Investment Experts Advocate Pension Funds Use For Economic Growth

Stakeholders have called for the use of pension funds to drive economic growth and development agenda of the government.

This was stated at the 2024 Investment Advisers and Portfolio Managers’ conference with the theme, ‘Driving Economic Growth and Developmental Agenda with Pension Fund – The Roles of Investment Professionals’ held in Lagos.

Also, the International Association of Project Managers (IAPM) inducted 29 qualified Associate members into the Profession.

Speaking at the event, president/chairman of IAPM, Prince Abimbola Olashore said that the theme for this year’s conference is carefully selected to draw the attention of institutional investors especially pension funds to the huge funding gap in the infrastructure sector and the potential for high returns on investment for pension funds if well harnessed and managed.

He said that institutional investors, in particular pension funds, will play a major role in the financing of long-term productive activities that support sustainable growth in the infrastructure sector.

Olashore however, noted that before pension funds could commit large capital to a project such as in infrastructure, there must be transparency, long term and efficient regulations governing the sector and also such investment will be made possible only if investors are able to earn adequate risk-adjusted returns and if appropriate market structures and risk-free financial securities are in place to attract pension funds.

Group managing director, Custodian Investment Plc,  Oluwole Oshin noted that “pension funds are the bedrock of retirement security for millions of people across the globe. They are not just pools of money set aside for the future. There are powerful tools that drive economic growth, stability and innovation.”

He added that investment professionals play a crucial role in ensuring that funds are managed effectively, balancing risks or returns to meet the needs of retirees whilst contributing to economic development.

He pointed out that Nigeria’s pension fund was valued as at 2023 at about N18.36 trillion, which is about $38 billion trillion, saying that these funds are amongst the largest institutional investors that hold significant stakes in major companies and assets across various sectors.

He noted that pension funds are increasingly investing in infrastructure projects, such as roads, bridges, or renewable energy installations as these investments not only provide stable long-term returns, but also create jobs, improve public services, and foster economic growth.

According to Oshin, these investments not only play a crucial role in addressing deficits, but also serve as catalysts to drive economic growth and development.

“Driving economic growth and development is a multifaceted task that requires collaboration, expertise, and innovation as investment professionals, your role is crucial in this job.”

Representing the director-general of Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, the executive commissioner (Operations), Bola Ajomale, reassured of SEC continuous support to the Association and to the growth of the capital market community.