By Ebere Nwoji
The Chairman, Pension Fund Operators Association of Nigeria (PenOp) Mr. Mishahu Yola has said that pension fund under the Contributory Pension Scheme (CPS), being managed by the association is very secure.
Yola disclosed at a media briefing in Lagos that contrary to recent reports that part of pension fund managed by the fund administrators has been lost in some investment portfolios, the fund is intact and fund operators and custodians are careful in their choice of investment areas and have been operating according to legal directive on the funds' investment.
"For anyone to talk about loss is mischievous. We have an environment and market that is not deep. You can see what is happening in the stock exchange. The market is not deep, if we are conservative,it is because the market dictates that we should be conservative. Given the shallowness of the market, you can agree that safety comes first.
" Assets are well protected, in 2008 during the crisis, pension fund in Nigeria lost little about three percent it is still a positive return,there has not been negative returns. Even what was written was not negative it only said you have not beaten inflation. But we have our own statistics to show that what they reported was not correct because on their own statistics that is not a good one, when you have 21 PFAs and some one is reporting on the status of only four that is not a good sample So we can say it any where that pension fund has been well protected", he explained".
According to Yola, after safety, the next thing is liquidity because people get paid with money.
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