Former Minister Of Finance, Aganga Canvasses Investments Of Pension Fund Assets In Offshore Instruments

A former Minister of Finance and Minister for industry, trade and investment, Mr Olusegun Aganga, has canvassed for Nigerian pension funds be able to invest a portion of their assets offshore and in index/inflation linked instruments.

He said this was very important, as the devaluation of the local currency and rising inflation could lead to an erosion of earnings for the pension funds and subsequently, old age poverty for pensioners and retirees.

He said the industry needs to get this going as soon as possible so that the industry can protect the gains of the pension reforms and truly provide financial security for retirees.

Aganga was speaking at a training organized for board members and directors of pension fund operators in Nigeria which was organized by PenOp and FITC in conjunction with PENCOM.

Aganga also mentioned that the directors of pension funds need to work together with the State Governments, the National Executive Council and the Federal Government to ensure that more states get onboard the contributory pension scheme.

This, he said would help to ensure that those states already on the scheme remit both employer and employee contributions to the pension fund administrators as and when due.

He said it was regrettable that a number of states were deducting pension contributions from their employees, but were not remitting it, which he said does not augur well for the future of Nigerian workers and it should be discouraged.

Also, he said that as a former Minister of Finance, he realizes that it is not sustainable to move any class of workers outside of the contributory pension scheme (CPS) and move them to the unsustainable defined benefit scheme.

Aganga, who is also the chairman of Leadway Pension PFA, urged directors to realize their critical positions in shaping policies, guiding directions and setting “the tone” at the top of their organizations.

Aganga also commended PenCom for its commitment to the principles of corporate governance and the growth of the industry in general.

Oguche Agudah, the Chief Executive Officer of PenOp, said these sessions that PenOp organizes for directors is very important because it is an opportunity for directors of pension fund operators to come together and work towards the growth of the industry.