Nigeria pension funds set to tap gold-backed securities
Pension Fund Administrators moved closer to allocating capital into gold-backed instruments after regulators and industry participants discussed implementation frameworks for the asset class during a gathering organized by Lagos Commodities and Futures Exchange in partnership with the National Pension Commission on Saturday in Lagos. The September 2025 update to the Investment of Pension Fund Assets regulation formally authorized gold-backed securities as permissible holdings, with exchange-traded funds and other commodity products identified as mechanisms to increase market liquidity and enhance portfolio diversification for retirement savings managers.
Managing Director Akin Akeredolu-Ale of Lagos Commodities and Futures Exchange stated the amended Section 5.9 creates opportunities for administrators to access instruments listed on recognized platforms while promoting transparency in the commodities sector. PenCom Investment Supervision Department Head Abdulqadir Dahiru emphasized that pension assets constitute the largest source of patient capital in Nigeria, while Securities and Exchange Commission Legal Head John Abutu noted the establishment of a committee to develop derivative trading frameworks and monitor risk management practices across the market.
