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Chuks Udo Okonta
The Director-General, National Pension Commission (PenCom), Mrs Chinelo Anohu-Amazu, has identified inadequate products as a reason for the deployment of over N3.49 trillion amounting to 66.41 per cent, of the pension funds to Federal Government securities.
Anohu-Amazu, who disclosed this in Abuja, called on pension operators to work towards developing alternatives and new products.
“The PFAs are constrained; they are unable to develop the products they invest which is why we have a preponderance of the pension funds in federal government securities, there are no alternatives “Part of the thing I want to throw out to operators in this room is to work towards developing alternatives and new products,” she said.
The Director-General said the regulators were doing their bit at ensuring that the PFAs were highly regulated.
She said several regulations had been done and what was left was to ensure the official issuance of those regulatory actions in the sector.
“Our eyes are on two things; protecting the funds and making sure that its primary mandate as required by law, which is paying retirement benefit as and when due, is not tampered with.
“That mandate also extends to making sure that the value is not eroded, and it will be our joy that various institutions are deepened by the pension fund and the capital market is just one of those institution,” she added.
She said the issue of channeling the pension fund to the capital market was welcomed as long as the contributor was assured of the channel the fund was taken to and its safety.