Pension Funds: We can’t invest in speculative areas – PFAs
The chairman, Pension Funds Operators Association of Nigeria (PenOp) Mr. Eguarekhide Longe has disclosed that giving the speculative nature of Agriculture production in the country, pension funds would not be invested in it.
Longe made the clarification following suggestions and questions on whether accumulated pension funds which currently stood at N5.3 trillion could aid in agriculture production as a mean of diversifying the economy and improving food insecurity in the country.
Speaking to the journalists in a Media Retreat organized by PenOp in Lagos, Longe stated that giving the high risk associated with agriculture production in the country, pension funds could not go into it.
“We are made to invest in such a way that the funds will not get lost, we cannot made investment that are too speculative. I think agricultural system in Nigeria currently is highly speculative”, he stated.
He noted that the biggest problem associated with agriculture production in Nigeria is lack of distribution channels adding that there was need to plan all necessary processes for agriculture to strive.
“In diversifying from oil, you have to plan all needed processes. In my own view, one of the biggest problems we have in agriculture is distribution. As a result, a lot of products will not move from the farm beats to where they are needed. Much of what is produced perishes before it gets to where they are to be utilized.
How do you create efficient distribution channels to aid that products get where they can be utilized, get paid and put the money back into production. It is not enough about just putting crops in the ground, just think about processing” he said.
Longe explained that it was not the responsibility of the pension operators to provide necessary aid such as silos, good storage system, roads to farmers but “they (pension operators) can invest in improving on them.”