Yemisi Izuora
An Insurance Expert, Mr Adebayo Adeleke has warned that the Nigeria Insurance and Pension sector pool fund of over N3.8 trillion might not be beneficial to the economy except it is invested in positive rate.
Speaking at the Nigerian Insurance and Pension Awards organised by Inpoenonline in Lagos, Adeleke said that the sector’s over N3.8 trillion may hit down turn as the Pension Fund Managers (PFAs) are constrained by regulation to be extremely conservative.
He said that the value of pension is put at N 3.8trillion ($24b) as at Oct 2013, adding, “Global value of pension stands at 70 trillion dollars. The country’s Pension has growth potential over the next seven to 10 years. of reaching N140 trillion.
The big question here is where will these trillions of Naira be invested at a positive rate of return without fuelling asset bubble.”
Proffering solution, Adeleke urged insurance regulators to be compassionate on some of conservative regulations, as there is nothing bad if the PFAs invest in real estates.
He further recommended investments in Small and Medium Enterprises which are the engine room of economic development and social stability as well as the agricultural sector.