Capital market operators seek amendment of PENCOM investment guidelines


Some stakeholders in the capital market have urged the National Assembly to ensure the speedy amendment of National Pension Commission (PENCOM) guidelines.

They said that the urgent attention became imperative because the interest of Nigerians in the conclusive resolution of all capital market issues.

They said inLagosthat the PENCOM laws should be reviewed to ensure maximum participation of Pension Fund Administrators (PFAs) in the Nigerian stock market.

NAN recalls that PENCOM had initiated moves for new guidelines that would make it mandatory for PFAs’ to invest a minimum of 10 per cent of pension funds in the equities market.

Mr Emeka Madubuike, Chairman of Association of Stockbroking Houses of Nigeria (ASHON), said that the proposed new legal framework would make PFAs to be active stakeholders in the market.

Madubuike said that PFAs had shied away from the market since 2008 because of what they termed the risky and turbulent character of the market.

He said that PFAs before the crash was investing between 11 and 14 per cent of pension funds in the market against the stipulated 25 per cent, adding that, they should be the largest local investor.

Malam Garba Kurfi, the Managing Director of APT Securities and Funds Ltd., said that the enforcement of the 10 per cent minimum investment would enhance PFAs participation in the market.

Kurfi said that inactive participation of PFAs contributed to market illiquidity, as most them invest less than five per cent of pension funds in the market.

He said that the new guideline requiring a minimum of 10 percent investment in equities would bring succour to the market.

Mr Eugene Ezenwa, the Managing Director of Pac Securities Ltd., said that a lot of pension funds had found their way out of the market since the market crashed in 2008.

Ezenwa also called on PENCOM to ensure prompt review of its investing rules, stressing that a healthy capital market would impact positively the nation’s economy. (NAN).


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