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Monday, May 25, 2015

PenCom to release New Investment Guidelines for over N4.6trn Pension Assets soon

Nigeria’s Pension Commission (PenCom) will soon release guidelines on the new investment structure of the nation’s accumulated contributory pension assets put at over N4.6 trillion today.
 
The guidelines will help push the diversification of the nation’s pension assets because at the moment, slightly over half of the accumulated assets is invested in fixed income- the Federal government bond- and about 11 percent in equities.


In fact, 33 percent of the bonds issued locally are subscribed to by pension assets Nigeria’s pension industry has grown tremendously pushed by reforms in the last ten years, but there are suggestions that the huge asset could begin to fund the nation’s infrastructure, and help close development gaps.
Misbau Umar Yola, MD, Legacy Pension Managers and chairman, Pension Operators of Nigeria, speaking to some select journalists on the outcome of the industry consultative forum at the weekend disclosed that the draft document is being finalised and has been exposed and discussed with all stakeholders for input.

According to him, a major difference between the awaited investment guidelines and the old one is the multi funds structure, but the primary goal is safety, in terms of liquidity and returns.
“We are waiting for it, may be by June, it will be released,” he noted.
The consultative forum allows PenCom to meet operators every two months to discuss issues that affect the industry – both operational and strategic.
Yola said a critical challenge that was discussed at the meeting is compliance (registration and remittance) and how to get the informal sector on board.
Meanwhile, the recovery agents engaged by PenCom have already made recoveries of about N7.5 billion.

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