The National Pension Commission (PenCom) has granted Pension Fund Administrators (PFAs) a special regulatory dispensation to invest pension fund assets in the proposed Initial Public Offering (IPO) of Dangote Petroleum Refinery & Petrochemicals FZE.
In a circular issued on Thursday, PenCom said the decision followed a careful evaluation of the refinery’s strategic importance, economic impact, growth potential and expected benefits to both the pension industry and the wider Nigerian economy.
The Commission explained that the approval provides a one-off regulatory forbearance from Section 6.2.7.1 (iii) of the Revised Regulation on Investment of Pension Fund Assets, specifically waiving the usual requirements relating to existence, profitability and dividend payment history for the purpose of the IPO.
PenCom noted that the decision was also influenced by the track record and reputation of Dangote Industries Limited, the majority shareholder in the refinery project.
According to the Commission, PFAs taking part in the IPO must still comply with their internal investment policies, risk management frameworks and fiduciary obligations to contributors and retirees.
The Commission stressed that the regulatory forbearance is exceptional, strictly case-specific, and applies only to the IPO of Dangote Petroleum Refinery & Petrochemicals FZE. It added that the approval should not be interpreted as a precedent for future IPOs or similar investment transactions.
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