By Chinwendu Obienyi
The Securities and Exchange Commission (SEC) has put the total pension assets under management (AuM) at N7.79 billion as at September 2021.
Its Director General, Lamido Yuguda, stated this Wednesday during a webinar, with the theme: “The Imperative of Non-Interest Capital Market for Pension Industry.
While noting that the non-interest finance segment holds great potential in furthering the development of the capital market and the growth of the nation’s economy, Yuguda said that the pension industry is one of the fastest growing sectors with assets under management of N13 trillion as at the end of September 2021.
He added that, of this impressive amount, less than N80 billion is invested in Sukuk, representing a little less than 1 per cent of total pension assets under management.
According to him, the development calls for more innovative financial products to deepen Nigeria’s market and sustain the growth in the industry, especially in the non-interest segment.
“We strongly believe that the capital market has a leading role to play in this regard by providing a variety of long-term investable products to service the needs of the pension industry as well as other investors with similar focus.
“It is encouraging that the National Pension Commission (NPC) has taken concrete steps to improve the regulatory framework for the investment of pension funds in the non-interest capital market by the introduction of operational framework for the non-interest fund.
“This will no doubt provide an additional opportunity for retirement savings account holders and retirees to invest their savings in financial instruments that are aligned with their goals and objectives. Indeed, the operationalisation of the funds definitely accelerates the national financial inclusion agenda while increasing the quantum of investible funds by unlocking the untapped capital”, the SEC boss explained.
Yuguda stated that as at September 2021, the total assets stood at N7.79billion, constituting about 0.059 per cent of total pension assets under management and expressed the hope that the fund assets would grow with robust public awareness, education programmes and capacity building of stakeholders through seminars, workshops and programmes.