The National Pension Commission (PenCom) has introduced a significant reform in Nigeria’s pension sector with the approval of gold receipts as an eligible investment class for pension funds. This development is expected to enhance portfolio diversification, improve returns, and strengthen the resilience of retirement savings.
Gold receipts are certified financial instruments backed by physical gold and are globally recognized as a hedge against inflation, currency risks, and market volatility. By granting Pension Fund Administrators (PFAs) access to this asset class, PenCom is aligning Nigeria’s pension industry with international best practices while providing a safer and more diversified investment avenue.
Industry experts describe this reform as a strategic step that not only safeguards contributors’ assets but also contributes to the deepening of Nigeria’s financial markets. In addition to strengthening retirement security, this move is expected to stimulate investment in the mining and solid minerals sector, thereby supporting economic growth and job creation.
For pension contributors, the approval offers improved protections against economic shocks and stronger value preservation. PenCom also emphasised that all investments in gold receipts must adhere to stringent standards on transparency, risk management, and valuation. PFAs will operate within defined allocation limits and reporting requirements to ensure funds remain secure.
This initiative forms part of PenCom’s broader agenda to expand pension fund investment opportunities without compromising safety and sustainability. It underscores a forward-looking approach to pension administration in Nigeria, combining innovation with robust safeguards to deliver long-term value for the country’s growing pool of contributors.
