Nigeria's pension industry: Outlook for the next 4 years

Nigeria's pension industry has seen significant reforms in the first four years of President Buhari's administration. As the country looks ahead, the outlook for the sector in the next four years remains a topic of discussion. Niyi Falade, CEO of Crusade Sterling Pensions, shared insights on the potential changes and challenges facing the industry in an interview with CNBC Africa. The key theme that emerges from the conversation is the need for government intervention and policy reforms to unlock pension funds for infrastructure development. Here are three key points highlighted in the discussion: First, the current state of the pension industry in Nigeria presents challenges in terms of coverage and investment diversification. With only 6% of the working population enrolled in pension schemes, there is a pressing need to expand coverage and explore opportunities for investment growth. Secondly, the CEO emphasized the importance of bankable infrastructure projects to attract pension funds. The lack of viable projects and governance issues have hindered the flow of capital into infrastructure development. Lastly, the role of government guarantees in accelerating investment in infrastructure was discussed. By providing financial assurances, the government can instill confidence in investors and drive interest in infrastructure projects. Niyi Falade underscored the potential for infrastructure investments to enhance risk-adjusted returns for pension funds, thereby contributing to economic growth and stability in Nigeria. In conclusion, the path to unlocking Nigeria's pension funds for infrastructure development lies in aligning policies, improving project viability, and leveraging government guarantees to attract investors. As the country navigates the next phase of pension reforms, these strategies will be crucial in driving sustainable growth and development.