₦airaland Forum

by Olushola Bello


The National Pension Commission has granted Pension Fund Administrators a one-off regulatory forbearance to invest pension assets in the Initial Public Offering of Dangote Petroleum Refinery & Petrochemicals FZE.

The Commission stated this in a Circular signed by the director of the Surveillance Department, A.M. Saleem.

The Circular said, the Commission has carefully evaluated the strategic investment opportunity and economic impact of the proposed Initial Public Offering (IPO) of Dangote Petroleum Refinery & Petrochemicals FZE (DPRP) on the pension industry and the wider economy.

“In light of these considerations, the Commission has reviewed the request for special dispensation permitting Pension Fund Administrators (PFAs) to invest pension fund assets in the IPO.

“In reaching its decision, the Commission considered DPRP’s strategic importance, strong fundamentals, extensive economic benefits, and growth potential. The record of Dangote Industries Limited, the majority shareholder of DPRP, was also taken into account,” the memo said.

“Accordingly, the Commission hereby grants a special dispensation from Section 6.2.7.1 (1) of the Revised Regulation on Investment of Pension Fund Assets. This dispensation waives the applicable existence, profitability, and dividend requirements, without prejudice to other existing regulatory safeguards.

“PFAs are required to ensure that all investments made under this dispensation are in compliance with their internal investment policies, risk management frameworks, and fiduciary duties to contributors and retirees,” it noted.

According to the circular, the regulatory forbearance granted under this Circular is exceptional, one-time, and specifically limited to the Initial Public Offering of Dangote Petroleum Refinery & Petrochemicals FZE. It shall not serve as an automatic precedent for future Initial Public Offerings or other investment transactions.

Dangote Petroleum Refinery is planning a landmark IPO to list a 10 per cent stake on the Nigerian Exchange (NGX), aiming for a valuation of up to $50 billion. The 650,000 bpd refinery, which began production in 2024, seeks to raise approximately $5 billion to expand capacity, with shares available to both local and international investors.

The IPO is expected to be one of the largest in Nigerian history, intended to democratize ownership of the refinery and enhance market liquidity.

Iran2025:
This is criminality. PenCom are criminals they deprived pensioners their money always.

Jayboi:
Nawa o. Everybody wan enter investment opportunity wey sure.

inforesource:
Good move, but make sure the pensioners are not denied their money when needed. One of them were told yesterday that there is no money to pay them now. What a country!

AngelSlay:
How? Kindly explain what you mean

AngelSlay:
Omo it only for those with 5m and above that can get the IPO

“PFAs are required to ensure that all investments made under this dispensation are in compliance with their internal investment policies, risk management frameworks, and fiduciary duties to contributors and retirees,” it noted.

Iran2025:
This is criminality. PenCom are criminals they deprived pensioners their money always.

GreenCovering:
This is stylishly rubbing the Nigerian worker.

Why not allow the contributor to withdraw limited funds from his pension contributions solely for the purpose of purchasing the IPO, so that the money is taken from the funds administrator and immediately credited to Dangote for the purchase of the IPO?

ppogba:
According to.the ignorant analysts like you on Nairaland.

Iran2025:
Two or three pensioners have told me what they are going through in the hands of PenCom. What shocked me was when one them told me that before his retirement, he notify asking them if there's anything that needed to be done to make his funds available? They asked if he has enrolled he said yes. They said ok. Reaching out to them after retirement and they said he came late for his own money. Thank God that the matter is in court right now.

Iran2025:
This is criminality. PenCom are criminals they deprived pensioners their money always.