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The National Pension Commission (PenCom) has granted Pension Fund Administrators (PFAs) a special regulatory waiver allowing them to invest pension assets in the upcoming Initial Public Offering (IPO) of Dangote Petroleum Refinery & Petrochemicals FZE (DPRP).

The waiver, announced in a circular dated May 13, 2026, effectively suspends several investment restrictions, marking a significant shift in PenCom’s stance on equity investments by PFAs.

PenCom clarified that the decision is a one-off exception, issued in light of Dangote Refinery’s economic importance and strong investment fundamentals.

The new policy permits PFAs to invest in the IPO, bypassing the usual requirements for corporate profitability and dividend history that are typically mandatory for PFA investments.

PenCom’s circular emphasized that the regulatory body carefully considered the strategic significance of the Dangote Refinery, which is part of a broader $40 billion expansion project in oil refining, fertiliser production, and other industries.

The Commission also highlighted the refinery’s strong financial backing and the established performance record of Dangote Industries Limited, its majority shareholder.

PenCom acknowledged Dangote Refinery’s role in advancing Nigeria’s oil sector and its potential to drive broader economic growth.

PenCom confirmed that the waiver does not set a precedent for future IPOs but is a specific and singular exception due to the refinery’s large-scale impact on Nigeria’s economy.

The Dangote Refinery IPO is set to open in mid-2026 and will offer approximately 10% of the company’s equity to the public.

This move is part of Dangote Group’s strategy to raise funds for further industrial expansion.

The IPO is expected to be one of the largest public offerings in Africa, with the refinery’s valuation potentially reaching $50 billion (about N70 trillion).

PenCom’s waiver allows institutional investors, including PFAs, to participate in the IPO. However, the Commission issued several safeguards to ensure that PFAs maintain their fiduciary duties and internal risk management processes.

To promote widespread participation in the IPO, Dangote Refinery is leveraging Point-of-Sale (POS) terminals, fintech platforms, and mobile technology, enabling Nigerians globally to buy shares using mobile phones, POS machines, and other digital channels.

With PenCom’s regulatory waiver, PFAs are now able to make early investments in what could be a game-changing offering for both the Nigerian economy and the pension fund sector.