Chief Investment Officer of Access ARM Pensions, Wale Okunrinboye, has urged institutional investors to take a more active role in financing sectors critical to Nigeria’s economic growth.
Speaking at the Ninth Nigerian Association of Insurance and Pension Editors conference in Lagos, Okunrinboye noted the need for pension funds, insurance companies, and key stakeholders to collaborate with government to achieve Nigeria’s goal of becoming a $1 trillion economy.
He said countries transitioning from underdeveloped to developed economies undergo a robust phase of industrialisation, followed by growth of high-service sectors.
But Nigeria, like many African nations, has bypassed the industrialisation phase, relying on the services sector.
This gap, he noted, poses a challenge in job creation and fostering sustainable growth.
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Okunrinboye stressed that attracting local and foreign investments is essential for Nigeria to become fully industrialised. He urged long-term investors, focused on government securities, to diversify their portfolios into sectors that can drive industrialisation.
“To transition into a fully industrial economy, we need to attract investments—local and foreign. This is where pension funds and others come in. A large portion of pension fund investments is in government securities, but recent discussions have focused on the need to invest beyond government securities to catalyse and develop the economy,” he said.
He continued: “For long-term investments, pension funds, insurance companies, and the broader financial system, it’s time to engage the economy, collaborate with government, and work with stakeholders to develop financing arrangements to support critical projects, which can help Nigeria achieve industrialisation and boost exports.”
“For institutional investors, it is time to engage the economy, invest in projects that drive industrialisation, and are export focused to generate revenue, enhance exports, create jobs, and increase tax revenue, ultimately propelling Nigeria to a $1 trillion economy …”
Okunrinboye further noted that Nigeria’s underutilised labour force represents its greatest resource. “Our workforce is semi-skilled due to limited education. Typically, such a labour force is absorbed by industrial sectors. But without fully passing through the industrial phase, we aren’t creating jobs necessary for economic development,” he explained.