Uduanu Advocates Using Pension Funds to Bridge Nigeria’s Infrastructure Gap

Nume Ekeghe

The Managing Director/Chief Executive Officer of Access Pensions Limited, Dave Uduanu has advocated for the utilisation of pension funds to address Nigeria’s infrastructure deficit.

 Speaking with newsmen in Lagos, Uduanu said by tapping into the pension fund investment landscape; Nigeria could reduce its reliance on external borrowing and mitigate financial vulnerabilities.

This approach, he added, is especially crucial given the ongoing expansion of the industry and the limited investment instruments available for pension funds.

Uduanu noted that while a substantial portion of pension investments currently resides in fixed income, there’s room for greater allocation to infrastructure.

He stated, “One thing we can do better is on visible impact. One-way people can truly feel the tangible impact of their pensions is in the area of infrastructure investments. Today, a large portion of pension fund investments are in fixed income, but imagine driving on a road built with pension funds that’s when people will realise their pension fund is truly working for them.”

He also raised a crucial question regarding the future of pension fund portfolios, “We started this industry in 2004, and now it’s about N16 trillion. In the next 10 to 15 years, what will the investment portfolio look like? Will it still be dominated by government securities, or will it play a more significant role in financing infrastructure and stimulating economic growth?”

He reiterated the persistent infrastructure deficit in Nigeria and suggested that with a well-defined framework, long-term funds, such as pensions and insurance, could be channelled effectively toward infrastructure financing.