Federal Government wants Pension Operators to Invest more funds under the Contributory Pension Scheme in Infrastructural Development of the Country.

Federal Government is liaising with National Pension Commission to allow operators of the Contributory Pension Scheme provide more funds for infrastructural development in the country.

This was disclosed by Vice-President Yemi Osinbajo during the second annual conference of the Nigerian Chartered Institute of Bankers of Nigeria in Abuja. He also said the government was discussing with the banks on how to reduce the risks associated with the loan.

He said,
“We are also in discussions with PenCom, and some of these discussions we’ve had with some banks already along with PenCom to de-risk pension funds in order to enable lending for infrastructure development.”

The total assets under the Contributory Pension Scheme as at the end of July 2019 is approximately N9.37 Trillion. The following are the infrastructure related investments PensionNigeria highlighted from the analysis of the places pension funds were invested as at 31 July 2019. It totals to 3.08% of the total pension assets as at 31 July 2019.

Corporate Infrastructure Bonds N5.34b (0.06%)
REITs (Real Estate Investment Trust) N11.80b (0.13%)
Real Estate Properties N241.11b (2.57%)
Infrastructure Fund N30.14B (0.32%)

Corporate Infrastructure Bonds
Corporate Infrastructure Bonds are Bonds issued by the private sector with the purpose of financing infrastructure projects of public interest.

REITs (Real Estate Investment Trust)
REITs (Real Estate Investment Trust) own, and in most cases operates, income-producing real estate.

Real Estate Properties
Real Estate Properties are direct investment in real estate be it land or buildings.

Infrastructure Fund
Infrastructure Fund provide the opportunity to invest in essential public assets, such as toll roads, airports and rail facilities.