The National Pensions Commission, PenCom, has revealed that pension assets as at July 2016, stood at N5.8 trillion, adding that by 2019, at least 40 percent of PenCom assets would be invested in critical infrastructures across the country.

Director-General of PenCom, Chinelo Anohu-Amazu, made this known during a programme organised by the Finance Correspondents Association of Nigeria, FICAN, in Abuja on Friday.

Represented by Ehimeme Ohioma, PenCom’s head of investment supervision, the DG said that the investment of pension fund into infrastructure development was a reasonable venture.

She added that infrastructure projects were long term investments, which fits into the long term duration of pension liabilities.

Anohu-Amazu pointed out that globally, productive investments in infrastructures were made possible by long term private fund and savings, saying that most successful countries had utilized pension assets in order to develop infrastructures.

She said: “Nigeria has huge “infrastructure deficit in all sectors, largely due to population growth, demographic change and urbanisation which have driven increased demand for infrastructures in the country.”

The DG however noted that regulatory requirements for pensions fund investment in infrastructures must first be met.

Such requirements include: registration of the infrastructure fund with Nigeria Stock Exchange, NSE, and managed by fund manager registered with the SEC; well defined and communicated investment risk strategies as well as life cycle and exit clause.