PenOp wants guaranty for funds before investment in infrastructure

- PenOp's Chairman, Misbahu Yola

Chuks Udo Okonta

The crave in some quarters for the investment of parts of the over N4.5 trillion pension funds in infrastructural development seem to have raised fears among members of Pension Fund Operators Association of Nigeria (PenOp), who are worried over the security of the workers’ contributions entrusted to them.

They expressed worry over how the funds can be recouped, especially with the state of inconsistent government policies which have been the bane of business growth and development in the country.

Though, they expressed concern over the poor state of infrastructures, they said pension funds should not be considered an idle money which can be thrown at troubles without spelt out mechanism to recover the investments.

 Managing Director Leadway Pensure Limited Ronke Adedeji, told Journalists at a retreat organised by the Association in Lagos, that though such investments thrive in other climes, the proposed plan should be done with clear guidelines specifying how the funds would be recovered and water-tight commitment that policies would not affect it.

She noted that as an operator, holding workers’ money meant for their retirement, she would not be able to tell them when they come for their benefits that their money has been tied down in infrastructures; hence, all operators have the mandate to ensure that workers get their entitlements without hassle at retirement.

PenOp Executives and Members at the association's 2nd Annual General Meeting held October 31 in Lagos.

Head, Risk and Compliance, Stanbic IBTC Pension Managers Idu Okwuosa, said the operators are not opposed to the demand, but their concern is that there should be proof and guaranty for the funds.

She noted that one of the ways such initiative can thrive is for government to hand-off totally and allow competent private sector operators manage such infrastructure, adding that events have shown that even Public Private Partnerships (PPP) often fail due to government involvements.