Pension Insight: How pension funds boost infrastructure financing in Nigeria

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Pension Insight: How pension funds boost infrastructure financing in Nigeria
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Under the contributory pension scheme , pension funds have emerged as a formidable force in addressing the infrastructure financing gap in Nigeria, providing essential support for the development of vital projects throughout the country. As pension funds increasingly establish themselves as a viable alternative source of infrastructure funding in Nigeria, they play a pivotal role in stimulating economic growth and addressing the nation’s urgent infrastructure requirements.

Also, N136.03 billion has been invested in the infrastructure funds, demonstrating a keen dedication to supporting vital infrastructure initiatives. N154.76 billion has been strategically allocated to sukuk bonds, a critical financial instrument for infrastructure development. N98.55 billion has been invested in green bonds, underlining the commitment to environmentally sustainable projects.

The revised regulation on investment of pension assets has opened new avenues for pension funds to channel their investments, establishing them as essential participants in the country’s infrastructure development landscape. One of the most noteworthy developments is the allowance for pension funds to invest in government-issued infrastructure bonds and Sukuk bonds. This progressive step has paved the way for financing infrastructure projects through debt instruments, offering stable returns for pension funds while bolstering critical national projects.The primary objectives of pension fund investments in infrastructure are the safety and security of pension funds.

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