The Federal government is to increase the limits on pension funds’ investment in the stock market to half of their portfolio from a quarter currently, according to proposals from the regulator seen by Reuters, a move that could greatly boost its share index.
Nigeria’s pension funds were worth around $13 billion in 2010 and have been growing at a rate of 30 per cent per year.
Its equity market struggled to sustain a recovery after a more than 60 per cent fall in local equities in 2008, which led to a mass exodus of domestic investors, including pension funds.
