PFAs invest N74.54bn in infrastructure, investors eye pension funds

Agency Report
Agency Report

Pension Fund Administrators invested N74.54bn in infrastructure from the N13.76tn under the Contributory Pension Scheme as of the end of February 2022.

This was contained in the latest figures obtained from the National Pension Commission.

Investors have continued to lobby operators of the scheme to pump more of the funds into infrastructure development.

The Governor of  the Central Bank of Nigeria, Godwin Emefiele, said the bank was seeking to access part of the pension funds for infrastructure projects.

He said this at the InfraCorp term-sheet signing event in Lagos.

According to him, InfraCorp is a government-backed infrastructure investment vehicle established and co-owned by the CBN, Africa Finance Corporation, and Nigeria Sovereign Investment Authority (the promoters) and managed by its own board and management.

The vehicle, he said, was established to harness opportunities for infrastructure development in Nigeria by originating, structuring, executing, and managing end-to-end bankable projects, managed by reputable and highly experienced infrastructure asset managers and in partnership with public and private sector participants.

He said InfraCorp would mainly leverage public-private partnerships to unlock assets for the development and completion of projects.

Emefiele said, “From today, we are unveiling InfraCo to Nigeria and because we are sure we are confident that the funding of N15tn is available. We have done our scoping we believe that a substantial portion of the N15tn is available locally.

“There is a lot of liquidity today, not just in the banking industry; there is a lot of liquidity that is currently held by our pension funds managers. I understand from the last count that the size of Nigeria’s pension fund is over N13tn.”

He added, “I am told that in another three to five years, Nigerian pension assets will rise to almost N20tn to N25tn. In other countries where infrastructure corporations have worked, pensions funds have been used to develop the infrastructure of those countries.

“Emerging market economies have used private sector funds coming from either pension fund managers or the banking industry to set an example that we here in Nigeria that we stand ready to support infrastructure development, to support the government in the development of Nigeria infrastructure, and that is our solemn pledge today that we will.”

The Pension Fund Operators Association of Nigeria has said the CPS is helping Nigerian workers to save for retirement and provide funds for infrastructure development.

It however stated that the funds could only be invested in assets approved according to guidelines set down by PenCom.

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