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Pension Sub-sector Records N770bn Profit in 10 years

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the Director General, National Pension Commission (PenCom), Mrs

The pension industry has recorded N770 billion profit in the past ten years, the Director General, National Pension Commission (PenCom), Mrs. Chinelo Anohu-Amazu has said.

Anohu-Amazu, who disclosed this at the 17th annual lecture of the Catholic Brothers United (CBU ) of St. Agnes Catholic Church Maryland, Lagos, said the pension industry, raked in the huge profit between January 2006 and June 2016.

She said total contributions to Retirement Savings Account (RSA) for both public and private sectors within the period was N3.06trillion made up of N1.78trillion from public sector, which represents 57.52 percent of the total contributions and N1.30trillion from the private sector, representing 42.48 percent of the total contributions.

“Given that total assets of the RSA fund was N3.83trillionas at the period under review, it showed that a profit of over 770billion was made between January 2006 and June 2016.The public sector contributions include all contributions from federal and state governments as well as the self -funding agencies”, the PenCom boss explained.

She observed that the Nigerian pension fund assets had seen a dramatic growth over the decade from about N2trillion deficit in June, 2004 to N5.74 trillion as at the second quarter 2014.

According to her, this pool of funds is being invested on behalf of the contributors based on the provision of the PRA 2014 on stipulated allowable instruments for investment of pension funds and assets.

She said the commission, had in line with its regulatory responsibilities, issued regulation on investment of pension asset to guide the operators on how pension contributions should be invested.

The PenCom DG stated that the investment policy of the industry is based on the principle of safety, fair returns and liquidity to ensure that retirees receive their benefits as and when due, while achieving measurable impact on the economy.

According to Anohu-Amazu, Nigeria, like other emerging economies, had invested over 69 percent of the pension funds in government securities while investment in equities and money market securities were moderate at 11.54 percent and 8.66 percent respectively as at the second quarter of 2016.

Speaking on infrastructural investment, Anohu-Amazu, said there was only 0.03 per cent investment in infrastructure, a situation, which she said has left a huge untapped financing prospect.

“In addition, there is no investment in infrastructure bonds despite the allowance of 15 percent of the total pension fund asset in this instrument. This was largely due to non availability of this instrument in the market.” she stated.

She said the corporate and the pension industry strategies would help to increase investment in infrastructure and other alternatives assets from four percent in 2014 to 40 percent by the end of 2019.

Furthermore, she said plans have been made to drive efficiency by improving service delivery and the use of technology as well as establishment of share services across the pension industry.

She disclosed that Nigerian pension fund is targeting at inclusive expansive coverage, with the objective of ensuring that a minimum of 18per cent of the population, are covered and increase the asset size of the sector increased by at least 10 percent of the Nigerian GDP by 2019.

The commission, she added, will drive these objectives through excellence in service delivery access to the pension industry and increased investments in infrastructure projects to achieve measurable impact on the Nigerian economy.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Global Deal Activity Down by 4.5% in October 2020

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business solution

A total of 6,304 deals were announced globally during October 2020, which is a decrease of 4.5% over the 6,598 deals announced during September, according to GlobalData, a leading data, and analytics company. An analysis of GlobalData’s Financial Deals Database revealed that the deal volume during October remained below the monthly average of Q3 2020.

Aurojyoti Bose, the Lead Analyst at GlobalData, comments: “After demonstrating growth for four consecutive months, the deal volume shrank in October. The decline in deal activity could be attributed to inconsistencies across different regions. The APAC region remained a weak spot, while deal activity remained mostly flat in North America, and the Middle East and Africa (MEA) region witnessed growth in deal activity.”

North America attracted the highest number of investments, followed by APAC, Europe, the MEA, and South, and Central America.

The uncertain global economic landscape lowered the deal volume in October for major markets such as the US, Germany, Australia, France, India, and China compared to the previous month. On the contrary, the UK, Japan, South Korea, and Canada saw growth of 15.6%,14.9%, 3.8%, and 2.2%, respectively, in October as compared to September’s deal volume.

Bose continued: “Most of the deal types witnessed a decline in volume during October compared to the previous month. Private equity, equity offerings, venture financing, debt offerings, and partnership deals volume decreased by a respective 2.4%, 9.1%, 9.8%, 14.6%, and 24.6% – while the deal volume for mergers and acquisitions (M&A) increased by 7.2%.”

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Investment

Japaul to Invest in Chinese Firm H&H to Deepen Mining and Exploration Business

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Japaul Gold & Ventures Plc (Japaul), formerly known as Japaul Oil and Maritime Services Plc, announced it has gotten approval in principle from H&H Mines Limited to invest in or acquire shares in the company once it concluded its fundraising exercise.

According to a statement released through the Nigerian Stock Exchange (NSE), H&H Mines Limited has several licenses, which include two major Mining Leases for 25 years renewable.

The statement noted that extensive exploration has been done on the Mining properties and the last lap of the exploration works is core drilling. This, it said will allow Japaul knows the measured Minerals Reserve contained in the Mine, which it claimed contain Gold, Silver, Lead, Zinc, etc.

Japaul further explained that the need to get the drilling done was what led H&H Mining to engage the services of Xiang Hui International Mining Company Nigeria.

“Since Japaul will eventually be part of H&H Mines Limited, it was necessary that Japaul is carried along on the kind of Contract of Drilling to be entered into, and that was why the signing of the Drilling Contract between the Chinese Company and H&H Mines Limited was concluded at Japaul’s Head Office,” the company stated.

The drilling is expected to be concluded in the next 12 months and within this time, Japaul is expected to have concluded the Fund Raising and formalise her involvement in the Mining.

The company added that Canadian reports revealed that there are huge gold, silver, lead, etc deposits, but it is drilling that will show the actual reserve.

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Investment

Africa Investment Forum (AIF) Rescheduled to Hold in 2021 – AfDB

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AfDB

Investment Forum to Now Hold in 2021 in a Bid to Curb Possible Second Wave of COVID-19  

The Africa Investment Forum scheduled to hold in November 2020 in Johannesburg, South Africa has been rescheduled to hold in2021 as a result of the ongoing global health pandemic.

This announcement was made in a statement by AfDB on Wednesday. The African Development Bank (AfDB) and the Africa Investment Forum founding partners agreed to the postponement of the annual three-day investment market place.

Considering the negative effect of Covid-19 on the global economy, agreement by the two bodies was made after a careful assessment of the impact of COVID-19 on global travels, investments, observing the social distancing rules and curbing the likely possible risk of a second wave.

In the statement, the bank stated that through the forum innovative digital platforms, it would track investments, source for new deals, progress on financial closure of transactions and other existing deals.

“At the 2019 Africa Investment Forum, 57 deals valued at $67.7bn were tabled for discussions. Fifty-two deals worth $40.1bn secured investment interest.

“In July this year, the AIF Founding partners pledged to strengthen strategic partnership engagement and commitments for Africa Investment Forum Market Days 2021, to help ‘reboot investments in Africa.’ They underscored the need to boost local manufacturing while leveraging the continent’s vast resources to unlock investment.”

In the statement, Africa Investment Forum objectives are achieved through the forum’s four pillars; Closing, Connecting, Engaging and Investment Tracking.

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