By Akinola Ajibade 05/08/2011 05:34:00

Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi, yesterday stated that the unlocking of the N2trillion pension funds is the only way to solve the infrastructural problems in the country.
Sanusi, while speaking during the unveiling of IO Furniture Limited in Lagos, said the apex bank has recorded considerable success through the N500billion intervention fund set aside to resuscitate certain critical sectors of the economy. He said meaningful progress would be recorded if the N2trillion pension funds can be unlocked and further subsidies released to meet infrastructural needs of the country.
The CBN chief said he bought the idea of extending credits to certain sectors of the economy due to their strategic importance, when the proposal came to him two years ago.
He said CBN and the banks will not hesitate to patronise indigenous companies that produce quality products, adding that IO furniture has set the example of what a company can do with the facility offered to it. He added that the rationale behind N500billion fund was to provide long-term facility to companies, stating that not many companies can borrow fund and pay back within a short period of time.
“ Sometimes, I’ m amazed at the kind of commentaries being run on the pages of the newspapers about the performance of CBN. Some are saying the economy is not growing. I do not know how they arrived at that. We have done a lot to fast-track the growth of the economy. We are giving money to the sectors that are critical and of immense values to the economy. However, CBN had to use its balance sheet in a manner that is intelligent enough to contribute to economic growth”, he said.
Also, the Director, Development Finance Institution, CBN, Paul Nduka Eluhaiwe, said the apex bank has disbursed over N199billion out of the N200billion earmarked for the manufacturing sector.
Eluhaiwe said only N300million remained undisbursed before he left Abuja for Lagos yesterday.

http://www.thenationonlineng.net/2011/index.php/business/14799-cbn-eyes-n2tr-pension-fund-to-address-infrastructure.html

Sounds like a good idea. But this pension fund isn't under the control of the CBN, is it?

Also, I wonder what the current N2 trillion is being invested in. . .

ekt_bear:

Sounds like a good idea. But this pension fund isn't under the control of the CBN, is it?

Also, I wonder what the current N2 trillion is being invested in. . .

Your bloody crazy!!

That the CBN should raid the pension pot of Nigerian's who have worked hard all their lives to invest in infrastructure?

How about you consider the position of pensioners before making such a ridiculous comment.

Sun of god, should the pension funds just sit down there doing nothing?

Sun of god:

Your bloody crazy!!

That the CBN should raid the pension pot of Nigerian's who have worked hard all their lives to invest in infrastructure?

How about you consider the position of pensioners before making such a ridiculous comment.

What do you think pension funds in other countries are used for?

@ ekt at the moment it seems there no clear cut instruction for what to do with the funds, i think some % were used to support 'housing' though

Dis Guy:

What do you think pension funds in other countries are used for?

@ ekt at the moment it seems there no clear cut instruction for what to do with the funds, i think some % were used to support 'housing' though

Thanks. I'm sure that more information is available on the site (http://www.pencom.gov.ng/). Poked around a bit, but didn't find the answer immediately.

I hope it isn't just sitting idle and mostly unused. That is what, $13 billion or so? You could build a lot of miles of toll road with that type of money. . .

I tire for the guy o, the money should be used to bring in more money, what we need are people who can manage resources and I am sure that GEJ is not one.

ekt_bear:

Thanks. I'm sure that more information is available on the site (http://www.pencom.gov.ng/). Poked around a bit, but didn't find the answer immediately.

I hope it isn't just sitting idle and mostly unused. That is what, $13 billion or so? You could build a lot of miles of toll road with that type of money. . .

You know!! we have that and we are jumping at foreign loans, Toll roads will earn money forever!!!!
Industrial funds, Agriculturl loans, pensioners will go to bed with two eyes closed and their feet in the air!!

hercules07:

I tire for the guy o, the money should be used to bring in more money, what we need are people who can manage resources and I am sure that GEJ is not one.

I think in the US, the social security fund is invested in US government treasuries. Essentially giving a loan to the US gov't.

I've only started reading a bit about how they do things in Singapore, but their equivalent (called the CPF) was and is also utilized for capital projects and national investment.

I don't like that Sanusi seems to be trying to bring the pension fund under his control, but the basic idea (that the funds can be used to build up the country) I think is sound.

A Pension Fund is there to Fund Pensioners - not infrastructure development.

It should not be risked or gambled with.

No doubt certain western countries invest these funds to make more money - but this often backfires.

Just look at the worldwide stockmarkets where pension funds have traditionally been invested.

When these speculators (Sanusi in this instance) loose the money its never them that suffer.

Sun of god:

A Pension Fund is there to Fund Pensioners - not infrastructure development.

It should not be risked or gambled with.

No doubt certain western countries invest these funds to make more money - but this often backfires.

Just look at the worldwide stockmarkets where pension funds have traditionally been invested.

When these speculators (Sanusi in this instance) loose the money its never them that suffer.

That's because they more often than not use it for this fancy 'financial instruments' they themselves never understand; this instance someone is calling for it to be used for much needed infrastructure, at the moment it seems its only being manager ultra conservatively in govt bonds, I think we need to start looking outside the box a bit, massive unemployment, massive infrastructural deficits