Access ARM Pensions is urging long-term and institutional investors to step up and finance critical sectors essential for Nigeria’s industrialization and economic growth.
Speaking at the ninth Nigerian Association of Insurance and Pension Editors conference in Lagos, Wale Okunrinboye, Chief Investment Officer of Access ARM Pensions, highlighted the urgent need for collaboration between pension funds, insurance companies, and the government. This partnership is crucial for Nigeria to achieve its ambitious goal of becoming a $1 trillion economy by 2030.
Okunrinboye explained that countries typically transition from underdeveloped to developed economies by going through a robust phase of industrialization before advancing to high-service sectors. However, Nigeria has largely skipped this phase and heavily relies on the services sector, which poses significant challenges to job creation and sustainable economic growth.
He stated, “To transition into a fully industrial economy, we need to attract investments—some of which should be local and some foreign.” Okunrinboye stressed that pension funds and other long-term investors, traditionally focused on government securities, must diversify their portfolios into sectors that can stimulate industrial growth.
“A large portion of pension fund investments is currently in government securities, but recent discussions have emphasized the need to invest beyond these as a means to catalyze and develop the economy,” he noted.
Okunrinboye also called on institutional investors to actively engage with the economy and invest in projects that are both industrial and export-focused. “By doing so, we will generate revenue, enhance exports, create jobs, and increase tax revenues, ultimately propelling Nigeria toward the $1 trillion economy target set by the government,” he explained.
He underscored Nigeria’s large but underutilized labor force as a significant resource. “Our workforce is semi-skilled due to limited education. Typically, such a labor force is absorbed by industrial sectors. But without fully engaging in industrialization, we aren’t creating the jobs necessary for widespread economic development.”
In line with this vision, President Bola Tinubu set the goal of transforming Nigeria into a $1 trillion economy by 2030. To support this objective, the Central Bank of Nigeria has introduced new capital requirements for banks operating in the country, with a two-year deadline to comply.
By fostering collaboration among financial stakeholders and the government, Okunrinboye believes Nigeria can successfully navigate its industrialization journey and create a vibrant economy that benefits all. The call to action for investors comes at a critical time, as Nigeria seeks to leverage its resources and talent to achieve sustainable growth and development.
