Nigeria’s pension fund assets have experienced a steady growth from N2.9 trillion in December 2012, to N4.1 trillion as of January 2014, a development the National Pension Commission (PENCOM) linked to committed implementation of the investment regulations, which has continued to ensure the safety of pension funds.
Chinelo Anohu-Amazu, acting director-general, PENCOM, disclosed this in Lagos during UBA Capital first domestic institutional investor forum that focused primarily on the pensions industry with the theme: “The Critical Role of Institutional Investors in Corporate Governance.”
The PENCOM has continued to promote closer collaboration with other domestic regulatory agencies as well as multilateral development finance institutions in order to encourage secure outlets for pension fund investments, Anohu-Amazu said.
According to her, the success story of the pension reforms in Nigeria has attracted some positive feedback from our peer countries, as “some of the emerging market reformers, who initially expressed doubts in the pension reforms later returned to scrutinise the model for adoption in their own markets.”
Anohu-Amazu noted that since her assumption of office as acting director-general in December 2012, she had successfully completed the process of a major review of the Pension Reform Act 2004, which culminated in an Executive Bill, the Pension Reform Bill 2013, currently at the final stages of consideration by the National Assembly.
Also at the forum, Oluwatoyin Sanni, group CEO, UBA Capital, urged institutional investors to remain conscious of their rights and responsibilities in effecting the much-needed change in governance standards in the Nigerian financial markets.
According to Sanni, “despite the goals of optimising returns, the effectiveness and credibility of the entire corporate governance system will, to a large extent, depend on institutional investors who make informed use of their shareholder rights and effectively exercise their ownership functions in companies in which they invest.
“Let us demonstrate good corporate citizenship through best global corporate governance practices, ethical conduct, and environmental awareness.”
Misbahu Umar Yola, chairman, Pension Fund Operators (PENOP), who was the guest speaker, urged key institutional investors such as Pension Funds, Asset Managers, Investment Banks, Cash Rich Corporates, Insurance Companies, and Endowment funds to take up some responsibility and accountability in pursuit of corporate governance.
As globalisation pushes the boundaries of businesses across different geographic regions and markets, “there is an increased demand for the boards of companies to be more transparent, accountable and responsible to various stakeholders,” he noted.
