BY NKECHI NAECHE-ESEZOBOR—The National Pension Commission (PenCom) has approved a temporary regulatory concession allowing Pension Fund Administrators (PFAs) to invest pension assets in the upcoming Initial Public Offering (IPO) of Dangote Petroleum Refinery & Petrochemicals FZE (DPRP).
The approval, contained in a circular dated May 13, 2026, temporarily suspends key investment restrictions and signals a major policy shift by PenCom regarding pension fund participation in equity offerings.
The circular, signed by A.M. Saleem, Director of Surveillance at the commission, stated that the waiver was granted in recognition of the refinery’s strategic importance to Nigeria’s economy, strong fundamentals, and growth potential.
Under the special dispensation, PFAs will be permitted to participate in the IPO without complying with the usual requirements relating to years of existence, profitability records, and dividend payment history prescribed under the Revised Regulation on Investment of Pension Fund Assets.
According to PenCom, the commission carefully evaluated the investment opportunity and the broader economic impact of the proposed IPO on both the pension industry and the Nigerian economy before approving the concession.
“In reaching its decision, the Commission considered DPRP’s strategic importance, strong fundamentals, wide-ranging economic benefits, and growth potential. The Commission also took into account the record of Dangote Industries Limited, DPRP’s majority shareholder,” the circular stated.
PenCom said it granted a special dispensation from Section 6.2.7.1 (iii) of the Revised Regulation on Investment of Pension Fund Assets, specifically waiving the applicable existence, profitability, and dividend requirements, while maintaining other regulatory safeguards.
The commission, however, directed PFAs to ensure that any investments made under the waiver align with their internal investment policies, risk management frameworks, and fiduciary responsibilities to contributors and retirees.
PenCom further clarified that the regulatory forbearance is exceptional, strictly one-off, and applies only to the IPO of Dangote Petroleum Refinery & Petrochemicals FZE.
“It shall not constitute an automatic precedent for future Initial Public Offerings or other investment transactions,” the commission stated.
The circular takes immediate effect.
