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PFAs Invest N11.36bn in Infrastructure, Eye Airport Projects

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  • PFAs Invest N11.36bn in Infrastructure, Eye Airport Projects

The Pension Funds Administrators have continued to raise their investments in infrastructure even as they move to extend their investment tentacles to the nation’s airports as assets under their management increase, NIKE POPOOLA reports.

The Pension Funds Administrators have raised their investments in infrastructure to N11.36bn from the pension money in their custody, according to the latest report on the issue from the National Bureau of Statistics.

It said the figure was for the end of the second quarter of the 2018 financial period.

The NBS stated in its ‘Pension Asset and Membership Data’ that the total funds under the Contributory Pension Scheme stood at N8.23tn as of the end of June.

The Federal Government, which is the biggest borrower of the funds, has 70.75 per cent or N5.8tn of the total assets in its custody.

The NBS’ report showed that the Federal Government had invested N4.04tn, N1.7tn, N8.35bn, N58.36bn and N7.7bn in the Federal Government of Nigeria bonds, treasury bills, agency bonds, Sukuk bonds and Green bonds.

It added that a total of N151.95bn of the funds was invested in state government securities.

According to the NBS, the pension asset and Retirement Savings Account membership data for Q2 2018 showed that 8,136,202 workers were registered under the pension scheme, compared to 7,975,976 registered workers in Q1 2018; while the pension fund asset under management as of Q2 2018 stood at N8.232tn as against N7.943tn in Q1 2018.

FGN bonds had the highest weight percentage of 49.08 per cent of the total pension fund assets and closely followed by treasury bills with 20.76 per cent; and domestic ordinary shares with 8.62 per cent, while green bonds had the least with 0.09 per cent weight.

The data revealed that participants within the age distribution of 30-39 years had the highest percentage composition, closely followed by participants within the age bracket of 40-49 years and 50-59 years, while participants above 65 years had the least percentage composition.

Other figures obtained from the National Pension Commission on investment in infrastructure revealed that in May 2015, the operators invested N568m in infrastructure and increased it to N1.35bn in December 2015.

The PFAs invested N2.06bn in infrastructure bond in December 2016, and had gradually increased the pension funds invested in the portfolio.

For instance, PenCom’s data showed that the PFAs invested N6.86bn in the nation’s infrastructure as of December 2017.

Operators of the CPS are looking at how to extend the investment of the increasing pension funds to airport projects in the country and other large investment areas.

According to the Managing Director, Sigma Pension, Mr Dave Uduanu, the operators are working with development finance institutions on how to create support for investible projects.

“The pension operators are looking at forming a consortium in such areas for investment because those are large-scale investments, which are beyond the capacity of any one pension fund,” he said.

Uduanu, who noted that more of the funds should be invested in the real sector of the economy, stated that there should be supply of instruments of listed companies and quality infrastructural instruments.

The Director-General, PenCom, Aisha Dahir-Umar, said the CPS had facilitated a pool of pension funds which had consistently accumulated since its inception.

She said there was enormous potential for the growth of Nigerian pension funds to account for a significant proportion of the Gross Domestic Product.

“The commission’s ongoing strategy implementation aims to attain an increase in the ratio of pension funds to GDP to at least 10 per cent by 2019,” she said.

According to her, the specific measures planned to achieve this include, first, the expansion of coverage of the CPS to the underserved economic sectors through micro-pension and renewed enforcement of compliance.

“Our objective in this direction is to attain at least 20 million contributors by the year 2019,” she said.

The acting director-general said it sought to grow the assets through more investments in variable income instruments that could generate higher returns.

In order to achieve this, she said the commission commenced the implementation of the multi-fund structure in July, 2018, which segregated the funds based on the risk profile of contributors and gave them an opportunity to choose subject-to-age parameters.

Dahir-Umar stated that the increase in contribution rates in the Pension Reform Act 2014 from 15 per cent to 18 per cent — 10 per cent by employer and eight per cent by the employee — would also increase the size of pension funds when fully implemented for treasury funded Federal Government’s Ministries, Departments and Agencies.

“The commission has also intensified efforts at ensuring the payment of all outstanding pension liabilities, including accrued pension rights and pension increases that are yet to be implemented,” she said.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Samsung Launches Its Lastest Mobile Device, ‘Galaxy A04s’ in Nigeria

Samsung has unveiled its latest mobile device, the ‘Galaxy A04s’ in the Nigerian market

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Multinational electronics manufacturing company Samsung has unveiled its latest mobile device, the ‘Galaxy A04s’ in the Nigerian market.

The new device comes in various colors such as Black, Green, White, and Copper, and is packed with a 3GB, 4B RAM with 64GB and 128GB internal storage, Investors King understands.

The A04s also supports Dual SIM and is built with a glass front, plastic back, and plastic frame. It features a triple camera: 50 MP (wide) + 2 MP (macro) + 2 MP (depth) while on the front there is an 5 MP (wide) camera.

Samsung’s launch of this device reinforces the company’s commitment in providing affordable yet quality devices that address the daily needs of consumers.

Following the launch of its latest device in the Nigerian market, Managing Director, Samsung Nigeria Charlie Lee said, “Today is quite remarkable as we introduce Galaxy A04s, ‘The Eagle’. People want a device that is convenient, safe and affordable.

“They want a device that is a one-stop shop to enjoy watching movies, playing games and be productive at the same time.

“Galaxy A04s, another pocket-friendly mobile device from Samsung has been launched in Nigeria to edge out competition, ahead of other emerging markets.

“The Galaxy A04s is an impressive device at excellent value that builds on our growing Galaxy A Series portfolio”.

“With the Galaxy A04s, our customers can experience next-generation performance, demonstrating Samsung’s commitment to providing accessible devices without compromising on quality.”

Following the current economic situation ravaging the country, Joy Tim-Ayoola, HOD MX division added that Samsung through a pay small small scheme called Flex Pay has provided the opportunity for consumers to buy the device and pay in 3-12 months’ installment with as low as N11,000 per month.

She also stated that users of the device can also repair their screens for as low as N12,500 with no limits to frequency or time. Samsung’s launch of its A04s is coming a year after it launched the A03s in 2021.

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SMEs

FSDH Merchant Bank Receives Approval from AfDB for $25 Million Finance Facility to Support SMEs

African Development Bank (AfDB) has approved a $25 million credit facility for FSDH Merchant Bank to support Small and Medium Enterprises (SMEs) in Nigeria.

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African Development Bank (AfDB) has approved a $25 million credit facility for FSDH Merchant Bank to support Small and Medium Enterprises (SMEs) in Nigeria.

FSDH, which provides investment banking and security trading services, received a $15 million trade finance line of credit and another $10 million in loan transaction guarantee to provide loans for SMEs.

Following several limitations faced by SMEs in the country which have stifled their growth, the $25 million facility will enable FSDH to work towards ensuring the growth of SMEs by reducing the trade finance gap in Nigeria and ensuring the availability of funds for small and medium-sized enterprises (SMEs) in the industrial sector.

The Bank will also guarantee up to 100% of non-payment risks arising from letters of credit and similar trade finance instruments issued by FSDH under the guarantee portion. This will allow confirmation of trade transactions originated by FSDH, benefiting local import and export businesses.

Overall, the facility will catalyze more than $200 million of trade finance transactions across multi-sectors, including agriculture, manufacturing, and energy over the next three years.

Speaking on the recently approved funds, the Director General of The African Development Bank (AFDB), Lamin Barrow said: “The availability of trade finance instruments to drive post-pandemic economic recovery efforts cannot be overemphasized.

“Hence, the Bank’s financing will help eligible Nigerian SMEs to take advantage of existing and emerging opportunities in the domestic and regional markets.”

Also commenting is the Bank’s Director for Financial Sector Development, Stefan Nalletamby, he said, “We are excited about finalizing this facility with FSDH as having the Bank as a partner will aid FSDH in scaling up its trade finance offerings in Nigeria to help meet the ever-increasing trade finance gap.

“This partnership is expected to catalyze more than $200 million value of trade finance transactions across multi-sectors such as agriculture, manufacturing, and energy over the next 3.5 years.” 

The African Development Bank (AFDB) anchors its current Nigeria strategy on two pillars which are supporting infrastructure development and promoting social inclusion through agribusiness and skills development.

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Merger and Acquisition

Access Bank Plans Expansion Into Angolan Market

Access Holdings Plc has announced its planned acquisition of  a 51 percent majority equity stake in Angolan Bank, Finibanco.

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Access Holdings Plc has announced its planned acquisition of  a 51 percent majority equity stake in Angolan Bank, Finibanco.

Investors King learnt that Access Bank Plc is expanding its presence to Angola through the acquisition of a 51 percent stake in Finibanco.

The acquisition of Finibanco was disclosed in a filing to the Nigerian Exchange Limited by Access Holdings Plc.

Finibanco is a full-service commercial bank with over 20 branches and around $300 million in total assets in Angola.

According to Access Holding Secretary, Mr Sunday Ekwochi, the Angolan market as the sixth largest economy in Africa and the seventh largest country overall, with a vast and diversified natural resource base and a growing population, represents a strong potential for the bank’s growth aspirations

The Secretary further stated that the transaction is subject to regulatory approvals in Nigeria and Angola. The transaction is expected to be completed during the first half of 2023. This will however be subjected to customary conditions.

Access Bank has been on an acquisition spree since the beginning of 2021. The acquisition of a majority stake in Finibanco makes it Access’s sixth acquisition in the last 18 months.

In June 2022, it acquired a $37 million stake in Kenya Sidian Bank. Other acquisitions include African Banking Corporation of Botswana Limited, African Banking Corporation Zambia Limited, as well as Cavmont Bank.

Access bank is one of the leading banks in Nigeria. As a commercial bank, it operates through a network of more than 700 branches and service outlets, spanning 3 continents, 17 markets and 45 million customers.

The lending bank employs 28,000 people in its operations in Nigeria and has subsidiaries in sub-Saharan Africa and the United Kingdom. It also has a branch in Dubai, UAE and representative offices in China, Lebanon and India.

As at 31 March 2022, Access Bank had total assets of approximately US $28.8 billion.

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