With over N5 trillion worth of maturities expected in the Treasury Bills and Bond Market in the second half of 2020, liquidity will boost the economy for the rest of the year as investors seek instruments to put funds into.
the Chief Investment Officer, Sigma Pensions, Mr. Pabina Yinkere made this projection at a Sigma Pensions webinar where he spoke on the investment climate in Nigeria, Impact of COVID-19 on pension’s returns and the way forward.
He said: “If we look at treasury bills and bonds that are going to mature between now and the December period, it is over N5 trillion worth of maturities, which are things that we have invested in and would be paid back to us in cash. So, to keep the investments going, we have to re-invest this into the market.
Speaking on the effect it would have on the stock market, he said: “If we then look at the stock market, the Nigerian stock market is highly correlated to oil prices. As we have seen a decline in the oil price over this year following the advent of COVID-19, you would see that the market hasn’t done very well.”
On reassuring the safety of pension funds, he said: “Because of the way the pension scheme has been run and operated, you would find that from the PENCOM investment regulation, it provides some level of security in and around pension instruments.