The National Pension Commission (PenCom) has said that it is in the final stage of reviewing the current rules to invest in infrastructure and private equity to boost returns on retirement savings.
PenCom Spokesman, Ibrahim Buwai, who stated this, yesterday, however, didn’t give details on the new limits being considered but said that they could be released before the close of this quarter.
“The review will also “significantly” cut a requirement that pension fund administrators can only invest in infrastructure funds that devote at least 60 per cent of their portfolio to projects domiciled in Nigeria,” he said.
Meanwhile, a senior PenCom official said the review was aimed at striking a balance between safeguarding contributors’ funds and unlocking capital for national development.
However, a Lagos-based economist, Dr Chika Onyeka, has described the move as timely, saying: “Nigeria has a huge infrastructure financing gap estimated at over $100 billion. Pension funds, if prudently managed, can provide the capital needed to close that gap. The review is a win-win for retirees and the economy.”
Also, a pension industry consultant, Abiola Fashina, said: “Global best practices show that pension funds can successfully invest in alternatives when there is transparency, accountability, and professional management. Canada, Chile, and South Africa have achieved this balance, and Nigeria can learn from those models.”
Meanwhile, the PenCom has said that about N4.57 billion pension funds have been recovered from defaulting employers between the first quarter of 2024 and the first quarter of 2025.
Chief Executive Officer of Pension Fund Operators Association of Nigeria (PenOp), Oguche Agudah, who disclosed this yesterday, said the amount comprised N2.12 billion in outstanding pension contributions and N2.45 billion in penalties.
According to him, these were recovered by an enforcement team of PenCom from 138 employers found to have defaulted in remitting workers’ pension funds.
