Pension operators to invest in power projects

Barring last minute disagreement, chunk of pension funds will soon be injected into some power plants projects being conceived by some Nigerian investors.

The investors, it was learnt, are already having discussions with Pension Fund Administrators, on how to seal the deals.

The President, Pension Fund Operators Association of Nigeria (PenOp), Mr. Longe Eguarekhide, who confirmed this development, said the operators were awaiting the developments of the projects.

“We have started to chart the way forward. There was a suggestion that we do small projects. The only problem is that those projects do not impact broadly to the general community. The power project spoken about which is in Lekki, Lagos, is to serve the proposed private refinery.

“The project that the former governor of Cross River State, Donald Duke, is involved in would also require a power project. These projects would be considered. I would like to see those projects developed, so that it can attract pension money. We are already talking,” he said.

The government and private sector have been eyeing pension funds for investment in infrastructure, but their inability to meet the stipulated laws have remained a clog to accessing the funds.

The National Pension Commission (PenCom) has maintained that out of N1.06 trillion available for infrastructure financing; only N1.36 billion has been taken as at 31 December 2015, leaving N1.059 trillion untapped.

PenCom stated that the government and private sector operators were unable to access the funds due to non-availability of investment instruments that qualify them for pension fund investment as stipulated in the Investment Regulations.

It noted that for government to access the pension funds for