The National Pension Commission (PenCom) has unveiled a revised regulation that allows pension funds to gain exposure to gold through tradable Gold Receipts listed on Securities and Exchange Commission (SEC)-recognised exchanges.
This innovation enables pension fund administrators (PFAs) to invest in gold without the complexities of physical storage, offering a secure and liquid alternative asset class.
Gold Receipts are part of a broader suite of instruments introduced under PenCom’s updated investment guidelines aimed at enhancing diversification, boosting returns, and minimizing concentration risks.
“The review was undertaken in line with PenCom’s strategic objective of diversifying pension fund investments into alternative asset classes, promoting impact investing, and ensuring real returns on investment for enhanced pension benefits to retirees,” the Commission stated via its official X handle.
The revised regulation expands the range of permissible instruments to include Reverse Repos, Securities Lending (with full central counterparty guarantees), Private Issuance by Registered Corporate Entities, and Commodity-backed Instruments linked to oil, gold, and agriculture.
Derivatives such as futures, forwards, options, and swaps are now permitted strictly for risk management purposes.
To rebalance risk and foster long-term growth, PenCom has adjusted allocation limits across key asset classes.
Plain vanilla Federal Government Securities have been reduced across all funds, with asset-backed instruments offered as offsets. Infrastructure Funds now enjoy increased allocation limits, aligning with PenCom’s strategy to hedge against inflation and promote impact-driven investments.
The regulation also introduces a consolidated framework for non-interest investments and co-investment models, while mandating PFAs and CPFAs to integrate Environmental, Social, and Governance (ESG) factors into their decision-making processes. Emphasis is placed on responsible investing, inclusive growth, and long-term allocation to priority sectors that support sustainable national development.
PenCom further clarified definitions within the regulatory framework, including refinements to the Ethical Fund category, to ensure transparency and consistency across the pension industry.
A new cap has also been introduced to limit exposure to any single corporate issuer to 25% across the six funds within the Multi-Fund Structure.
The revised regulation signals PenCom’s commitment to evolving Nigeria’s pension system into a globally competitive, resilient, and forward-looking investment vehicle—one that empowers retirees while supporting national economic growth.
The development is coming shortly after PenCom unveiled a policy that allows Nigerians living abroad and those earning in foreign currency within Nigeria to save pensions in United States dollars.