The Pension Fund Operators Association of Nigeria, PenOp, has said pension assets will hit the N20 trillion mark in the next eight years, up from the current N5.32 trillion,
Chairman, PenOp, Eguarekhide Longe, who made the disclosure at a media retreat organized by the association in Lagos, also lauded the National Pension Commission (PenCom), the industry regulator, for its latest decision in asking the federal government to transfer its subvention for the year into payment of Accrued Rights of workers who worked for government and were transferred from the old scheme to the contributory pension scheme.
The Federal Government is said to be owing over N20 billion Accrued Rights of workers which it supposed to transfer to Contributory Pension Scheme fund managers through PenCom.
The non-transfer of the money has been truncating the smooth running of the existing contributory pension scheme and payment of benefits to the workers and pensioners concerned.
Longe said pension fund managers cannot in any way compromise in protecting the already accumulated asset from contributors but would guard its safety jealously through wise and profitable investments and develop new ways of growing the fund.
He said one of the ways of growing the fund is through promotion of micro pensions to increase the number of contributors into the scheme.
He noted that many Nigerians complained that pension fund investment has not made the desired impact in the economy especially in the area of infrastructural development, explaining pension industry or pension fund managers cannot be blamed for that situation. According to over 70 per cent of pension fund is currently invested in government bond.
“It cannot be blamed on the industry but on the structure of the country because there is over 70 per cent of pension fund in government bonds. Some governments have invested the money in infrastructure to have impact on the local economy and a good example is Lagos State government,” he said.
