US Investors Seek More Inflow of Pension Funds into Nigerian Equities

By Aduragbemi Omiyale

Institutional investors from the United States have asked for regulatory reforms in the Nigerian capital market to make the ecosystem more attractive to them.

The American investors, who spoke under the Institutional Investor Network, want Nigeria to allow more inflow of pension funds into the equity market.

The Senior Investment Advisor at Prosper Africa, Mr Cameron Khowsroshahi, who led the US delegation to Nigeria, stated that in the US, pension fund administrators were allowed by regulation to invest 60 to 75 per cent of their capital into equities and funds targeting equities.

Mr Khowsroshahi also noted that there needs to be a new chapter in Africa and the US economic relationship, adding that private capital from both sides plays a pivotal role in achieving sustainable solutions for Nigeria and Africa.

In his remarks, the Chairman of the Nigerian Exchange (NGX) Group Plc, Mr Umaru Kwairanga, said the firm has been engaging the government to further develop the capital market, including removal of capital controls; legislation to enhance the attractiveness of listings, pension reforms, policymaking to facilitate dollar-denominated market transactions, and the establishment of a private market.

“Significant opportunities for mutual economic expansion abound between the United States and Nigeria,” he said, concluding that NGX Group is positioned to facilitate more investment inflows.

On his part, the chief executive of NGX Limited, Mr Temi Popoola, emphasised the innovative activities of the exchange around catalysing capital formation by both foreign and domestic investors.

“We are working hand-in-hand with the government to create an attractive environment for listings and also on product innovation that can creatively channel more funds into the market,” he said.

Mr Popoola also mentioned NGX’s technology innovations, including the Technology Board to encourage listings from tech startups, and digital market access that will spur the younger generation of Nigerians to invest in the market.