PenCom Grants One-Off Approval for PFAs to Back Dangote Refinery IPO

The National Pension Commission has granted Pension Fund Administrators a one-time regulatory dispensation to invest pension assets in the IPO of Dangote Petroleum Refinery & Petrochemicals. A circular from the director of surveillance explains that the commission considered the refinery’s strategic importance, strong fundamentals and economic benefits before waiving usual profitability and dividend requirements. PFAs must still adhere to their internal investment policies, risk management frameworks and fiduciary duties to contributors and retirees. The exemption is strictly limited to this offering and does not set a precedent for future IPOs. Dangote Refinery aims to list a 10% stake on the Nigerian Exchange in a landmark offering valuing the company at up to $50 billion and targeting around $5 billion in proceeds for capacity expansion.

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