Okunrinboye seeks institutional support for Nigeria’s $1Tr economy target

The Chief Investment Officer of Access ARM Pensions, Wale Okunrinboye, has called on long-term and institutional investors to take a more active role in financing sectors critical to Nigeria’s industrialisation and economic growth.

Speaking at the 9th Nigerian Association of Insurance and Pension Editors (NAIPE) conference in Lagos, Okunrinboye highlighted the need for pension funds, insurance companies, and other key financial stakeholders to collaborate with the government to achieve Nigeria’s ambitious goal of becoming a $1 trillion economy.

He said countries transitioning from underdeveloped to developed economies typically undergo a robust phase of industrialisation, followed by the growth of high-service sectors.

However, Nigeria, like many Sub-Saharan African nations, has largely bypassed the industrialisation phase, relying heavily on the services sector. This gap, he noted, poses a significant challenge in job creation and fostering sustainable economic growth.

Okunrinboye stressed that attracting both local and foreign investments is essential for Nigeria to become a fully industrialised economy. He urged pension funds and other long-term investors, traditionally focused on government securities, to diversify their portfolios into critical sectors that can drive industrialisation.

“To transition into a fully industrial economy, we need to attract investments, some of which should be local and some foreign. This is where pension funds and other long-term investors come in. A large portion of pension fund investments is currently in government securities, but recent discussions have focused on the need to invest beyond government securities as a way to catalyse and develop the economy,” Okunrinboye said.

He continued: “For long-term investments, pension funds, insurance companies, and the broader financial system, it’s time to engage the economy, collaborate with the government, and work with stakeholders to develop financing arrangements that support critical projects. These projects should help Nigeria achieve industrialisation and boost exports.”

“For institutional investors, now is the time to find ways to directly engage with the economy. We must invest in projects that drive industrialisation and are export focused. By doing so, we will generate revenue, enhance exports, create jobs, and increase tax revenues, ultimately propelling Nigeria towards the $1 trillion economy target set by the government.”