Pension Fund Operators Eye Offshore Investments

In a recent virtual session titled “Ask Me Anything,” organised by the Pension Fund Operators Association of Nigeria (PenOp), CEO Oguche Agudah unveiled plans for offshore investments in pension funds to bolster returns.

Agudah stated, “Currently, all pension funds are invested onshore. However, ongoing engagements with regulatory bodies, including the National Pension Commission and the Central Bank of Nigeria (CBN), aim to lay the groundwork for offshore investments of pension funds soon.”

Explaining the investment strategy, Agudah emphasised that Retirement Savings Account (RSA) holders benefit from diverse investments, including bonds, Treasury bills, and capital markets. These investments align with guidelines set by regulators, particularly National Pension Commission (PenCom).

Responding to queries about accessing pensions for those who have left the country, Agudah highlighted the “cross-border arrangement policy,” enabling RSA holders to access their funds globally while complying with scheme regulations.

On the topic of programmed withdrawal for RSA holders, Agudah clarified that individuals resigning or retiring before the age of 50 can access 25 percent of their RSA savings four months after confirmation by their Pension Fund Administrators (PFAs). The remainder is disbursed when the holder reaches 50 years of age.

Addressing misconceptions, Agudah dispelled the notion that “Pension is a scam,” attributing it to a lack of understanding about the Contributory Pension Scheme. He emphasised the sector’s stringent regulation, assuring contributors that their funds are secure within one of Nigeria’s most strictly regulated industries.