Contributory Pension Fund Hits N5 tr – DG PenCom | Independent Newspapers Limited
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Contributory Pension Fund Hits N5 tr – DG PenCom

Posted: Oct 6, 2015 at 12:35 am   /   by   /   comments (0)

 As Experts Mulls Investment Strategies For Pension Funds

By Innocent Oweh,


The Contributory Pension Fund (CPF) managed by the National Pension Commission (PenCom) has seen a steady increase in the last ten years, pegging at over N5 trillion in the last quarter of 2015.

This was disclosed by Chinelo Anohu-Amazu, Director-General of the Commission at the second edition of the World Pension Summit, Africa Special, holding in Abuja currently.

Mrs. Chinelo Anohu-Amazu

Mrs. Chinelo Anohu-Amazu

While stakeholders in the pension industry foresee greater prospects in the years ahead, despite dwindling oil prices, they are also mulling to exploit areas where sustainable investments can be made for better welfare packages. 

The summit has as its theme: “Building Sustainable Pension Systems in Africa.”

According to Anohu-Amazu, a contemporary economic trend underscores the need for a more robust and enduring strategies for pension fund regulation in the continent.

She said sustainable pension systems in Africa were reflective of the emerging consensus of the continent on the need to institutionalise a practical pension system, noting that such would create an opportunity for African countries to share experiences on best practices in the development of their respective pension industries, while fostering positive local and global perceptions.

“The aim of the summit is to evolve measures to tackle the plethora of development challenges that plagued Africa in the 21st Century. It is also in line with the multilateral paradigm shift of promoting sustainable development goals within the institutional framework of the United Nations 2030 Agenda for sustainable development.

“This summit would attempt to address  the most appropriate strategies for leveraging pension funds in the continent to expedite the execution of critical infrastructure projects.

“It would also facilitate the setting out of economic pre-conditions and initiatives that are needed for longer-term growth as well as to foster poverty eradication,” She said.

She said that infrastructure development, undoubtedly, remained a key enabler of sustainable development in Africa, while insisting that the current rapid increase in the size of pension funds in the continent had provided a rare opportunity for multi-sectoral collaboration in bridging Africa’s infrastructure deficit.

According to her, it is important for regulators to consider issues of unemployment, diseases, poverty and climate change in designing their pension regulatory framework.

She expressed hope that the summit would expose novel approaches to long-term stability of financial markets and that the pension industry recognised the creation of long-lasting return on pension assets.

She explained that the recognition was dependent on transparent, predictable and well governed environmental and economic systems that were underpinned by clearly defined prudential regulatory guidelines,

noting that pension managers all over the globe were changing their mandates to reflect considerations of sustainable investment and growth.

According to her, the PenCom is committed to mainstreaming sustainability strategy and practice in the discharge of its statutory functions.

Meanwhile, Chairman of the World Pension Summit, Erick Eggink, underscored the importance of the pension summit, insisting that it was meant to inculcate relevant knowledge of pension administration in pension professionals in Africa.

Eggink said that the summit became necessary given the introduction of new reforms in the Africa pensions systems.

He said that the reforms were designed to improve Africa pension systems, noting that the idea was to share global best knowledge on how best to run the pension industry.

“I foresee a situation where participants here will imbibe best practices on how to structure and invest in pension industry, “he said.

Present at the opening ceremony were Gov. Udom Emmanuel of Akwa-Ibom State, Senators, pension experts in Nigeria and Africa and top government officials