Access ARM Pensions seeks institutional support to drive Nigeria’s $1trn economy goal

Business a.m.

Access ARM Pensions, a leading pension fund management company in Nigeria, has urged long-term and institutional investors to actively invest in sectors that are vital for the country’s industrialisation and economic growth.

Wale Okunrinboye, chief investment officer, Access ARM Pensions, stated this during his keynote address at the 9th Nigerian Association of Insurance and Pension Editors (NAIPE) conference in Lagos.

Okunrinboye underscored the necessity of coordinated efforts between pension funds, insurance companies, and other financial institutions, alongside the government, to achieve Nigeria’s long-term economic target of becoming a $1 trillion economy.

The chief investment officer emphasised that successful economic transitions from underdeveloped to developed economies typically involve a robust industrialisation phase that then gives way to high-service sectors.

However, he noted that Nigeria, along with many sub-Saharan African countries, has largely bypassed the critical industrialisation stage, resulting in an over-reliance on the services sector.

Okunrinboye highlighted the importance of attracting investments, both local and foreign, as a key step towards Nigeria’s transformation into a fully industrialised economy.

He implored pension funds and other long-term investors, who have traditionally favoured government securities, to consider diversifying their portfolios and investing in sectors that are critical for driving industrialisation.

Okunrinboye also noted that these strategic investments would not only support Nigeria’s transition to a more diversified economy but would also provide investors with new opportunities for growth and returns in the long term.

The investment expert highlighted the vital role of pension funds and other long-term investors in driving Nigeria’s transition to a fully industrialised economy.

He pointed out that, while pension funds have traditionally allocated a significant portion of their investments to government securities, the need for diversification and investment in critical sectors that can drive industrialization has been gaining traction in recent discussions.

“For long-term investments, pension funds, insurance companies, and the broader financial system, it’s time to engage the economy, collaborate with the government, and work with stakeholders to develop financing arrangements that support critical projects. These projects should help Nigeria achieve industrialisation and boost exports,” he added.