The federal government and stakeholders in Nigeria’s pension industry have begun discussions on the possibility of investing a portion of the industry’s accumulated financial assets worth about N5.39 trillion into the country’s power sector and other infrastructure.
THISDAY gathered from the Managing Director of Sigma Pensions Ltd, Mr. Umar Modibbo during a recent meeting in Abuja that the industry’s discussions with the government have largely been driven by the Minister of Power, Works and Housing, Mr. Babatunde Fashola.
Modibbo stated that Fashola was recently invited to attend a retreat by the industry stakeholders, where issues regarding the possibility of the industry investing part of the financial assets it accumulated from the contributory pension scheme in the power sector. He said subsequent discussions have then followed on the issue.
“We had a discussion sometime last year when the minister was invited to our retreat. We are generally talking with him on infrastructure because the pension industry is generally amenable to investing provided we have the right instruments and guarantees that the monies we will put in will be returned, that is the major consideration, the moment these issues are sorted, I don’t think the industry will have any problem investing in the sector,” said Modibbo.
Nigeria’s Pension Commission (PenCom) in March, 2016 reportedly disclosed that the total pension fund assets accumulated since the pension fund Act was reviewed has grown to N5.39 trillion.