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Pension Fund Operators Association of Nigeria (PenOp), has declared its readiness to invest pension funds in infrastructure if government can bring out the blueprint to guide such investment.
Speaking to Daily Sun at the World Pension Summit Africa Special, which held in Abuja, recently, President, PenOp, Mr. Longe Eguarekhide, said that for pension funds to be invested in infrastructure development, a clear strategy is needed from the Federal Government.
The PenOp chief noted that until a clear strategy is provided by the government to enable pension operators and other stakeholders invest in infrastructure development, the issue would continue to be on the front burner without any achievement.
He said, “the issue of infrastructure development requires definite steps to be taken by government because its position in infrastructure development must be clear to operators and the National Pension Commission (PenCom).
“It is true that the industry needs to diversify its portfolio investment such as in infrastructure development but such investment must be clear-headed investment. Presently, there are outstanding projects that pension funds ought to be invested in but have not commenced or are yet to be completed such as the second Niger Bridge. This is as a result of lack of clear strategy because major projects take as long as seven years to come to financial closure.
“The pension industry is willing and has demonstrated its willingness to invest in infrastructure development in the country by attending several meetings with the legislature and labour groups. The rules are clear on investment and government only needs to meet them.”
He said the industry could not appropriate government’s assets and invest in them, noting that government needed to articulate a specific direction for the pension operators to follow.
Eguarekhide disclosed that the operators were looking at commencing small size projects such as power projects that would assist small communities.
The Executive Secretary, PenOp, Susan Oranye, noted that the issue of infrastructure development need is not peculiar to Nigeria, but the whole of Africa. She said the primary focus is the safety of the funds that belong to contributors of the pension scheme.
“A lot of infrastructure bonds that pension funds have, have to do with housing, roads and railways, among others, which can improve the lives of farmers and the agricultural sector. These have positive social effect on the lives of the people. So, we need the government to put together clear strategy that will set the ball rolling for investment,” she added.
