In a move to expand ethical investment options in Nigeria’s pension sector, the National Pension Commission (PenCom) has inaugurated the Pension Industry Non-Interest Advisory Committee (PINAC).
Moreover, the initiative aims to strengthen non-interest pension funds, ensuring they align with global best practices.
Speaking at the inauguration event in Abuja, PenCom’s Director-General, Omolola Oloworaran, emphasised the growing demand for ethical finance.
Afterwards, she urged the industry to expand pension offerings that align with non-interest principles.
Moving forward, she described Fund VI – Nigeria’s first non-interest pension fund – as a groundbreaking initiative but insisted that its growth depends on structured guidance and strategic collaboration
“PINAC will deliver expert recommendations on governance, product development, and best practices to ensure compliance with non-interest finance principles, she stated.
Key Areas Of Focus
The committee is mandated to focus on four key areas: Ensuring transparency in non-interest pension products. increasing public awareness through education campaigns, developing sustainable investment strategies and fostering collaboration with regulatory bodies and financial institutions.
Meanwhile, PINAC Chairman, Muhammad Muazu Lere, underscored the role of Shari’ah governance in maintaining trust and credibility.
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Furthermore, he identified low public awareness of Fund VI as a major challenge.
Now, he wants PenCom to intensify education campaigns to bridge this gap.
Also, to align with global best practices, PINAC will actively engage key regulators, including the CBN, SEC, and NAICOM.
Ultimately, this initiative aims to boost financial inclusion, attract new contributors to the pension system, and establish Nigeria as a leader in ethical pension fund management.
