The
Minister made this position known at the Nigerian Pension Industry Strategy
Implementation Road Map Retreat organized by the National Pension Commission
(PenCom) retreat held in Abuja recently adding that a judicious use of the fund
will add remarkable value to the benefit of the economy and the citizens at
large.
Fashola
while asserting his confidence in the present administration stated
unequivocally that he was confident that would recover its lost glory in Africa
and the world as a whole. Giving his analysis, the minister categorically noted
Nigeria’s leadership position in Africa is achievable. In his speech, he said,
“I see a future for Africa led by Nigeria, using the resources of the People to
build a future that include the people”
On
his raison d'être over conversion of the Pensions Fund, he explained that
massive investments in the economy with the fund particularly in construction
of roads, building of hospitals, more airports, modern educational facilities, railways,
inland water ways will no doubt counter the high rate of unemployment in the
country and certainly improve the standard of living of Nigerians adding that
it is unprofessional to allow such bulk sum of money to lie idle.
“In
Nigeria alone, it has $289 million in Dangote Cement , $98million approved but
yet to be drawn for Notore Fertilizer, $230million in MTN Nigeria, $270million
in Erin Energy (formerly CAMAC) and $150million in Mainstream Energy Solutions
(in the power sector of Nigeria). By contrast, the question to ask is what is
the home based pension fund doing? If as I have shown, the visiting Pension Fund
from South Africa has a total of $897million in our economy.
“The
answer is obvious, that is why we are here, that is why my host in their
invitation spoke of suitable investible vehicles with low risk profiles and
sufficient comfort as the reason that continues to hamper the drive to make
visible economic impact. This is the time to show that our nation and our
national economy is bigger than the challenges posed by dwindling oil prices.
This is the time to diversify and change the face of our economy. But the risks
that stand in the way of investing the fund are caused by us and they must be
changed by us. Perhaps, the appropriate starting point will be to acknowledge
that pension reforms are just beginning to gain a foothold across most of
Africa in jurisdictions as Nigeria, Ghana, Botswana, Kenya and Uganda, to
mention a few. Perhaps the biggest and most advanced of the pension funds,
especially in sub-Saharan Africa is the South African Pension Fund. But while
the sizes of these funds are happily growing, and the number of contributors
increasing, the impact in the quality of life on the continent is not yet
anywhere near minimum globally acceptable standards,” Fashola said.
Giving
a breakdown of social amenities and infrastructure that could be financed by
the fund, he said, ‘’Those investible vehicles exist. They are in roads that
can be tolled, like housing, the 4th Mainland Bridge, the Coastal Road linking
several coastal states from Lagos to Bayelsa; the new seaport in Lekki and
Badagry, the refinery by Dangote, Ajaokuta Steel, a petrochemical plant in the
Niger Delta; the broken textile mills in the North and South of Nigeria that
require new equipments and disciplined fiscal, technical and organizational
management; prison in each of the six geopolitical zones of Nigeria that can
help strengthen our justice system and decongest the colonial prisons we have
kept as relics of our own sense of justice; they are in hostels for students in
Nigerian universities, embedded power plants in the universities, most of which
have teaching hospitals and provide an opportunity to power education and
healthcare and the list is endless." ‘
He
added that the Pension fund has shown that with determination, success is
feasible on account of the amount which has accrued in the fund.
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