From left: Head, Investment Supervision Department, National Pension Commission (PenCom), Ehimeme Ohioma; Commissioner Inspectorate Prof. Mohammed Abubakar and Head, Benefits and Insurance, Olulana Loyinmi at the event.
Leave a comment and share
Chuks Udo Okonta
The quest to attract pension funds to develop the nation’s power sector may be stalled by lack of data on power users and illegal connections, Inspen can report.
Recently, the government and other interested parties have being calling for investment of parts of the N5.9 trillion pension fund in infrastructure especially power which is needed to transform the economy that is deeply in recession due to several factors prominent amongst which is inadequate power supply.
According to the Head, Investment Supervision Department, National Pension Commission (PenCom), Ehimeme Ohioma, who spoke at the ongoing Workshop for Finance, Insurance, Labour Correspondents and Business Editors in Calabar, Cross River State, the ability of power sector operators to develop correct database of power users and the menace of illegal connections pose great challenge to investing pension funds in power.
He posited that presently, there are many people using power without paying, adding that such a situation would make the recovery of any fund in the sector difficult.
He noted that safeguarding pension fund remains a priority to PenCom and pension operators, stressing that pension funds would not be invested in businesses where the funds cannot be easily recovered.
He maintained that pension operators are willing to invest in infrastructure, but the template for investment must be transparent and understood by the investors.
Ehimeme said the road sector seems a veritable sector for investment as the recovery channels are clear. He maintained that funds invested in roads can be easily recovered by tolling the roads.
