Pension Funds Key To Nigerian Economy—PenCom DG
Director General of the National Pension Commission (PenCom), Mrs Chinelo Anohu-Amazu, has stressed the importance of pension in the Nigerian economy.
Speaking at the 17th annual lecture of the Catholic Brothers United (CBU) in Lagos, Mrs Anohu-Amazu said the role of pension to the economy of a country can never be overlooked.
The PenCom boss, who was at the occasion as a special guest of honour, also noted that Nigeria’s pension fund assets had seen a dramatic growth over the decade, from about N2 trillion deficit in June 2004 to N5.74 trillion as at the second quarter of 2016.
Mrs Anohu-Amazu, who spoke on the theme: ‘The Use of Pension Funds as Catalyst for Economic Diversification,’ said, “The Nigerian pension funds are playing two critical roles in the local economy. The first and most important is ensuring that retirees receive their retirement benefits as and when due. The second role of the fund is the positive impact on the economic growth and development, which is directly related to their investment activities.”
She hinted that the Commission is proposing N3trillion investment to boost infrastructure development in critical sectors of the economy.
Mrs Anohu-Amazu revealed that the pool of funds is being invested on behalf of the contributors based on the provision of the Pension Reform Act 2014 on stipulated allowable instruments for investment of pension funds and assets.
She remarked that pension funds have become very important source of financial intermediation.
According to her, “They play significant role as vehicles for pooling and mobilising savings for funding long-term investments.”