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Tackling Infrastructural Gap in Nigeria: The Pension Fund Option

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  • Onwuka, Ifeanyi Onuka
  • Nwafor, Michael

Abstract

The paper reviewed the prospect of using the hugely untapped pension funds to bridge infrastructural financing gap in Nigeria. Infrastructure financing is estimated to cost Nigeria a total investment of USD2.9 trillion over the next 30 years to bring it to the level that can be competitive and self-sustaining. This huge investment outlay is clearly beyond the yearly fiscal operations of government. However, there is a glimmer of hope by way of pension funds, which as at August, 2016, is in excess of N5.9 trillion. This phenomenal growth in pension funds presents a rare opportunity to bridge the nation¡¯s current infrastructure gap by leveraging part of the huge pension assets for developmental purposes. The authors argued that there is need to review the regulatory and institutional framework in pension funds administration to make way for a creative use of some of the pension funds to fund infrastructure ¨C creating a veritable profitable investment outlay for the pension funds contributors and at the same time providing the needed funding for critical infrastructure financing in the country.

Suggested Citation

  • Onwuka, Ifeanyi Onuka & Nwafor, Michael, 2018. "Tackling Infrastructural Gap in Nigeria: The Pension Fund Option," Applied Economics and Finance, Redfame publishing, vol. 5(2), pages 73-83, March.
    • Handle: RePEc:rfa:aefjnl:v:5:y:2018:i:2:p:73-83
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    References listed on IDEAS

    as
    1. Georg Inderst, 2009. "Pension Fund Investment in Infrastructure," OECD Working Papers on Insurance and Private Pensions 32, OECD Publishing.
    2. Javier Alonso & Jasmina Bjeletic & Carlos Herrera & Soledad Hormazabal & Ivonne Ordonez & Carolina Romero & David Tuesta, 2010. "A Balance of Pension Fund Infrastructure Investments: The Experience in Latin America," Working Papers 1003, BBVA Bank, Economic Research Department.
    3. Raffaele Della Croce & Christopher Kaminker & Fiona Stewart, 2011. "The Role of Pension Funds in Financing Green Growth Initiatives," OECD Working Papers on Finance, Insurance and Private Pensions 10, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    volatility transmission; univariate GARCH; bivariate GARCH;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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