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Nigeria pension reform fuels stock market rally as equity allocation rises

Busy street of Nigeria. Photo Muhammad Ibrahim @ Unsplash
Busy street of Nigeria. Photo Muhammad Ibrahim @ Unsplash
  • Equity limits for pension funds increased
  • Up to $1.6bn may flow into stocks

 

ABUJA, NIGERIANigerian stocks are climbing after regulators raised pension fund investment limits for equities, a move analysts say could channel more than 50% additional funds into the market.

The rally followed a review by Nigeria’s Pension Commission (PenCom), which increased the maximum allocation to equities for Retirement Savings Account (RSA) Funds I, II, III and VI-active to 35%, 33%, 15% and 33%, from 30%, 25%, 10% and 25%, respectively.

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