FG to invest more pension fund in stock market

Channels Television  
Updated March 26, 2012

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.

Brokers work on the trading floor of the Nigerian stock exchange in the commercial capital Lagos, April 28, 2010.

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.