stakeholders emphasized the critical role of pension funds in driving economic
At the 2024 Association of Investment Advisers and Portfolio Managers’ conference in Lagos, stakeholders emphasized the critical role of pension funds in driving economic growth and the government’s developmental agenda. The event, with the theme ‘Driving Economic Growth and Developmental Agenda with Pension Fund – The Roles of Investment Professionals,’ served as a platform for industry experts to discuss leveraging pension funds for national development.
Furthermore,
Association of Investment Advisers and Portfolio Managers recognized the achievements of 29 new Associate and Fellow members, highlighting their commitment to professional excellence in project management.
President and chairman of association, Prince Abimbola Olashore, underscored the significance of focusing on infrastructure investment to maximize the potential for high returns on pension fund investments. By channeling resources into infrastructure projects, institutional investors, particularly pension funds, can unlock opportunities for sustainable economic growth and development.
The conference aimed to catalyze collaboration between investment professionals and policymakers to optimize pension funds for driving impactful investments in key sectors, ultimately advancing the nation’s development agenda.
He said that institutional investors, in particular pension fund will play a major role in the financing of long-term productive activities that support sustainable growth in 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, Mr. Oluwole Oshin noted that “pension funds are the bedrock of retirement security for millions of people across the globe. They are not just pool 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 serves as catalysts to driving 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), Mr Bola Ajomale reassured of the SEC’s continuous support to the Association and the growth of the capital market community.
Leave a Reply