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Dr. Gerard Lyons, British Economist and Economic Advisor to the Mayor of London, gave a keynote address at the second edition of the WorldPensionSummit 'Africa Special' (WPS-AS), which kicked off in Abuja, Nigeria’s Federal Capital Territory, on Monday. Chinelo Anohu-Amazu, Director-General of National Pension Commission (PenCom) gave a welcome address. Eric Eggink, Chairman of WPS and Harry H.G. Smorenberg, Founder and co-Chairman of WPS, also gave their respective opening addresses.  

The annual event, organised by the PenCom and the WorldPensionSummit, the Netherlands, has brought together leading players and decision makers in the pension industry in Africa, as well as key figures in finance and pensions from across the world. The theme of this year's Summit is 'Building Sustainable Pension Systems in Africa'. The Summit is focused on entrenching enduring pension systems across the continent with a particular emphasis on channeling pension funds towards addressing Africa’s infrastructure deficits.

Dr. Lyons looked at the Nigerian economy from global, regional and national perspectives and how the country’s huge pension fund assets can impact on the economy and infrastructure development. "Regionally, Africa is globalising at a fast pace and I think 'Pan Africanism' may become a more common future term, capturing the mood of the time. In this context, Nigeria can assume a greater regional role, as it is already doing in West Africa," Lyon said.

To appreciate the domestic challenge, Lyons gave the foreign view of Nigeria, what is being said, and also where he felt it was right and wrong. He said: "There is unease about corruption and concern about security. It is good therefore that the administration is addressing these head on. It is also important to remember that in a world of high debts, Nigeria's debt position is a big advantage and gives it room for fiscal flexibility. Its market size, young sizeable population, entrepreneurial spirit, and the growth of its service sector are also key positives that should not be overlooked."

Dr. Lyons advocated that the country should focus on hard, soft and institutional infrastructure, which in turn would help address social infrastructure. "Hard infrastructure opportunities include broadband and transport such as road and rail as well as housing and energy," he said.

"Soft infrastructure is building the skills and education needed, while institutional infrastructure is linked to openness and transparency, as strong institutions allow confidence, enable growth and greater investment and create stability. Regulations, rules and laws are also vital so Nigeria should be proud of the progress made by PenCom on this so far. However, it's important that the country continues to build on this progress, embracing change and planning for the future," the Economic Advisor to Boris Johnson said.

Speaking at the summit earlier on Monday, Anohu-Amazu said: "The Summit, which will continue tomorrow, has already provided a vital platform for pension regulators and operators in Africa to brace up to this challenge and discuss other ways in which pension funds can positively contribute to the socio-economic growth of the continent, whilst also ensuring that retirement benefits are paid as and when due."