Pension operators target infrastructural investments

The Chief Executive Officer (CEO), Pension Funds Operators Association of Nigeria (PenOp), Mr Oguche Agudah, has said many pension fund managers would channel their investments to infrastructure this year.

Agudah said this over the weekend during a webinar organised by PenOP, with the theme: “The Nigerian Economic and an Investment Outlook: A focus on Pension Fund Investment Strategies,”

According to him, 42 per cent of the Pension Fund Administrators (PFAs) indicated that they were actively looking for investments in infrastructure in 2023, while 50% would consider it.

“Although fund managers are careful about private equity, they will consider the investment in infrastructure on a deal-by-deal basis. This is because 25% of the fund managers had assured that they would invest in private equity while 67% would consider it.

• Of red goats and agricultural development policy
• Oshiomhole: Naira redesign is senseless, Emefiele deceived Buhari

“Fund managers are looking to invest in impact funds but transparency and structure are key,” he explained.

On various dealings in equities and securities, the PenOp CEO disclosed that there was a reduction in engagement with equities in 2022 from 7.73% in 2021 to 6.79% in 2022.

Agudah explained that government securities as share of portfolio declined by 118 basis points to 65.44%, while there was reduction in interaction with money market securities by 1.92%.

Also speaking, Mrs Rita Babihuga-Nsanze, Chief Economist, Africa Finance Corporation (AFC), said some of the steps the incoming government must take to put the economy on the right path and put an end to fuel subsidy regime.

She said the incoming government must address security in the oil sector corridor, subsidy regime and enthrone the expected reform in the forex market.