The National Pension Commission on Tuesday said it was cautious about the planned investment of pension funds in the development of infrastructure, noting that currently, there was no appropriate framework on how the funds would be invested.
The Acting Director-General, PenCom, Mrs. Chinelo Anohu-Amazu, stated this in Abuja at the 2nd Annual National Workshop of the Chartered Institute of Stockbrokers.
She, however, said the commission would be willing to partner with agencies of government on investing pension funds in infrastructural development if there was an appropriate framework.
Pension fund assets in the country, according to findings, currently stand at N3.4tn.
The workshop, with theme, ‘Transformation agenda: The real issues in the power, housing and energy sectors of the economy,’ was attended by stakeholders in both the capital market and the public sector.
Anohu-Amazu said although pension funds could be used for long-term investment, the commission was mindful of the availability of funds to take care of retirees when they were in need of their money.
She said, “I agree that pension funds should go into the power sector, but my worry is how we will do it. I am concerned about the safety of the investments. Until we see structures in that area, we will be circumspect in letting pension funds go anywhere.
“We need to focus not just on quantum of pension assets, but also look at the issue of dearth of investible instruments. What I see is intense pressure on us to bring the money, but we cannot do so without a clear indication on what will happen to the funds.”
She lamented that currently, only 30 per cent of employees in the country had Retirement Savings Account, adding that the commission was looking at avenues to attract the remaining workers so as to boost pension funds.
Anohu-Amazu said, “How many Nigerians have Retirement Savings Accounts? How many of the people itching to get at the funds are actually contributing? The primary aim of the funds is to provide resources for retirees when they need it, while investing in infrastructure is secondary.
“I cannot tell a 70-year old stories when he needs his money. We need to create vehicles for all ages to find succour in the investments.”
Earlier in his address of welcome, the President of CIS, Mr. Muritala Olushekun, said the workshop was designed to bring together key players in the nation’s economy to generate ideas that would serve as inputs into the national budget.
Also speaking at the event, the Minister of Power, Prof. Chinedu Nebo, assured investors in the sector of the safety of their investments as well as increased rate of return on investment.
He said a plethora of investments were required to achieve the 40,000 megawatts target as captured in the Vision 2020 document.
Nebo added that the Ministry of Power was already in a process of self reform to equip itself with the right tools to handle policy issues as well as ensure the creation of a conducive environment for investments in the sector.