Nigeria’s National Pension Commission (PenCom) has issued a regulatory forbearance allowing Pension Fund Administrators (PFAs) to invest retirement savings in the upcoming Initial Public Offering (IPO) of Dangote Petroleum Refinery & Petrochemicals FZE (DPRP), bypassing standard profitability and dividend track record requirements.
In a circular dated May 13, 2026, the Commission cited the strategic national importance of the project, its expected broad economic benefits, and the strong fundamentals of the refinery and its majority shareholder, Dangote Industries Limited.
Key Provisions of the Circular
The dispensation specifically waives the requirements under Section 6.2.7.1 (iii) of the Revised Regulation on Investment of Pension Fund Assets 2025. This section stipulates that pension fund investments in ordinary shares may only be made if the issuing company has: An operating track record of taxable profits in at least three out of the five years preceding the investment, and Paid dividends or issued bonus shares in at least one of those five years.
By granting this waiver, PenCom has removed these track-record barriers for the Dangote Petroleum Refinery& Petrochemicals FZE IPO, allowing PFAs to participate despite the relatively short operating history of the entity.
This waiver applies exclusively to the Dangote Petroleum Refinery IPO. PenCom emphasized that the approval is a one-off, exceptional measure and “shall not constitute an automatic precedent for future Initial Public Offerings or other investment transactions.” The regulator noted that PFAs wishing to participate must still comply with their internal investment policies, risk management frameworks, and fiduciary responsibilities to contributors and retirees.
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