Yemisi Izuora
The National Pension Commission (PenCom) has identified gaps in infrastructure projects qualifications to enable them access set aside funds from the pension fund for infrastructure development.
The agency, regretted that presently les than 5 per cent of the 20 per cent from the N8 trillion pension fund earmarked for investment in infrastructure has been accessed.
Offering reasons for this, the Acting Director-General PenCom, Mrs. Aisha Dahiru-Umar, said there are few qualified infrastructure projects and instruments, such that allocated funds are underutilised, stressing that low liquidity; inadequate credit risk rating; crowded effects and more hampered the growth of local corporate bonds, hence, pension funds concentrated in government securities.
She therefore canvassed the creation of more investment outlets – infrastructure bond/funds with appropriate credit enhancements.
The DG who said at the Chartered Insurance Institute of Nigeria (CIIN) 2018 June Edition Breakfast Seminar in Lagos, noted that pension fund is available for development of infrastructure, stressing that the fund remains a veritable tool to enhance economic development.
Dahiru-Umar, who was represented by Head, Contribution & Bond Redemption Department, PenCom, Olulana Loyinmi, said at least, 20 per cent of pension portfolio is available for infrastructure financing, adding that infrastructure bonds have 15 per cent while Funds, five per cent.
President, CIIN, Funmi Babington-Ashaye; said annuity and pension funds constitute a major source of institutional investments in Nigeria, adding that such funds, because they are long term in nature can be channeled for development of much needed infrastructure in Nigeria and such infrastructures include transportation, communication, water and electric systems.