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Tag: Pension Fund Administrators (PFAs)

  • Pension funds to begin investments in gold-backed securities

    Pension funds to begin investments in gold-backed securities

    Pension Fund Administrators (PFAs) at the weekend got closer to investing in gold-backed securities as regulators and operators in the pension and commodities ecosystem deepened conversation on activation of the new asset segment.

    At a strategic engagement session hosted by Lagos Commodities and Futures Exchange (LCFE), in collaboration with the National Pension Commission (PenCom) at the weekend in Lagos, experts explored strategies for expanding investment opportunities in gold-backed securities through Nigeria’s commodities exchanges.

    The event followed revision of Regulation on Investment of Pension Fund Assets, issued by PENCOM in September 2025, which now formally includes gold-backed instruments among approved pension fund investment options.

    Experts said the revised regulatory milestone marked significant step in deepening capital market participation and fostering sustainable economic growth in Nigeria.

    Experts, who discussed implications of the revised regulations and practical strategies for leveraging them, highlighted gold-backed Exchange-Traded Funds (ETFs) and other regulated commodities instruments as key tools to boost pension fund participation, strengthen market liquidity, and promote transparency and good governance across the commodities ecosystem.

    Managing Director, Lagos Commodities and Futures Exchange (LCFE), Akin Akeredolu-Ale, said the revision of Section 5.9 of the PENCOM Investment Regulation has opened transformative pathways for PFAs to invest in gold-backed ETFs and other regulated commodities instruments listed on recognized exchanges such as LCFE.

    “This progressive development aligns perfectly with our mission to unlock new investment opportunities that connect long-term funds to Nigeria’s real sector — while promoting transparency, value creation, and financial innovation,” Akeredolu-Ale said.

    Head, Investment Supervision Department, National Pension Commission (PenCom), Abdulqadir Dahiru, said the strategic collaboration between LCFE and PENCOM underscored PENCOM’s commitment to driving innovation and plays a critical role in deepening Nigeria’s investment markets while creating new opportunities for pension fund growth.

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    “Pension funds represent the largest single pool of patient capital in Nigeria, and our revised regulation, which now recognizes gold-backed instruments as eligible for pension fund investment, underscores the Commission’s confidence in the emerging commodities market framework,” Dahiru, who represented PENCOM’s Director General, said.

    Head, Legal, Securities and Exchange Commission (SEC), John Abutu, who represented SEC’s Director-General, Dr. Emomotimi Agama, highlighted SEC’s role as a proactive and innovative regulator.

    He noted that the Commission has established a dedicated committee to oversee derivative trading in the Nigerian capital market, develop regulatory frameworks, ensure market integrity, monitor risk management practices, and foster investor confidence to support the growth of Nigeria’s derivatives and commodities markets.

    Panelists including Gbenga Awe, Acting Chairman of Commodities Tradenet Limited, and Akinbola Akintola, Head of Investment and Research, Pension Operators of Nigeria, spoke extensively on the potential and strategies for gold-backed securities as a vehicle for portfolio diversification and long-term wealth creation.

    The forum underscored the growing synergy between Nigeria’s pension industry and commodities market, reinforcing the role of gold-backed investments as a stable and profitable asset class for institutional investors.

  • PFAs pays retirees N68.1b in Q3

    Pension Fund Administrators (PFAs) have paid N68.17 billion lump sum to retirees as at Third Quarter, 2018, a report by the National Pension Commission (PenCom) has shown.

    In the report titled, PenCom Third Quarter, 2018, the commission said a total of N3 billion was paid in the period under review.

    The commission disclosed that it approved a total of 2,831 applications for retirement under life annuity during the quarter.

    This, it stated, brings the total number of retirees receiving their retirement benefits through the annuity plan to 57,302.

    The commission also said the 2,831 retirees received N1.7 billion as lump sum payment and paid premium of N16.04 billion to insurance companies.

    Meanwhile, the total number of retirees currently receiving their pensions under the Programmed Withdrawal (PW) contracts increased by 3.49 percent from 185,092 in the previous quarter to 191,556 in the third quarter of 2018.

    A  sectorial breakdown shows that 66.01 percent of those that received pension under the PW were from the public sector while retirees from the private sector accounted for the remaining 33.99 per cent.

    During the quarter under review, the sum of N15.23 billion was paid to 6,464 retirees as lump sum and N367 million as monthly programmed withdrawals.

  • LASPEC urges NAICOM, PenCom to eliminate hindrances to insurance

    LASPEC urges NAICOM, PenCom to eliminate hindrances to insurance

    The Lagos State Pension Commission (LASPEC) has urged the National Insurance Commission ( NAICOM ) and National Pension Commission (PenCom) to eliminate practices militating against the growth of the industry.

    Director-General of LASPEC, Mrs Folashade Onanuga made the call at the ongoing Insurance and Pension Conference organised by National Association of Insurance and Pension Correspondents (NAIPCO) in Lagos on Thursday.

    She said that eliminating the challenges would bring sanity to the industry and attract more Nigerians into the insurance net.

    The D-G said the theme of the conference: Legislation of Pensions and Insurance, Intrigues, Interest, Governance and the People’ would enable experts suggest solutions to enhance the sectors’ contributions to economic growth.

    According to her, annuity providers need to know how to do legitimate business while marketing a product and not behaving like fraudsters.

    “Some insurance agents now stand by the roadside as if they are waiting for a prey, unfortunately, there are too many  frauds in the system.

    “The competition between life insurers and Pension Fund Administrators (PFAs) needed to be healthier otherwise the ultimate consumers will lose confidence in them.

    “Such competition contravene the transparency the 2004 Pension Reform Act (PRA) advocated for as human thinking will suggest that the fighting is to gain market share.

    “This means the product is more to the benefit of the operator more than consumers,’’ she said.

    The LASPEC boss expressed dismay that some life insurance companies invited retirees to programme using the name LASPEC.

    “Sometimes, agents will pose as relatives of retirees to programmes to exit discussion between retirees and PFAs,’’ she said.

    The Commissioner for Insurance (CFI), Alhaji Mohammed Kari, said that the commission had widened its regulatory and supervisory roles on insurance entities.

    Kari, represented by Mr Pius Popoola, the Head of Authorisation and Policy, said the roles were aimed at building the confidence of policy holders.

    The commissioner said the roles would also eradicate abominable ethics and promote the safety and soundness of the insurance industry.

    He said that the commission would work closely with the industry and other stakeholders, especially co-regulators in the financial services sector.

    “This would promote a healthy insurance industry within the existing legislation,’’ he said

    NAN

  • PenCom set to open transfer window – Mele

    The National Pension Commission (PenCom), has concluded arrangements for the opening of transfer window to customers.

    Mr Adamu Mele, Executive Director, Operations and Services, Premium Pension Limited, made the disclosure in an interview with the News Agency of Nigeria (NAN), in Abuja on Wednesday.

    According to him, there are several institutions handling the identities of Nigerians. “These institutions have to be harmonised to have a centralised data to guard against having multiple identifications.

    “It is going to be very difficult to really move people around in terms of their choices because we are talking of life savings here.

    “ Pension fund management is a very delicate business; you cannot work for 30 or 35 years and then wake up one day and find that you have lost your money.

    “So, we have been very careful with the system that we put in place.

    “We have had to ensure that right structures are in place to enable us adhere strictly to the guidelines laid out by PenCom with regard to the movement of customers across the Pension Fund Administrators (PFAs).

    “We are waiting to see what would happen soon. I don’t think it would take long before the transfer window opens’’, Mele said.

    He said that harmonised institution and a centralised data for identification of Nigerians would make it easy to determine a person’s biometric and know actually if he was the one being identified.

    He noted that PenCom was working round the clock to ensure a hitch-fee movement, adding that there are more than seven million people in the data base of the Contributory Pension Scheme.

    Mele added that the pension industry had generated close to N6.5 trillion, noting that the fund could be deployed to many areas in the economy to fast-track economic development in the country “following well-laid-out PenCom guidelines in this regard.’’

    The executive director also urged all the agencies and departments of the states and local governments, as well as corporate companies who had not joined the scheme to do so.

    According to him, the scheme remains the most rewarding and workable means of safeguarding the future of Nigerian workers.

  • N54bn pension arrears will boost economic activities – Experts

    Some experts have commended the Federal Government for releasing N54 billion pension arrears, saying it would boost demand for goods and services in the county.

    They told the News Agency of Nigeria (NAN) in interviews on Friday in Lagos that the funds would stimulate economic activities.

    NAN reports that the National Pension Commission (PenCom) is expected to disburse the fund to Pension Fund Administrators (PFAs) for onward payment to retirees.

    Mallam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., a PFA operator, said the release of the funds would boost economic activities through various investments.

    Kurfi, who commended the Federal Government for settling the arrears, saying that part of the funds would find their ways into the bond market, equities market and money market instruments.

    “The development is a good thing because we have many outstanding funds with PenCom; the release of the funds will go a long way in revitalising the economy,’’ he said.

    Kurfi said that PFAs, in line with their mandate to divert part of the money to investable incomes, would invest some of it in the market.

    He called on the government to avoid delays in paying pensioners, noting that some of the beneficiaries could have died before the release of the funds.

    “Pensioners should be paid as and when due for individuals to benefit from it and at the same time to kick-start economic activities”.

    Dr Uche Uwaleke, Head of Banking and Finance Department, Nasarawa State University, said that the issue of pension arrears had always been a knotty one for the Federal Government.

    Uwaleke told NAN that state governments were equally facing the same challenge which, in most cases, were due to under-appropriation or shortfalls in projected revenue.

    He said that governments’ inability to settle salaries and pension obligations contributed significantly to the current economic recession.

    “If fund for the pension arrears is released now, it will go a long way in boosting demand for goods and services as well as stimulating the economy, thereby hastening the recovery process,’’ Uwaleke said.

    He said that adequate provisions should be made in the annual budget to avoid arrears, especially now that the contributory pension scheme is in place.

    “Government at all levels, when rationing available revenue, should accord priority to the payment of workers’ salaries and pensions of retirees.”

    Reports have it that the Federal Government, on April 6, said it had cleared inherited arrears of accrued pension benefits for 2014, 2015 and 2016 by releasing N41.5 billion and N12.5 billion for January, February and March this year.

    Mrs Kemi Adeosun, the Minister of Finance, confirmed the release of the money in a statement signed by the Director of Information in the ministry, Salisu Dambatta.

    She said the government was concerned about the plight of pensioners who retired under the Contributory Pension Scheme without being paid.

    “Despite conflicting demands for available cash, President Muhammadu Buhari has always expressed concern about the plight of workers and pensioners.

    “Consistent with this, we have released N41.5 billion, which clears the arrears inherited from the previous administration from 2013 to 2015 and underpayments in 2016.

    “This will bring relief to thousands of our elders who have served and deserve to be paid their entitlements promptly and fully.

    “The amount we paid includes arrears and the impact is that those who retired as far back as 2013, who had been unable to access pension under the contributory scheme due to non-payment, will now be paid.”

    The minister said that henceforth, the monthly allocation to PenCom, based on the 2017 appropriation, would be paid regularly along with the monthly salaries of ministries, departments and agencies of the Federal Government.