Bank Groups emerge as new outlet for pension fund investments

Bank holding companies are emerging as a new pressure valve for Nigeria’s pension industry after the National Pension Commission opened a tightly controlled window for pension fund administrators to invest in parent companies of pension custodians.
The move is designed to widen the pool of investable instruments at a time when pension assets are growing faster than the supply of high-quality domestic securities, while still preserving strict safeguards around related-party exposure.
According to an economic note from Coronation Research, under the new framework, PenCom is not relaxing investment discipline. Instead, it is allowing PFAs to participate only under conditions that are m...