The National Pension Commission has said it is ready to strengthen its relationship with the Nigerian Stock Exchange to ensure the development of the capital market.
The Director-General, PenCom, Chinelo Amazu, said this in Lagos on Thursday when she led members of the commission on a visit to the NSE for the closing gong ceremony.
Amazu said the commission would take the needed steps in partnership with the Exchange to ensure that institutional investors had enough confidence in the stock market so as to continue investing for the long term.
The PenCom DG, who expressed satisfaction with the reforms in the stock market in recent years, said they were necessary for the Exchange to attract more investment.
She said, “The reform that has been ongoing in the NSE is the kind of thing that PenCom is looking for because we are institutional investors and because of the nature of funds we hold… and the primary mandate of PenCom is to establish and ensure that liabilities and pension retirement benefits are paid as and at when due, this is the crux of all investments we do.
“Now, the relationship we are establishing with the NSE is such that will enable us meet our initial mandate, while also playing an active part in the local development of the NSE because investment in equities for institutional investors is long term in nature.
“We are not portfolio investors; we are in for the long term and I am happy that the management of the NSE is creating that platform to enable us to fulfil that mandate.”
She told journalists after performing the closing gong ceremony that state governments that had yet to be part of the pension initiative had promised to participate.
She said the state governments also promised to ensure that more workers at the state level would be enrolled in the pension scheme.
She said, “The state is slightly different, you have to pass their own law and then make it to conform to the Pension Reform Act of 2014. And it is not just the state, even the private sector and companies everywhere. Part of our job is to ensure and follow up to see that RSA retirement savings account is fully funded. We have seen an upsurge in that and the future looks bright.”
Meanwhile, stockbrokers called on the commission to ensure that pension fund managers increase their stake in the stock market to 25 per cent.
Managing Director, Trust Yield Securities Limited, Mr. Rasheed Yusuf, who spoke on behalf of the stockbrokers, explained that total pension contribution now at N5tn, the need to increase pension fund investment in the capital market could not be overemphasised.
He added that the visit of the PenCom leadership just two days after Nigeria hosted the World Pension Summit was a welcome development, as it was aimed at boosting the growth of the economy.
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Source : Punch