The National Pension Commission (PenCom) has rolled out new investment guidelines designed to channel pension funds into more productive sectors of the economy, marking a strategic shift away from government debt securities.
The revised framework reduces Fund I’s allocation to government securities from 60% to 40%, with room to rise to 50% if directly tied to infrastructure projects. Investments in ordinary shares remain capped at 30%.
In a bold expansion, PenCom has significantly raised exposure to growth-driving sectors. Infrastructure funds can now take up 25% of portfolios, up from 10%, while allocations to private equity funds have increased from 10% to 15%. For the first time, agriculture has been added as a distinct category, with up to 10% of pension assets eligible for deployment into the sector.
Money market instruments remain at 30%, but with flexibility allowing as much as 7.5% to flow into unlisted or privately listed firms—broadening the scope of investable assets.
Another key innovation is the creation of a dollar-denominated pension fund, enabling contributors to invest in foreign currency and providing a hedge against exchange rate risks.
PenCom said the reforms are aimed at unlocking long-term capital for national development while ensuring stronger returns for retirees. The Pension Fund Operators Association of Nigeria (PenOp) pledged to work with stakeholders to ensure smooth implementation and to maximize the developmental impact of the changes.
