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Lack of FG’s guarantee denying investors’ access to N5.96tn pension funds

Indications have emerged that why Contributory Pension Scheme, has been hard to be accessed by many investors are largely due to inability to get the needed guarantee from the federal government.

Otherwise, government had been very careful in letting investors tap from the deep pockets of the scheme which now stood at about N5.96tn.

Investigation has show that government had placed stringent conditions to limit cases of non-performing loan syndrome currently hitting on banks with poor loan terms.

It would be recalled that the funds remain the safest when compared to other polls of fund in the country for now.

The Chairman, Pension Fund Operators Association of Nigeria, Mr. Eguarekhide Longe, noted that the operators had to comply with PenCom’s regulations on investment of pension funds.

He said the inability of investors to access the facility cannot be unconnected with getting certain clarifications on the status of their projects before pension funds could be invested in them.

He said the surest way to access the loan is to get the government’s backing and come up with a disciplined business case.