Nigerian Pension Funds Have Invested N85.07bn in 3 Ijarah Sukuk issued by FGN


Wednesday, June 09, 2021 / 11:45AM / Bukola Akinyele-Yisau for WebTV / Header Image Credit: The Nation

Proshare Nigeria Pvt. Ltd.

Pension funds in Nigeria have invested about N85.07bn so far in the 3 rounds of Ijarah Sukuk issued by the Federal Government of Nigeria. The Managing Director, AIICO Pension Managers Limited, Mr. Eguarekhide Longe made this point, while speaking on the State of Affairs on Islamic Finance in Nigeria.

In 2004-2014, introducing the new regulation leads to  pension reform act 2014, he said the investment regulation came up and in 2018 the National Pension Commission introduced a multi-fund structure as the past was single fund structure. In February 2019, the commission announce a fund six on ethical investment principles concept of Islamic finance to pension industry. According to him a lot of contributors prefer their money to be invested in ethical finance.

He highlighted 3 significant areas that the pension funds have embraced to achieve scale which include;

  • Understanding pension reform
  • Understanding the participation of pension Funds
  • Knowledge and Capacity Building 

According to him, it has been very useful as a lot of investors want to invest in Islamic Finance. Also, there was an introduction of implementation and framework to ensure that actual investing is done according to Islamic principles. 

Part of the regulation from the CBN is the prescription of a resident shariah advisor on each pension fund administrators or team will assure that things are done in right way. Also, there must be recognition that the fund 6 must-have Islamic shariah-compliant asset as well as conventional assets for a period up to 2025, where it will be shut out completely for the funds to absorb all contributions and make full investments.

He said pension managers believed  investing in projects that are being tied to specific assets, can be monitored, and determine that they meet their objective.

Longe acknowledged the fact that the Islamic finance sector in Nigeria continues to grow with increased interest for market participants, and a growing number of players including  two Islamic banks, four Takaful insurance companies, several microfinance banks and managed funds. 

The first Sukuk issued in 2017  which was invested on physical roadshow, was successful and got 105% subscription, the second sukuk got 132% subscription and the third Sukuk in 2020 got subscription of almost 470%.

The webinar was organized by IFN OnAir Forum in partnership with Nigerian Exchange Group.

Kindly share and stay connected with us on WebTV  platforms via  Twitter, FacebookLinkedInInstagramYoutube

You can also subscribe to our NEWSLETTER here

Proshare Nigeria Pvt. Ltd.

Related News

  1. Dr. Umar Idris to Speak on Sukuk And Nigeria's Economic Development
  2. 2020 Sukuk Supply Resilient with Momentum to Continue into 2021
  3. Review of 2020 Activities In The Islamic Finance Market And The Outlook For 2021
  4. The Case For Leveraging Islamic Finance As A Tool For Economic Development
  5. How United Capital Sukuk Fund Could Benefit Nigerian Low-Income Earners
  6. Sukuk Bonds Can Address the Infrastructure and Housing Deficits In Nigeria - Dr. Aliyu Dahiru
  7. 7 Ways Non-Interest Finance Can Support Nigeria's Economic Sustainability - Dr. Basheer Oshodi
  8. Opportunities for Sub-Nationals To Achieve Socio-Economic Development Through Sukuk  
  9. How To Use Non-Interest Finance To Solve Housing Sector Problem In Nigeria


Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Related News