IoD charges PenCom on investment of N700bn pension funds

He, however, pointed out that he had discovered that a lot of the money from the pension market is not being used for infrastructural activities, but is being invested in the stock market.

PenCom’s Director General, Muhammad Ahmad, had earlier disclosed that N700 billion, including legacy funds, have already accrued to the commission in the last three years.

Ijewere said a lot of pension fund goes to the stock market and it is one of the factors driving prices at the capital market in some cases to artificial heights and therefore not achieving the goals it is supposed to achieve.

He stated further that the aim of bringing funds together to empower the needy sectors of the economy has not been achieved because government was not paying enough attention to the investment of such funds.

Speaking on the rate of contribution under the new contributory pension scheme, he said the 15 per cent being contributed by both the employer and the employee is reasonable, noting that the money only needs to be invested wisely to generate returns for the contributors.

"If the 15 per cent contribution to the scheme is properly managed by good fund managers who are fully aware of what that money needs to do, in say, a period 25 years before the employee retires, it would have grown to a lot of money capable of sustaining the contributors to enjoy pleasurable retirement," he noted.

Ijewere also called on PenCom to collaborate more with the operators in the private sector to ensure the success of the contributory scheme now operational in the country.

He said the regulatory authority should talk more to the private sector, noting "The private sector is by far better organized and better focused. Government needs to first of all appreciate that reality, work more closely with the private sector, and recognize them as stakeholders in Nigeria ."