…charge members on transparency
The Director-General of the National Pension Commission (PenCom), Omolara Oloworaran, has inaugurated the Pension Industry Non-Interest Advisory Committee (PINAC), tasking it with ensuring that non-interest pension products remain transparent, secure, and aligned with global best practices.
Speaking at the inauguration in Abuja, Oloworaran reaffirmed PenCom’s commitment to fostering innovation, inclusivity, and sustainability in pension administration.
She emphasized that the establishment of PINAC underscores the commission’s dedication to ensuring the Contributory Pension Scheme (CPS) serves all segments of society, including individuals seeking financial solutions that align with their ethical and religious beliefs.
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She further highlighted that the initiative would enhance financial inclusion and expand the reach of non-interest pension products within Nigeria’s pension industry.
She said, “The introduction of Non-Interest Pension Funds (Fund VI) was a groundbreaking step in this direction, as it provides an investment option that is free from interest-based instruments while still ensuring competitive returns for contributors. The Rationale for the Non-Interest Advisory Committee is clear, In recent years, the commission has witnessed increasing demand for non-interest financial products, driven by a growing awareness of ethical finance principles and the need for alternative investment avenues.
“However, the development of this segment requires structured guidance, expert insights, and collaborative strategies to navigate regulatory, operational, and market challenges. This is precisely why we have established this Advisory Committee—to serve as a think tank, providing recommendations on best practices, governance structures, product development, and compliance with non-interest finance principles”.
The Chairman of the committee, Prof. Adam Abubakar highlights the importance of shariah compliance monitoring system in Islamic financial institutions, stating that it cannot be overrated, it plays a vital role in ensuring compliance, building trust and enhancing credibility and reputation in the overall operations.