Pencom gives PFA approval to invest in Dangote Refinery’s IPO

National Pension Commission (PenCom) has granted approval to Pension Fund Administrators (PFAs) to invest in the Initial Public Offering (IPO) of Dangote Refinery.

The approval is contained to in a circular issued by Pencom to the PFAs dated May 13, 2026.

PenCom described the approval as a one-off waiver in recognition of the strategic importance of the Dangote Refinery to Nigeria’s economy and the strong investment fundamentals underpinning the project.

PFAs are restricted from investing in companies without a proven profitability and dividend payment history.

The commission, however, said the refinery’s scale, financial structure and economic significance justified the special consideration.

It also said the decision followed extensive consideration of the refinery’s expected impact on the pension industry and the broader economy.

Pencom said it also acknowledged the refinery’s strategic role in transforming Nigeria’s downstream oil sector, reducing fuel import dependence and stimulating economic growth.

It said that in granting the approval, it had carefully evaluated the strategic investment opportunity and the economic impact of the proposed Initial Public Offering (IPO) of Dangote Petroleum Refinery & Petrochemicals on the pension industry and the wider economy.”