‘Pension Sector Contributing to Economic Growth’
The Nigerian Pension sector, with an accumulated asset recently put at N8.23 trillion by the National Pension Commission (PenCom) has advanced from its immediate objective of ensuring safety and security of the funds to playing a role in the growth of the economy. The fund is also being considered to help in addressing critical funding gap in various sectors of the economy.
Managing Director, IEIAnchor Pension Managers, Glory Etaduovie, said this at a media chat in Lagos recently.
Etaduovie, commended the National Pension Commission (PenCom), which has for more than a decade ensured that the contributory pension scheme (CPS) continued to grow.
He said the commission, through its supervisory functions has been guarding the funds jealously to deliver its mandate to each contributor, notwithstanding pressure from all fronts.
“Accumulating such fund size looks strange in an environment where any sizable accumulating fund is ‘attacked’, while the CPS that looks impregnable, is disturbing to some.
“The industry has survived various attacks. In response, like the sustainable development philosophy, the industry has chosen to go beyond its immediate objectives of being set up, which is safety and security of the pension fund, and availability when needed, to the helping to develop the economy and bridging infrastructural gaps,” he noted.
He said the huge accumulated funds in the sector currently being managed by experts has benefits to the economy.
“It would create more capital and liquidity for firms and to explore growth potentials. Gross Domestic Product would also be enhanced.
“Financial intelligence will grow, and knowledge domiciled, and the international players would hence show more interest in the Nigerian Market,” the IEI-Anchor Pension boss said.
“Consequently, the industry has seen renewed need to continue to enlighten the public and contributors that the security of their fund is not in doubt.
“All Investment returns go into their accounts. The entire contributions and income earned are being continuously invested and reinvested,” he assured.
He said it was in line with the need to ensure and convince contributors about the security of their funds that the regulator commenced the multi-fund investment structure in July.