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By Rosemary Onuoha
Despite the astronomical growth recorded in the pension fund, only 11 percent of workforce is enrolled in the Contributory Pension Scheme, CPS, and the micro pension schemes and this number needs to improve, the Pension Fund Operators Association of Nigeria, PenOp, has said.
Head of Media, Communications and Branding Committee of PenOp, who is also the Chief Executive of Fidelity Pensions Limited, Mrs. Amaka Andy-Azike, disclosed this during a webinar organized for pension correspondents.
Lamenting the development, Andy-Azike said: “We plan to have a pension awareness week, like a pension fair where operators attend to individuals on the spot with media partners available for coverage. We also intend to participate in World Savings Day to drive financial inclusion as only 11 percent of the active workforce is enrolled in contributory and micro pension schemes and this number needs to improve.”
Nigeria: Only 11% of Workforce Is Enrolled in Pension Scheme - PenOp allafrica.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from allafrica.com Daily Mail and Mail on Sunday newspapers.
Boosting local industries could help reduce demand for dollars
Faced with bond yields coming off record lows and a hard-to-trade equity market, Nigeria’s biggest pension-fund manager wants the flexibility to invest directly in large local projects.
Financing the development of domestic industries with naira will also ease pressure on the nation’s currency by reducing demand for dollars, said Stanbic IBTC Pension Managers Ltd. Chief Executive Officer Eric Fajemisin. Once up and running, local plants can help cut imports, further benefiting the naira and easing pressure on inflation that’s been decimating returns, he said.
Domestic retirement funds overseeing the equivalent of $30 billion are looking for new places to invest. That’s after yields on government debt that account for the bulk of their investments plunged because too much cash flooded into the system. The lack of enough high quality stocks, few options by way of derivative products and small corporate debt issua
Nigeria: Only 11% of Workforce Is Enrolled in the Pension Scheme - PenOp allafrica.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from allafrica.com Daily Mail and Mail on Sunday newspapers.