PenCom Grants Special Waiver for Pension Funds to Buy Dangote Refinery Shares

Nigeria’s National Pension Commission, National Pension Commission, has approved a special regulatory waiver allowing Pension Fund Administrators (PFAs) to invest pension assets in the planned public offer of the Dangote Petroleum Refinery & Petrochemicals, a move expected to deepen local institutional participation in one of Africa’s biggest anticipated IPOs.

The approval, contained in a circular dated May 13, 2026 and signed by the Director of Surveillance, A.M. Saleem, grants PFAs a one-off dispensation from some existing investment rules under the Revised Regulation on Investment of Pension Fund Assets.

Under the waiver, pension fund managers will be permitted to invest in the refinery’s proposed Initial Public Offering (IPO) despite the company not fully meeting certain conventional eligibility requirements such as profitability history, years of operation, and dividend payment record.

PenCom said the decision followed an assessment of the refinery’s strategic importance, growth potential, and expected economic impact on both Nigeria’s economy and the pension industry. The regulator also cited the track record of Dangote Industries Limited, the refinery’s majority shareholder, as a key consideration.

Despite the approval, the commission stressed that PFAs must still comply with internal investment policies, fiduciary responsibilities, and risk management frameworks in handling contributors’ funds.

PenCom further clarified that the waiver is strictly limited to the Dangote Refinery IPO and should not be treated as a precedent for future investment transactions or public offers.

The development is expected to boost investor confidence ahead of the refinery’s planned listing, which analysts believe could become one of the largest public offerings in Nigeria’s capital market history. The refinery, owned by billionaire industrialist Aliko Dangote, is regarded as a major strategic asset capable of reducing Nigeria’s dependence on imported fuel and strengthening local refining capacity.