The National Pension Commission has granted regulatory forbearance to Pension Fund Administrators (PFAs) to invest pension fund assets in the proposed Initial Public Offering (IPO) of Dangote Petroleum Refinery & Petrochemicals FZE.
The approval was conveyed in a circular issued by the commission and addressed to all licensed pension fund operators.
The circular, signed by the Director of Surveillance Department at PenCom, Abdulrahman Saleem, stated that the directive takes immediate effect.
According to the commission, the decision followed a careful evaluation of the strategic investment opportunity presented by the proposed IPO and its potential impact on both the pension industry and the wider Nigerian economy.
PenCom explained that the approval came after reviewing a request for special dispensation to enable PFAs to invest pension fund assets in the refinery’s public offering.
The commission noted that it considered several factors, including the strategic importance of the refinery, its strong business fundamentals, growth prospects, and the expected economic benefits of the investment.
It also cited the track record of Dangote Industries Limited, the majority shareholder in the refinery company, as part of the considerations that informed the decision.
According to PenCom, the approval involves granting a special dispensation from Section 6.2.7.1 (iii) of the Revised Regulation on Investment of Pension Fund Assets.
The waiver covers requirements relating to existence, profitability, and dividend history, while all other regulatory safeguards remain applicable.
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However, the commission directed PFAs to ensure that investments made under the dispensation align with their internal investment policies, risk management frameworks, and fiduciary responsibilities to contributors and retirees.
PenCom stressed that the regulatory forbearance is exceptional, one-off, and strictly limited to the IPO of Dangote Petroleum Refinery & Petrochemicals FZE.
The commission added that the approval should not be interpreted as an automatic precedent for future IPOs or similar investment transactions.
