The National Pension Commission (PenCom) has granted a special dispensation that would permit Pension Fund Administrators (PFAs) to invest pension fund assets in the Initial Public Offering (IPO) of Dangote Petroleum Refinery & Petrochemicals FZE (DPRP).
PenCom said the decision follows careful evaluation of the strategic investment opportunity and the economic impact the IPO would have on the pension industry and the wider economy.
In a circular number: PenCom/lNSP/Surv/2026/98 issued to all the PFAs by the Director, Surveillance Department, A. M. Saleem, the regulator said in reaching the decision, it also considered DPRP’s strategic importance, strong fundamentals, and wide-ranging economic benefits, and the growth potential, in addition to the record of Dangote Industries Limited, DPRP’s majority shareholder.
Consequently, granted a special dispensation from Section 6.2.7.1 (iii) of the Revised Regulation on Investment of Pension Fund Assets, including waiving the applicable existence, profitability, and dividend requirements without prejudice to other extant regulatory safeguards.
PenCom said the PFAs are required to ensure that all investments made under this dispensation are undertaken in line with their internal investment policies, risk management frameworks, and fiduciary duties to contributors and retirees.
It noted that the regulatory forbearance granted under the Circular was exceptional, one-off, and strictly case-specific to the Initial Public Offering of Dangote Petroleum Refinery & Petrochemicals FZE. Adding that it shall not constitute an automatic precedent for future Initial Public Offerings or other investment transactions.
While declaring that the Circular takes immediate effect, the regulator advised that all enquiries regarding the circular should be directed to the undersigned.
