Brokers urge Pencom to increase stake in capital market

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BROKERS ON THE TRADING FLOOR

Stock brokers on the floor of Nigerian Stock Exchange (NSE) has called on the National Pension Commission (PENCOM) to increase their stake in the stock market to 25 percent.

The Doyen of the day Mr Rasheed Yusuf made the appeal when the Director General of PENCOM Mrs Chinelo Anohu Amazu and some of her management team paid a courtesy visit to the exchange and during closing gong ceremony.

Alhaji Yusuf said the current policy that stipulates Pension Funds Administration (PFAs) to contribute 10 percent of their deposit is still low when compared with what the scheme has raised in the past ten years.

Stressing that with the current contributory pension scheme which now stand at N5 trillion, the need to increase PFA investments in the capital market cannot be overemphasized.

Adding that the coming of PENCOM team at a time Nigeria just hosted the World Pension Summit two days ago is a welcome development, as it geared towards the growth of the economy.

On her part Mrs Chinelo Anohu Amazu said her coming is to strengthen the already build relationship with the stock exchange. Pointing out that the huge funds will help Nigeria bridge its infrastructure deficit and develop the economy.

She noted that a key feature of the contributory pension scheme is the institutionalization of risk based regulation as a means of engendering the long term sustainability of the pension industry.

It would be recalled that PENCOM hosted operators in the industry across Africa on 5 and 6 of October 2015 in Abuja.

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