The Association of Estate Agents of Nigeria (AEAN) has called for a review of the Real Estate Investment Trusts (REITs) laws to allow direct investment of pension fund in real estate development.
Mr. Adeolu Ogunbanjo, AEAN Chairman, made the call in an interview with the News Agency of Nigeria (NAN) in Lagos on Friday.
According to him, REITs laws and the National Pension Commission (PenCom) guidelines prohibit pension funds from being directly invested into real estate.
He said that REITs regulations directed that pension funds could only be invested in mortgage-backed securities.
Ogunbanjo said contributions to PenCom under the national contributory pension fund had accumulated to more thn N6.3 trillion.
“These are idle funds that can be unleashed into the real estate sector to stimulate business activities and create room for people to invest in the sector.
“The fund is enough to grow the building construction industry and the economy as a whole if properly harnessed and managed,’’ he said.