Uduanu: PFAs Investment in Infrastructure Yielding Around 20%

Nume Ekeghe

The Managing Director and Chief Executive Officer, Sigma Pensions, Mr. Dave Uduanu has stated that Pension Fund Administrators (PFAs) investments in infrastructure are currently yielding as high as 20 per cent. 

He noted that although the exposures of PFAs to infrastructure are small, the ripple impact of investing in the critical infrastructure needed by Nigeria is also a gain for the PFAs.

He revealed this recently In Lagos at the Private Equity and Venture Capital Association of Nigeria (PEVCA) conference where stakeholders converged to discuss ‘The Road Ahead, Private Capital for National Development. 

“ If you look at the alternative broad asset class, what has done well is infrastructure funds. Infrastructure debt as a sub-asset class is about 1 percent of the industry and within that 10 percent construct and this fund has done well. One of the infrastructure debt funds although in the early days is tracking at 20 percent of returns and it is naira based, “Uduanu said.

Furthermore, he added that asides it providing competitive returns, another gain for his firm is being able to reduce the infrastructure deficit in Nigeria.

He added: “We are currently invested in two infrastructure funds and they are and they are doing very well. Infrastructure funds are doing better than private equity funds and we would begin to see more interest in that area. We would allocate more money to infrastructure because as we know the country needs a lot of infrastructures and the pension funds are getting competitive returns from these infrastructure funds.”