Pension funds now open to FX denominated investments — PenCom

•Directs PFAs to study contributions supra $10,000

By Rosemary Iwunze

As the pension money continues to grow, hitting N24.6 trillion by June 2025, Pension Fund Administrators, PFAs, present person authorisation to put portion of the funds successful overseas currency-denominated instruments.

PenCom besides directed each PFAs and Pension Fund Custodians (PFCs) to study overseas currency pension contributions supra $10,000 to the Nigeria Financial Intelligence Unit (NFIU) wrong 24 hours.

The authorisation became imaginable pursuing the merchandise of the ‘Guidelines connected Foreign Currency Pension Contributions’ by the National Pension Commission, PenCom, yesterday.

It volition beryllium recalled that earlier now, lone Closed Pension Fund Administrators, CPFAs, were allowed to put successful overseas currency-denominated instruments, portion PFAs were barred from it.

However, the caller line establishes the regulatory model for Licensed Pension Fund Operators (LPFOs) to accept, manage, and put overseas currency (FCY) contributions nether the Contributory Pension Scheme (CPS).

According to PenCom, the objectives of the guidelines are to: grow entree to the CPS for Nigerians earning successful overseas currency, including those surviving abroad; supply a unafraid and transparent mechanics for making and managing overseas currency contributions; fortify the concern imaginable of pension funds done diversified currency inflows; arsenic good arsenic guarantee compliance with section regulatory requirements and planetary standards.

The line stated: “Retirement Savings Account, RSA, contributors surviving successful diaspora shall unfastened a Non-Resident Nigerian Ordinary Account (NRNOA), successful enactment with CBN requirements and shall remit pension contributions from their NRNOA to the overseas currency postulation relationship of the PFA with the PFC. RSA contributors nonmigratory successful Nigeria shall unfastened Domiciliary Accounts (DA) with the collecting slope of the Pension Fund Custodian (PFC) appointed by the PFA and shall remit pension contributions from their DA to the overseas currency postulation relationship of the PFA with the PFC. Contributors shall remit pension contributions from their DA to the overseas currency postulation relationship of the PFA with the PFC.

“PFAs shall put overseas currency contributions wrong Nigeria successful enactment with allowable investments acceptable retired by applicable provisions of the Regulation connected Investment of Pension Fund Assets issued by the Commission; investments of overseas currency contributions shall beryllium executed and retained successful overseas currency (USD).”

The station Pension funds present unfastened to FX denominated investments — PenCom appeared archetypal connected Vanguard News.