PenOp Allays Fears over Impact of CBN’s OMO Restriction


Pension fund operators have assured stakeholders that the recent ban on individual and local firms from investing in both primary and secondary open market operations (OMO) auctions will not have much effect on returns on investment of pension funds.

The pension sector operators under the aegis of Pension Fund Operators Association of Nigeria (PenOp) and the sector’s regulator, PenCom, state this at a recent media retreat organised for National Association of Pension and Insurance Correspondents(NAIPCO) in Lagos.

They said contributors needed not to worry over the recent development, assuring that investors of pension funds are experts and are in better position to find alternative investment portfolios that would yield better returns.

Both Managing Director ARM Pensions, Mr Wale Odutola who is also Head PenOp Branding and Communications and Head Corporate Communications, National Pension Commission (PenCom), Mr. Peter Aghahowa stated that PFAs are trusted professionals in investing funds.

“When one outlet closes, there are several other outlets in line with the investment guidelines laid out there, so really this is where professionalism comes to play and that’s the difference. So we don’t think this is a problem.”

“The investment department of PFAs are professionals, we believe there is capacity to ensure we get fair returns because that is the essence, to expect returns at the end of the day”, the ARM pensions boss stated.

Also speaking, PenOp president Mrs. Aderonke Adedeji, said: “We should remember that this is an instrument the central bank uses to manage liquidity in the economy. It is just that we have enjoyed access to this market in recent times.

“There are periods when we do not have access to this market. It just that we were enjoying something before that we don’t want to let go, so naturally we will react.

“Yes, it is going to affect us, in that our returns won’t be as high but we will go back to other investments. They are doing what they are supposed to do,” she said.
Speaking on the performance of the Micro Pension Scheme Adedeji said: “Like anything that is new, it will need re-thinking, reworking, evaluating and analysing.

“Yes, we have not done as expected but we are growing gradually. So, let’s see how things go, let’s study it a bit more and see why it hasn’t been yielding as expected, let’s give it time before we start talking about changing approach.”