Business

PenCom grants one-off approval for PFAs to invest pension funds in Dangote Petroleum Refinery

Published

6 months ago

May 16, 2026

PenCom Stops PFAs from Investing in Commercial Papers.jpg

The National Pension Commission (PenCom) has granted Pension Fund Administrators (PFAs) a ‘one-off’ special approval to invest pension fund assets in the proposed Initial Public Offering (IPO) of Dangote Petroleum Refinery & Petrochemicals FZE.

The approval was disclosed in a circular signed by the Director of the Surveillance Department at the Commission, A. M. Saleem. PenCom said the approval takes immediate effect.

According to the commission, the decision followed a careful evaluation of the strategic investment opportunity and the economic impact of the proposed IPO on both the pension industry and the wider Nigerian economy.

“The Commission has carefully evaluated the strategic investment opportunity and the economic impact of the proposed Initial Public Offering (IPO) of Dangote Petroleum Refinery & Petrochemicals FZE (DPRP) on the pension industry and the wider economy.

“In light of these considerations, the Commission has reviewed the request for a special dispensation that would permit Pension Fund Administrators (PFAs) to invest pension fund assets in the IPO,” the circular stated.

PenCom said it considered the refinery’s strategic importance, strong business fundamentals, economic benefits, and growth potential before approving the request.

It also noted that the track record of Dangote Industries Limited, the majority shareholder in DPRP, influenced the decision.

“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,” PenCom stated.

According to the circular, the commission granted a special dispensation from Section 6.2.7.1 (iii) of the Revised Regulation on Investment of Pension Fund Assets.

The approval waives the existing requirements relating to the company’s years of existence, profitability, and dividend payment history, while maintaining other regulatory safeguards.

“Accordingly, the Commission hereby grants a special dispensation from Section 6.2.7.1 (iii) of the Revised Regulation on Investment of Pension Fund Assets.

“This dispensation involves waiving the applicable existence, profitability, and dividend requirements without prejudice to other extant regulatory safeguards,” it stated.

PenCom, however, directed PFAs to ensure that any investment made under the dispensation aligns with their internal investment policies, risk management frameworks, and fiduciary responsibilities to contributors and retirees.

READ ALSO: PenCom to channel pension capital into national development projects

The commission further clarified that the regulatory forbearance is exceptional, one-off, and strictly limited to the IPO of Dangote Petroleum Refinery & Petrochemicals FZE.

“The regulatory forbearance granted under this Circular is exceptional, one-off, and strictly case-specific to the Initial Public Offering of Dangote Petroleum Refinery & Petrochemicals FZE.

“It shall not constitute an automatic precedent for future Initial Public Offerings or other investment transactions,” PenCom said.

Related Topics:approval Dangote funds grants invest oneoff PenCom Pension Petroleum PFAs refinery

Up Next

NCC Urges Judges to Strengthen Digital Law Knowledge

Don't Miss

S&P upgrades Nigeria’s credit rating, FG reacts

Click to comment

Business

PenCom Introduces New Consent Rules for Retirees’ PenCare Enrolment

Published

5 hours ago

October 31, 2026

PlateauReports

BY NKECHI NAECHE-ESEZOBOR—The National Pension Commission (PenCom) has directed all licensed Pension Fund Administrators (PFAs) to obtain informed consent from eligible retirees seeking possible enrolment in its PenCare Initiative during the processing of their retirement benefits.

The directive, contained in a circular signed by A. M. Saleem, Director, Surveillance Department, to all licensed PFAs, requires pension operators to obtain retirees’ consent at the point they execute their Programmed Withdrawal Agreement. The commission noted that the directive takes immediate effect.

According to the Commission, the PenCare Initiative was established in collaboration with Licensed Pension Fund Operators (LPFOs) to improve access to quality healthcare services for eligible retirees under the Contributory Pension Scheme (CPS).

The initiative is designed to facilitate healthcare coverage for eligible retirees in line with the eligibility criteria approved by the Commission.

PenCom explained that the standardised consent process was approved to enhance the timely identification and enrolment of eligible retirees, eliminate delays associated with obtaining consent after retirement benefits have been processed, establish a uniform industry-wide procedure and improve the quality and completeness of enrolment records.

Under the new directive, every PFA is required to obtain the informed consent of eligible retirees who elect Programmed Withdrawal at the time they execute their retirement agreement.

The Commission specified that consent must be obtained using the standard PenCare Consent Form prescribed by PenCom. The form must be completed separately and must not form part of, or alter, the Programmed Withdrawal Agreement.

However, PenCom emphasised that the execution of the Programmed Withdrawal Agreement must not be made conditional upon a retiree agreeing to participate in the PenCare Initiative.

It further stated that a retiree’s decision to decline participation in the initiative must not affect the processing or payment of his or her retirement benefits.

To ensure that retirees make informed decisions, PenCom directed PFAs to explain the purpose of the PenCare Initiative before requesting consent and ensure that participation is voluntary, without coercion or undue influence.

The pension operators are also required to obtain retirees’ signatures on the prescribed consent forms and retain the signed documents as part of their retirement benefit records.

In addition, PFAs must maintain appropriate records of retirees who consent to participate in the initiative and those who decline. They are also required to submit information on consenting retirees to the Commission in the format and at the frequency prescribed by the regulator.

On data privacy, PenCom directed PFAs to ensure that personal information collected under the circular is processed solely for determining eligibility and facilitating enrolment into the PenCare Initiative.

The Commission further stated that such information must not be disclosed to third parties except where authorised by PenCom or required by law.

It also mandated pension operators to handle all personal information in accordance with the Nigeria Data Protection Act, 2023, the General Application and Implementation Directive (GAID), 2025, and other applicable laws and regulations issued by the Nigeria Data Protection Commission.

Regarding record keeping, PFAs are required to retain all executed PenCare Consent Forms as part of retirees’ retirement benefit documentation and make the records available to PenCom during routine or special supervisory examinations or upon request.

PenCom said it would monitor compliance with the circular through its routine supervisory and examination activities.

The Commission warned that failure to comply with the provisions of the circular may attract appropriate regulatory action in accordance with the Pension Reform Act 2014 and other applicable regulatory instruments.

PenCom also directed that all inquiries regarding the circular should be forwarded to the Head, Benefits and Insurance Department.

The post PenCom Introduces New Consent Rules for Retirees’ PenCare Enrolment appeared first on Business Today NG.

Business

Nigeria, Russia move to replace 59-year-old aviation agreement

Published

13 hours ago

October 31, 2026

PlateauReports

Nigeria and Russia have agreed to replace a 59-year-old aviation agreement, aiming to update air transport relations and create opportunities for stronger connectivity between the two countries.

The agreement to renegotiate the Bilateral Air Services Agreement (BASA), which dates back to 1967, was reached during a meeting between Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, and Russian officials on the sidelines of the Third Russia-Africa Summit in Moscow.

Mr Keyamo disclosed the development in a post on his X account on Friday, saying both countries had agreed to complete negotiations within six months and sign a new agreement in Saint Petersburg, Russia, in April 2027.

He said the Nigerian delegation met with Dmitry Stanislavovich Zverev, the State Secretary and Deputy Minister of Transport of the Russian Federation.

“We resolved to renegotiate our last Bilateral Air Service Agreement that was made in 1967. We set a timeline of six months to conclude the negotiations and sign a new one in Saint Petersburg in April 2027,” Mr Keyamo said.

He added that both countries had formed negotiating teams to begin work toward an agreement within the agreed period.

The proposed renegotiation is expected to update the framework governing air transport between Nigeria and Russia, reflecting changes in the international aviation industry over the past six decades.

What the agreement means

A Bilateral Air Services Agreement provides the legal framework for scheduled air services between two countries. It generally sets out the conditions under which airlines from both countries can operate international flights, including routes, traffic rights, designated airlines and other operational arrangements.

Nigeria’s Ministry of Aviation and Aerospace Development says its Air Transport Management Department negotiates and reviews new and existing air services agreements and monitors their implementation.

The ministry also works with the Nigerian Civil Aviation Authority and other aviation agencies to facilitate international air links and regulate airline operations.

The proposed replacement of the Nigeria-Russia agreement could therefore create opportunities for improved air connectivity and cooperation between their aviation sectors.

However, neither Mr Keyamo nor the ministry disclosed proposed flight routes, designated airlines or the frequency of possible operations under the new agreement.

Wider cooperation

Beyond the aviation agreement, Mr Keyamo said the meeting also examined other areas of cooperation between Nigeria and Russia.

He said both sides had resolved to explore additional opportunities in the coming months.

The Nigerian delegation included the Director-General of the Nigerian Civil Aviation Authority, Capt: Chris Najomo, and the Registrar of the Nigerian College of Aviation Technology, Dr Danjuma Adamu Ismaila.

Directors from the Federal Ministry of Aviation and Aerospace Development and the NCAA also participated in the discussions.

ALSO READ: Nigeria sends low-level delegation to Russia-Africa summit

Nigeria and Russia have maintained diplomatic relations since shortly after Nigeria gained independence in 1960. Their relationship has included cooperation in areas such as defence, trade, science and technology.

According to the Nigerian Embassy in Russia, the Soviet Union provided political and military assistance to Nigeria during the 1967–1970 Civil War. Cooperation between the two countries has also extended to space technology, including the launch of Nigeria’s satellites aboard Russian rockets in 2011.

The planned aviation agreement is expected to form part of broader efforts to deepen bilateral relations and identify further areas of cooperation.

Both countries are expected to begin negotiations through their respective teams, aiming to conclude the process and sign the new agreement in Saint Petersburg in April 2027.