N5.51trn pension investment will boost economic development—PenCom

The director-general of the National Pension Commission, Omolola Oloworaran, says the N5.51 trillion pension investment will boost the country’s real sector development. This was announced in a statement.
The investments, Ms Oloworaran said, span infrastructure, private equity vehicles, real estate, and subnational infrastructure initiatives. Ms Oloworaran disclosed this disclosure during a meeting with a delegation from the International Monetary Fund. She said the meeting was on matters relating to the pension industry and broader financial sector developments. Ms Oloworaran said pension fund investments in the real sector of the economy indicate the industry’s vital role in providing funding for key economic growth and development in the country.
She added that the industry’s net asset value increased by 22.65 per cent from N18.36 trillion as of December 2023 to N22.51 trillion as of December 2024.
The PenCom director-general said the growth was attributable to additional contributions received and investment income. Ms Oloworaran decried the limited availability of investable instruments that meet the minimum requirements for pension funds’ investments in the country. She said only 86 investable instruments, constituting part of the pension broad index, met the minimum quality requirement for liquid pension fund investments with the required free float. According to her, this is despite the numerous provisions made in the investment regulation to foster increased eligible investment outlets. Ms Oloworaran said PenCom would continue collaborating with capital market operators to broaden the spectrum of eligible financial instruments for pension fund investments.
She said the initiative aimed to diversify portfolios and enhance real returns, adding that the PenCom would promote increased pension fund investment in alternative asset classes.
Ms Oloworaran also mentioned that these efforts strengthened the overall investment portfolio and reinforced the Contributory Pension Scheme’s long-term growth and sustainability. She explained that PenCom presented key developments within the pension industry, focusing on investment strategies, asset quality concerns, financing for growth, and regulatory challenges. Ms Oloworaran reiterated the commission’s commitment to fostering the development of diverse asset classes and securities eligible for pension fund investments. She said this would involve collaboration with entities like the Securities and Exchange Commission, the Debt Management Office and the Pension Fund Operators Association of Nigeria. NAN