Photo caption: A view of the newly-commissioned Dangote petroleum refinery is pictured in Ibeju-Lekki, Lagos, Nigeria May 22, 2023. REUTERS/Temilade Adelaja Purchase Licensing Rights
Nigeria’s pensions regulator has given fund managers a special waiver to invest in the planned initial public offering of Dangote Petroleum Refinery, in an unusual policy shift aimed at backing a key national asset.
Reuters reported that the National Pension Commission said it would suspend standard eligibility criteria such as profitability and a dividend track record that typically govern how pension funds allocate assets, a May 13 circular said.
The move is part of a broader push to channel long-term domestic capital into large industrial projects seen as vital for growth and energy security.
PenCom said the decision followed a review of the refinery’s “strategic importance” and “strong fundamentals,” as well as the track record of parent company, Dangote Group.
Under the waiver, fund administrators may invest in the IPO but must still adhere to internal guidelines, risk controls and fiduciary duties to contributors and retirees.
The regulator said the forbearance was “exceptional, one-off and strictly case-specific,” and would not extend automatically to future offerings.
The refinery, Africa’s largest and owned by billionaire Aliko Dangote, has helped end Nigeria’s reliance on fuel imports.
PenCom said the directive took immediate effect.
