• To ensure the integrity of pension fund assets, PenCom has set a list of pre-approved investment vehicles and minimum qualifications for such instruments. Under the PenCom Investment Regulations, the following categories and quality of investment instruments are allowable for investing pension assets in.


Allowable instruments

  • Open/Close-ended/Hybrid Investment Funds,
  • Real Estate Investments through MBS (Mortgage Backed Security) and REITs (Real Estate Investment Trust) registered with SEC (Security & Exchange Commission)
  • Supranational Bonds issued by MDFOs (Multilateral Development Finance Organizations) of which Nigeria is a member,
  • Private Equity and Infrastructure funds registered with SEC (Security & Exchange Commission)
  • Money market instruments of banks and discounted houses as well as commercial papers

Quality of investments

  • Bonds and other allowable debt securities shall have a minimum credit rating of “A” by at least two recognized rating companies,
  • Any bank shall have a minimum credit rating of “BBB” by at least two recognized rating companies,
  • All ratings shall be undertaken by rating companies registered or recognized by SEC (Security & Exchange Commission)