The Pension Fund Operators Association of Nigeria (PenOp) has welcomed the National Pension Commission’s (PenCom) revised investment guidelines, describing them as a game changer that will channel pension assets into critical sectors of the economy while boosting returns for contributors.
Under the new rules, allocations to government securities in Fund I have been cut from 60% to 40%, with room to rise to 50% if linked directly to infrastructure projects. PenCom also introduced bold shifts toward growth sectors: infrastructure funds can now take up 25% of portfolios, private equity 15%, and—for the first time—up to 10% has been set aside for agriculture.
PenOp said the move signals a deliberate departure from overreliance on government debt, with stronger emphasis on productive investments that can accelerate economic growth. Ordinary shares remain at 30%, while money market instruments stay at 30% but now allow up to 7.5% in unlisted entities, creating more room for alternative investments.
A notable addition is the creation of a dollar-denominated pension fund, designed to attract foreign currency contributions and provide a hedge against naira volatility.
PenOp assured contributors that it will continue to work with PenCom and other stakeholders to ensure the reforms are smoothly implemented and that pension funds deliver not just safety and returns, but also wider developmental impact through infrastructure, agriculture, and private sector growth.
