The National Pension Commission has granted a special approval allowing Pension Fund Administrators to invest pension fund assets in the upcoming Initial Public Offering of Dangote Petroleum Refinery and Petrochemicals. 

PenCom said the decision followed a careful review of the strategic opportunity and its potential impact on the pension industry and the wider economy.

In a circular issued to all PFAs, PenCom cited Dangote Refinery’s strategic importance, strong fundamentals, and economic benefits, alongside the track record of its majority shareholder, Dangote Industries Limited. 

The regulator granted a waiver from certain investment rules, including requirements on company existence, profitability and dividend history, without compromising other regulatory safeguards.

PenCom stressed that PFAs must ensure any investments under this approval align with their internal policies, risk management frameworks and fiduciary duties to contributors and retirees. 

The Commission described the approval as exceptional, one-off and strictly specific to the Dangote Refinery IPO, adding that it will not serve as a precedent for future offerings or transactions.

The circular takes immediate effect, and PenCom advised PFAs to direct any enquiries to the Surveillance Department. The move is expected to open pension funds to a major industrial project seen as critical to Nigeria’s energy and economic development

 

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