AGANGA CANVASSES FOR OFFSHORE AND DOLLAR LINKED INVESTMENTS FOR NIGERIAN PENSION FUNDS
The former Minister for industry, trade and investment, Olusegun Aganga has canvassed for Nigerian pension funds inorder to able to invest a portion of their assets offshore and in index/inflation linked instruments.
Aganga who spoke at a training organised for board members and directors of pension fund operators in Nigeria which was organized by PenOp and FITC in conjunction with PENCOM said, the devaluation of the naira and rising inflation could lead to an erosion of earnings for the pension funds and subsequently, old age poverty for pensioners and retirees.
He explained that, the devaluation of the local currency and rising inflation could lead to an erosion of earnings for the pension funds and subsequently, old age poverty for pensioners and retirees.
He emphasized that, the industry needs to get this going as soon as possible so that the industry could protect the gains of the pension reforms and truly provide financial security for retirees.
At that forum, Aganga reels out that the directors of pension funds need to work together with the State Governments, the National Executive Council and the Federal Government to ensure that more states get onboard the contributory pension scheme and to ensure that those states already on the scheme remit both employer and employee contributions to the pension fund administrators as and when due.
Adding that, ” it was quite regrettable that a number of states were deducting pension contributions from their employees, but were not remitting it, which he said does not augur well for the future of Nigerian workers and it should be discouraged.”
Aganga, who is also the chairman of Leadway Pension PFA, urged directors to realize their critical positions in shaping policies, guiding directions and setting “the tone” at the top of their organizations.
The Chief Executive Officer of PenOp, Oguche Agudah who organized the sessions for directors explained that it is an opportunity for directors of pension fund operators to come together and work towards the growth of the industry.
Adding that it’s an opportunity to build camaraderie within the industry to align interests and to engage with each other and the regulator.