The Managing Director, Sigma Pensions, Dave Uduanu has called for an increased ethical investment as a means to aide financial inclusion nationwide.
Uduanu said this at the second edition of Sigma Pensions business roundtable with the theme: ‘Navigating the frontiers of ethical investing,’ held in Abuja recently.
He said: “Ethical Finance will help drive greater financial inclusion and pension enrolment. Nigeria’s financial exclusion rate at the end of 2018 was estimated at 37 per cent, with large exclusion observed in the northern regions.
“The demand for ethical finance products is increasing in Nigeria, and increasingly more products and services are being introduced by conventional asset managers, banks, and insurance companies. The pension fund industry cannot be left out, as more and more RSA holders indicate increased interest in ethical finance products.
“It is on this premise that Sigma Pensions has put together this event with industry experts as well as key stakeholders in the broader pension fund and wider financial sector to brainstorm on ideas to catalyse a significant transformation in ethical investing in Nigeria.”
He added: “The benefits of fostering growth in the provision of ethical investment for the pension fund industry are manifold. A vibrant ethical financial system will help crowd in a new class of institutional and retail investors into the Nigerian financial system which will help deepen the breadth and sophistication of the fund management industry.
“A key tenet of robust financial markets is the existence of many players on both demand and supply having diverse opinions, desires and needs, which allow for a more efficient price setting mechanism. It will help drive greater financial inclusion and pension enrolment. Nigeria’s financial exclusion rate at the end of 2018 was estimated at 37 per cent with large exclusion observed in the northern regions.
He further added: “Among other reasons, the reluctance towards the formal financial sector in the north likely reflects unease with conventional products. With the option of retirement savings products suited to ethical preferences, it is easy to see a ready outlet for raising financial inclusion.”