The National Pension Commission (PenCom) has granted Pension Fund Administrators (PFAs) special approval to invest pension assets in the forthcoming Initial Public Offering (IPO) of Dangote Petroleum Refinery & Petrochemicals FZE, relaxing certain regulatory conditions usually required for such investments.
The approval was conveyed in a circular issued by PenCom and signed by the Director of Surveillance, A.M. Saleem.
According to the circular dated May 13, 2026, the commission said it reached the decision after assessing the strategic and economic significance of the refinery project to both the pension industry and the wider Nigerian economy.
PenCom explained that the approval includes a waiver of some provisions under Section 6.2.7.1 (iii) of the Revised Regulation on Investment of Pension Fund Assets, particularly requirements relating to years of existence, profitability, and dividend history.
“The Commission hereby grants a special dispensation from Section 6.2.7.1 (iii) of the Revised Regulation on Investment of Pension Fund Assets,” the circular stated.
It added that the waiver was granted in recognition of the refinery’s strategic relevance, economic value, and long-term growth prospects, as well as the track record of Dangote Industries Limited, the majority shareholder.
“In reaching its decision, the Commission considered DPRP’s strategic importance, strong fundamentals, wide-ranging economic benefits, and growth potential,” PenCom said.
Despite the approval, the commission directed PFAs to ensure that any investment decisions align with their internal investment guidelines, risk management structures, and fiduciary responsibilities to pension contributors and retirees.
PenCom also stressed that the regulatory concession was exceptional and restricted solely to the Dangote refinery IPO.
“The regulatory forbearance granted under this Circular is exceptional, one-off, and strictly case-specific to the Initial Public Offering of Dangote Petroleum Refinery & Petrochemicals FZE,” the commission stated, adding that the approval should not be interpreted as a precedent for future transactions.
The circular took immediate effect.
President of the Dangote Group, Aliko Dangote, is reportedly targeting a valuation of about $50bn for the refinery ahead of its planned stock market listing later this year.
The 650,000 barrels-per-day refinery has continued to strengthen its position in Nigeria’s downstream petroleum sector amid rising domestic fuel demand and improving global crude oil prices.
Business Hallmark had earlier reported that Dangote was preparing a major cross-border public offering of the refinery, estimated at $20bn, with plans to list shares on multiple African stock exchanges in what could become one of the continent’s largest pan-African IPOs.