The Director General of
Pension administrators, including
This compares with 65 per cent invested in federal and state government bonds and 13 per cent in equities.
New rules are being considered to encourage more investments in corporate bonds, thereby making long-term capital available to fund infrastructure projects, Anohu-Amazu said in
"We have a huge amount which can go into the development of infrastructure, but what we have now is an under-utilisation."
The country of about 170 million people loses at least two per cent of potential gross domestic product growth annually due the shortfall, mainly in power and transportation, according to the minister. Its economy is estimated to expand 6.75 percent this year.
A major slice of pension assets are now in government bonds, the "safest place," according to Anohu-Amazu.
With an average growth rate of 30 per cent over the last four years, pension funds are seeking new investment options in equities and other outlets that are safe and offer higher returns.
As an additional investment outlet, infrastructure funds could take as much as 15 per cent of pension assets,
"Whether it is power, real estate, roads, railway, all sorts of infrastructure, we are interested in the format in which the pension funds go into these projects," Anohu-Amazu added.
"Our overriding objective is to ensure that the retired workers receive their payments when due."
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