PenOp Explores Growth Opportunities for Sharia-Compliant RSA Fund VI Investments

By LOVETH AZODO, Lagos

The Pension Fund Operators Association of Nigeria (PenOp) and the National Pension Commission (PenCom) recently explored the vast potential of Sharia-compliant investments under RSA Fund VI.

The Pension Fund Operators Association of Nigeria (PenOp) recently during a webinar in collaboration with the National Pension Commission (PenCom), focused on maximizing the potential of RSA Fund VI. Titled “Maximizing the Potential of RSA Fund VI: Exploring Sharia-Compliant Investments,” discusssed the expansion of non-interest financial products, particularly within the Contributory Pension Scheme.

The initiative aimed to address the increasing demand for non-interest financial products within the Contributory Pension Scheme and discussed ways to enhance growth and accessibility in this space.

Oguche Agudah, CEO of PenOp, opened the session by emphasizing the importance of expanding investment options under RSA Fund VI.
He called for greater collaboration among industry stakeholders to overcome existing challenges and tap into new opportunities within Sharia-compliant and ethical investments.

Dr. Adam Muhammad Abubakar, Chairman of the Pension Industry Non-Interest Advisory Committee (PINAC), highlighted the difficulties pension fund administrators (PFAs) face when accessing Sharia-compliant instruments. He noted that expanding investment outlets and increasing awareness about non-interest financial products would be crucial for growth.

Bil-yaminu Yakubu, representing PenCom, reaffirmed the Commission’s efforts in advancing ethical investment frameworks. He stated, “PenCom is committed to providing clear regulatory guidelines that will instill confidence in PFAs investing in non-interest instruments, fostering innovation and compliance.”

Discussions during the event underscored the significance of Sharia-compliant investments like Sukuk bonds in raising infrastructure funds. Expanding the issuance size of such instruments was deemed essential to encourage more PFA participation and drive the growth of RSA Fund VI.

Abimbola Yusuf, Treasurer of Alternative Bank, spoke about their transition to a fully non-interest bank and their commitment to developing products tailored for Fund VI. She emphasized that their offerings would meet both liquidity needs and ethical standards, in line with Islamic finance principles.

Akeem Oyewale, CEO of Marble Capital, noted the growing market for Sharia-compliant investments. He outlined their plans to create a robust pipeline of instruments that would support PFAs in diversifying their portfolios, highlighting the importance of collaboration with issuers.

With the rising demand for non-interest financial products, PenOp is dedicated to fostering the growth of RSA Fund VI. The association continues to work closely with regulators and industry players to unlock the full potential of Sharia-compliant investments within Nigeria’s pension framework.