..Operators say pension transfer window dragged by unavailability of biometrics
Close to 70 percent of Nigeria’s industry-wide N5 trillion contributory pension assets (about N3.5 trillion) is held in the Federal Government bonds and Treasury Bills, as authorities remain optimistic that the recent delisting from the JP Morgan Index will not affect yields significantly.
A bulk of it is in government securities because of its safety 12 percent (about N600 billion) of the N5 trillion assets is invested in equities, and another 15 percent (about N750 billion) in money market, Misbahu Yola, Managing Director, Legacy Pensions and Chairman, Pension Fund Operators Association of Nigeria (Penop) said on Thursday.
Contributory Pension Coverage, in Nigeria totals about 6.7 million as at June 2015, but operators believe that they could have done more if not for obvious challenges of getting more contributors into the scheme.
Pencom and industry operators had agreed to grow participation up to 20 million by 2024 and that is where the informal sector guideline becomes very critical.
Speaking at the end of PENOP consultative forum, held every two months for operators in the pension industry and the regulator (Pension Commission) to discuss policy issues and any other that affect the industry, Yola said that JP Morgan’s delistingof Nigerian bonds ought not to be of serious concern since foreign participation on FG bonds had significantly dwindled even before the recent exit from index.
Yola noted that the main discussions at the forum centred around a number of guidelines that would help boost the industry which were still awaited from the regulator. Those include informal sector multi guidelines, voluntary contributions, minimum pension guarantee, access to mortgage and some few others.
He admitted though, that some of these guidelines have been exposed, while some are waiting for board approval, and hopeful would be done very quickly.
Onyinye Nwachukwu
