of pension fund investments in Federal Government of Nigeria (FGN) securities.
The Commission is determined to revise the 70% uptake rate by promoting an investment environment that reduces obligor risks and hedges pension fund assets against inflation.
The goal is to have a more measurable impact on the economy by diversifying and increasing pension fund investments in infrastructure, real estate, and other alternative assets. Ibrahim Kangiwa, the Commission’s Head of Research and Strategy Management Department, revealed this to reporters in Lagos.
Kangiwa stated that due to a scarcity of infrastructure and alternative asset products in the financial markets, pension fund investments have remained largely in favor of FGN Securities.
Speaking about the Commission’s efforts to increase the uptake of pension fund investments, he stated that engagement with relevant stakeholders to promote safe infrastructure development investment was ongoing.
He also stated that there were collaborations with some government agencies as well as the organized private sector for viable Public-Private Partnership in infrastructure for pension fund investment.
He also stated that the Non-Interest Fund (Fund VI) was established as one of the Fund types to be managed by PFAs, noting that this required Pension Fund Administrators (PFAs) to invest Fund VI assets in ethical and non-interest compliant instruments in accordance with Islamic Financial Jurisprudence.
Source: The Nation