NIGERIA - Nigeria plans to use 400bn naira ($2.6bn) from its pension funds to encourage foreign investment in its power industry, central bank governor Lamido Sanusi said.
The bank's role will likely be to "provide the comfort and the guarantees to allow the pension funds to release the money to viable and eligible power projects," Sanusi said.
President Goodluck Jonathan last month announced a plan to end the state power monopoly and expand electricity generation through private investment.
The government will sell 11 distribution units of Power Holding Co. of Nigeria and allow private companies to build gas-fired, coal-fuelled and hydroelectric plants, Jonathan said.
Blackouts are a daily occurrence in Nigeria, where demand for electricity is almost double the current supply of 3,000 megawatts. The West African nation is the continent's most populous, with 140 million people. The government wants to increase output to 14,019 megawatts by 2013.
Out of about 2trn naira of pension funds in the country, the Central Bank of Nigeria is working with the Pension Commission "to see how we can unlock about 400bn of that into power infrastructure," Sanusi said.
Nigeria could achieve an annual growth rate of 10% as the government improves the country's power and transport capacity, Finance Minister Olusegun Aganga said on September 3.
Growth was 7.4% in the first half of the year, compared with 5.9% in the same period last year, he said.
The Pensions Regulator (TPR) has granted 11 master trusts extensions to apply for authorisation, as it confirms it has received 22 applications ahead of the 31 March deadline.
Aegon Master Trust, Fidelity Master Trust and Ensign have sent off their authorisation applications to The Pensions Regulator (TPR).
Self-administered pension funds spent £15bn on payments to pensioners in Q4 2018, but received just £12bn in contributions (net of refunds), Office for National Statistics (ONS) data reveals.
Aberdeen Standard Investments (ASI) and Gresham House are to team up to form a joint venture.