The National Pension Commission has unveiled a revised regulation that allows pension funds to gain exposure to gold through tradable Gold Receipts listed on Securities and Exchange Commission-recognized exchanges.
This innovation enables pension fund administrators to invest in gold without the complexities of physical storage, offering a secure and liquid alternative asset class.
According to PenCom, “The review was undertaken in line with PenCom’s strategic objective of diversifying pension fund investments into alternative asset classes, promoting impact investing, and ensuring real returns on investment for enhanced pension benefits to retirees.”
The revised regulation expands the range of permissible instruments to include Reverse Repos, Securities Lending (with full central counterparty guarantees), Private Issuance by Registered Corporate Entities, and Commodity-backed Instruments linked to oil, gold, and agriculture.
Derivatives such as futures, forwards, options, and swaps are now permitted strictly for risk management purposes. To rebalance risk and foster long-term growth, PenCom has adjusted allocation limits across key asset classes.
Plain vanilla Federal Government Securities have been reduced across all funds, with asset-backed instruments offered as offsets. Infrastructure Funds now enjoy increased allocation limits, aligning with PenCom’s strategy to hedge against inflation and promote impact-driven investments.
The regulation also introduces a consolidated framework for non-interest investments and co-investment models, while mandating PFAs and CPFAs to integrate Environmental, Social, and Governance factors into their decision-making processes.
Emphasis is placed on responsible investing, inclusive growth, and long-term allocation to priority sectors that support sustainable national development.
A new cap has also been introduced to limit exposure to any single corporate issuer to 25% across the six funds within the Multi-Fund Structure. The revised regulation signals PenCom’s commitment to evolving Nigeria’s pension system into a globally competitive, resilient, and forward-looking investment vehicle.
This development comes shortly after PenCom unveiled a policy that allows Nigerians living abroad and those earning in foreign currency within Nigeria to save pensions in United States dollars.
The new framework, contained in its Guidelines on Foreign Currency Pension Contributions released in September 2025, marks a significant expansion of the Contributory Pension Scheme and is aimed at deepening participation by the Nigerian diaspora while ensuring transparency, accountability, and compliance with global standards.
