The Nationwide Pension Fee (PenCom) has unveiled a revised regulation that enables pension funds to realize publicity to gold by tradable Gold Receipts listed on Securities and Change Fee (SEC)-recognised exchanges.
This innovation permits pension fund directors (PFAs) to spend money on gold with out the complexities of bodily storage, providing a safe and liquid different asset class.
Gold Receipts are a part of a broader suite of devices launched underneath PenCom’s up to date funding tips geared toward enhancing diversification, boosting returns, and minimizing focus dangers.
“The evaluation was undertaken consistent with PenCom’s strategic goal of diversifying pension fund investments into different asset courses, selling impression investing, and guaranteeing actual returns on funding for enhanced pension advantages to retirees,” the Fee said through its official X deal with.
New Devices and Strategic Changes
The revised regulation expands the vary of permissible devices to incorporate Reverse Repos, Securities Lending (with full central counterparty ensures), Non-public Issuance by Registered Company Entities, and Commodity-backed Devices linked to grease, gold, and agriculture.
Derivatives reminiscent of futures, forwards, choices, and swaps at the moment are permitted strictly for danger administration functions.
To rebalance danger and foster long-term progress, PenCom has adjusted allocation limits throughout key asset courses.
Plain vanilla Federal Authorities Securities have been lowered throughout all funds, with asset-backed devices supplied as offsets. Infrastructure Funds now take pleasure in elevated allocation limits, aligning with PenCom’s technique to hedge in opposition to inflation and promote impact-driven investments.
Governance, ESG, and Moral Readability
The regulation additionally introduces a consolidated framework for non-interest investments and co-investment fashions, whereas mandating PFAs and CPFAs to combine Environmental, Social, and Governance (ESG) elements into their decision-making processes. Emphasis is positioned on accountable investing, inclusive progress, and long-term allocation to precedence sectors that assist sustainable nationwide improvement.
PenCom additional clarified definitions throughout the regulatory framework, together with refinements to the Moral Fund class, to make sure transparency and consistency throughout the pension trade.
A brand new cap has additionally been launched to restrict publicity to any single company issuer to 25% throughout the six funds throughout the Multi-Fund Construction.
The revised regulation alerts PenCom’s dedication to evolving Nigeria’s pension system right into a globally aggressive, resilient, and forward-looking funding automobile—one which empowers retirees whereas supporting nationwide financial progress.
What You Ought to Know
The event is coming shortly after PenCom unveiled a coverage that enables Nigerians residing overseas and people incomes in overseas forex inside Nigeria to avoid wasting pensions in United States {dollars}.
- The brand new framework, contained in its Pointers on International Forex Pension Contributions launched in September 2025, marks a big enlargement of the Contributory Pension Scheme (CPS) and is geared toward deepening participation by the Nigerian diaspora whereas guaranteeing transparency, accountability, and compliance with world requirements.
- In response to PenCom, the reform was issued underneath the powers of the Pension Reform Act (PRA) 2014. It offers Licensed Pension Fund Operators (LPFOs) the authority to simply accept, handle, and make investments overseas forex contributions whereas safeguarding contributors’ funds by strict operational and governance necessities.
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