N63bn pension fund lodged with CBN

Category: Pensions


  Read (1598)
N63bn pension fund lodged with CBNA total of N63 billion deducted from workers’ income under the contributory pension scheme is lying idle with the Central Bank of Nigeria, while a paltry N400 million has been released into the economy by pension fund administrators. Bismack Rewane, CEO financial Derivatives Company who disclosed this to BusinessDay in an exclusive interview, also said the resolution of the third term logjam would boost investor confidence in the economy. Rewane says that out of the money already released, N80 million is expected to go into the stock market, an amount, he considers tiny compared with the N1 billion traded on the stock exchange Tuesday. The Contributory Pension Act provides that employers and staff should set aside 7.5 percent each as pension for workers’ appropriation on retirement. Speaking on stock market activities, Rewane said although the resolution of the third term crisis would lift the market, a lot will depend on the Independent National Electoral Commission (INEC). The investment analyst says stocks listed on the Nigerian Stock Exchange are overvalued and their prices would soon go down as the market corrects the abnormality. According to him, banking stocks control about 50 percent trading on the market, and returns on investment, at 7 percent are low compared with treasury bill rate. He however expressed optimism that the market would record significant growth for patient investors. The stock market which has been bearish in the last couple of months, recently staged resurgence with market capitalisation growing from N2.541 trillion March 7, 2006 to N2.77 trillion May 11, 2006. - businessday

Tags: , 


Comment With Your Facebook or Yahoo! ID


Latest news


News on Pensions

Feedback Form Subscribe/Unsubscribe Inside Proshare Directory Investment Community Developer Newsletters Site Map

Get our toolbar!