…Rolls out free healthcare plan for 30,000 low-income retirees
By Favour Pius
The National Pension Commission (PenCom) has approved the investment of pension assets in the proposed Initial Public Offering (IPO) of the $20 billion Dangote Petroleum Refinery and Petrochemicals FZE, opening the door for Pension Fund Administrators (PFAs) to participate in one of Africa’s biggest industrial projects.
The decision effectively grants PFAs access to part of Nigeria’s N29.5 trillion pension assets for investment in the refinery, marking one of the most significant regulatory adjustments in the pension industry in recent years.
PenCom, in a circular displaying on its website, described the approval as a “specific and singular exception” to existing investment regulations because of the refinery’s strategic importance to the Nigerian economy.
Under current pension investment guidelines, PFAs are generally prohibited from investing contributors’ funds in companies without proven history of profitability and dividend payments.
However, the commission said the refinery’s scale, financial structure and expected economic impact justified the waiver.
“The commission has carefully evaluated the strategic investment opportunity and the economic impact of the proposed Initial Public Offering (IPO) of Dangote Peroleum Refi nery and Petrochemical on the pension industry and the wider economy,” PenCom stated.
Owned by Aliko Dangote through Dangote industries Limited, the refinery is Africa’s largest single train refinery facility with the capacity to process 650,000 barrels of crude oil daily.
Industry analysts decribed the move as a bold attempt to channel long-term domestic capital into strategic infrastructure and industrial development.
Economist and capital market analyst, Johnson Chukwu, said the approval reflects growing regulatory confidence in infrastructure-backed investments capable of of generating sustainable long-term returns.
According to him, pension funds globally are increasingly invested infrastructure and industrial assets because such projects align with the long-term nature of retirement savings.
He noted that allowing PFAs to participate in the refinery IPO could diversify investment portfolios while supporting industrialization, job creation and broader economic growth.
Meanwhile, PenCom has unveiled a free healthcare initiative for retirees under the Contributory Pension Scheme(CPS), in what analysts described as a significant expansion of the commission’s social protection role.
The programme, kow as PenCare, is targeted at pensioners earning monthly pensions of N70,000 and below and is expected to provide comprehensive healthcare coverage for about 30,000 retirees in its pilot phase.
According to the commission, beneficiaries must be at least 60 years old and currently receiving pensions through their PFAs.
The commission said registration for the healthcare intervention is ongoing on a first-come, first served basis through its official portal and the websites of PFAs.
PenCom explained that the initiative was introduced to improve healthcare access and reduce the burden of rising medical costs on vulnerable retirees.
A pension industry analyst in Lagos noted that while the refinery IPO approval underscores PenCom’s growing role in supporting strategic economic challenges confronting pensioners amid inflation and rising healthcare expenses..
PenCom reiterated its commitment to protecting contributors’ funds while promoting initiatives aimed at improving the welfare and quality of life of retirees.
