Offshore pension investments to commence soon - PenOp
The Pension Fund Operators Association of Nigeria (PenOp) says Nigeria’s offshore pension fund investments are to commence soon as part of its efforts to boost return on investment.
The Chief Executive Officer of PenoP, Oguche Agudah, said this in a virtual session on Tuesday.
The session was tagged “Ask Me Anything”, organised by the operators to create awareness about the activities and operations of the Contributory Pension Scheme (CPS) in the country.
Agudah said that all pension funds are currently invested onshore.
“However, there are engagements ongoing with the regulators, the National Pension Commission (PenCom), and the Central Bank of Nigeria (CBN) that once all modalities are put in place, we will commence offshore investments of pension funds,” Agudah said.
Responding to a question on where Retirement Savings Account (RSA) holders access their funds after retirement, Agudah said the fund could be accessed even outside Nigeria.
He said, “In RSA, holders get returns of investments credited to their accounts because Pension Fund Administrators (PFAs) every day invest in different sectors like bonds, Treasury bills, or capital markets, among others, in line with the guidelines laid down by the regulators, PenCom.
“Those who left the country can access their pension; RSA holders can access their funds anywhere in the world using the cross-border arrangement policy in line with the regulations of the scheme.”
Agudah said that for programmed withdrawal for RSA holders, if a holder resigns or retires from work before attaining the age of 50, they could access 25 percent of their RSA savings after four months.
Agudah said that after the PFA has confirmed important information, the rest will be spread once the holder reaches 50 years of age.
Answering a question on the perception that “pension is a scam”, Agudah said that such an expression was just a myth by people who did not have a clear understanding of what the CPS is all about.
He said that pensions currently stand as one of the most strictly regulated sectors in Nigeria, where contributors are guaranteed that their money is safe.
