The Director General of the National Pension Commission (PenCom), Omolola Oloworaran, says the N5.51 trillion pension investment will boost the country’s real sector development.
This is contained in a statement issued by the management of the commission in Abuja on Tuesday.
The investments, she said, span infrastructure, private equity vehicles, real estate, and subnational infrastructure initiatives, among others.
Oloworaran made this disclosure during a meeting with a delegation from the International Monetary Fund (IMF).
She said that the meeting was on matters relating to the pension industry and broader financial sector developments.
Oloworaran said that pension fund investments in the real sector of the economy are indicative of the industry’s vital role in providing funding for key economic growth and development in the country.
She said that the industry Net Asset Value (NAV) increased by 22.65 per cent from N18.36 trillion as at December 2023 to N22.51 trillion as of December 2024.
The D-G said that the growth was attributable to additional contributions received and investment income.
Oloworaran decried the limited availability of investable instruments that meet the minimum requirements for pension funds’ investments in the country currently.
She said that only 86 investable instruments, constituting part of the pension broad index, met the minimum quality requirement for pension fund investments that are liquid and have the required free float.
According to her, this is in spite of the numerous provisions made in the Investment regulation to foster increased eligible investment outlets.
Oloworaran said that going forward, PenCom would continue to collaborate with capital market operators to broaden the spectrum of eligible financial instruments for pension fund investments.
She said that the initiative aimed to diversify portfolios and enhance real returns, adding that the Commission would promote increased pension fund investment in alternative asset classes.
The D-G said that these efforts were to strengthen the overall investment portfolio and reinforce the long-term growth and sustainability of the Contributory Pension Scheme (CPS).
She said that PenCom presented key developments within the pension industry, focusing on investment strategies, asset quality concerns, financing for growth, and regulatory challenges.
Oloworaran reiterated the Commission’s commitment to fostering the development of diverse asset classes and securities eligible for pension fund investments.
She said this would involves collaboration with entities like the Securities and Exchange Commission (SEC), the Debt Management Office (DMO) and the Pension Fund Operators Association of Nigeria (PenOp).
The IMF delegation was led by Mr Jose Luna, Senior Financial Sector Expert.
Luna expressed satisfaction with PenCom’s ongoing efforts to diversify pension fund investments.
