The Pension Fund Administrators (PFAs) are set to further deepen investment of the pension funds into Sharia-compliant and ethical instruments in a move to explore investment options available under Retirement Savings Fund(RSA) Fund VI.
To expand this investment outlet, the Pension Fund Operators Association of Nigeria (Penop), along with the National Pension Commission (PenCom) recently convened a webinar titled ‘Maximising the Potential of RSA Fund VI: Exploring Sharia-Compliant Investments.’
In his opening remarks at the event, the chief executive officer(CEO) of PenOp, Oguche Agudah, emphasised the importance of expanding the investment options available under RSA Fund VI while calling on pension operators for deeper industry collaboration to address existing challenges and seize opportunities for growth in Sharia-compliant and ethical investments.
Similarly, the chairman of the Pension Industry Non-Interest Advisory Committee (PINAC), Dr. Adam Muhammad Abubakar outlined the current challenges PFAs face in accessing Sharia-compliant instruments, stressing the need for more investment outlets and enhanced awareness about the growth potential of non-interest financial products.
Bil-yaminu Yakubu, who represented the head of Investment supervision of PenCom, Mr. Dahiru Abdulqadir, highlighted the efforts the commission had made to advancing the ethical investment space, stating that, “we understand the challenges PFAs are facing in terms of regulatory clarity. Pencom is committed to providing clear rules that will foster confidence in investing in non-interest instruments, ensuring compliance while driving innovation.”
The session also highlighted how Sharia-compliant investments, particularly, Sukuk bonds, have played a crucial role in raising infrastructure funds.
Attendees argued that expanding the issuance size of such instruments is seen as key to attracting more PFA participation and driving the growth of RSA Fund VI even as they discussed the importance of clear guidelines from PenCom and Securities and Exchange Commission(SEC) to support the growth of non-interest financial instruments.
Treasurer of Alternative Bank, Abimbola Yusuf, who spoke on their transition into a standalone non-interest bank and highlighted upcoming products for Fund VI, stating that, “we are committed to delivering tailored financial services that comply with Islamic finance principles. Our goal is to offer pension fund administrators innovative products that meet both liquidity needs and ethical standards.”
The CEO of Marble Capital, Akeem Oyewale echoed similar sentiments, adding that, “the market for Sharia-compliant investments is growing, and we are developing a robust pipeline of instruments to support PFAs in diversifying their portfolios. Collaboration with issuers is key to ensuring that the size of Sharia-compliant issuances grows, creating more investment opportunities.”
As the demand for non-interest financial products continues to grow,pension fund operators remain committed to ensuring that Sharia-compliant and ethical investments can thrive within Nigeria’s pension framework.
Meanwhile, the newly elected compliance executives of the pension industry have assumed their roles at a critical time, as the sector faces increasing scrutiny and demand for improved operational standards.
The CEO of PenOp, Mr. Oguche Agudah congratulated the new executives while emphasising the vital responsibilities they will now undertake. Under the leadership of the new director general(DG), these roles are expected to play a pivotal part in addressing the industry’s pressing challenges, including fraud, inefficient processes, and ensuring better outcomes for pensioners.
The newly elected executives—Edidiong Akan, Temitope Anjorin, and Tunde Folayan—officially took their oaths of office, pledging to execute their duties with diligence, professionalism, and a focus on the best interests of the industry.
During the ceremony, they reaffirmed their commitment to maintaining the highest ethical standards and fostering harmonious relationships among pension operators.
Their new positions are not only critical for day-to-day regulatory compliance but also vital in steering the industry toward a future where operators adhere to best practices, reduce inefficiencies, and combat fraud as the executives also acknowledged the importance of ethical governance, emphasising that integrity remains the cornerstone of their mandate.
In their remarks, the new compliance executives expressed deep gratitude for the trust placed in them by their peers and reiterated their dedication to advancing the goals of the association, while stressing the importance of collective action in addressing the industry’s challenges.
Plans to formalise the Compliance Forum were announced, with a vision of establishing it as a robust and influential voice within the pension industry.
This forum is expected to serve as a platform for industry-wide collaboration, fostering dialogue among stakeholders to address regulatory gaps and promote best practices.
