Pension funds to begin investments in gold-backed securities

Pension Fund Administrators (PFAs) at the weekend got closer to investing in gold-backed securities as regulators and operators in the pension and commodities ecosystem deepened conversation on activation of the new asset segment.

At a strategic engagement session hosted by Lagos Commodities and Futures Exchange (LCFE), in collaboration with the National Pension Commission (PenCom) at the weekend in Lagos, experts explored strategies for expanding investment opportunities in gold-backed securities through Nigeria’s commodities exchanges.

The event followed revision of Regulation on Investment of Pension Fund Assets, issued by PENCOM in September 2025, which now formally includes gold-backed instruments among approved pension fund investment options.

Experts said the revised regulatory milestone marked significant step in deepening capital market participation and fostering sustainable economic growth in Nigeria.

Experts, who discussed implications of the revised regulations and practical strategies for leveraging them, highlighted gold-backed Exchange-Traded Funds (ETFs) and other regulated commodities instruments as key tools to boost pension fund participation, strengthen market liquidity, and promote transparency and good governance across the commodities ecosystem.Managing Director, Lagos Commodities and Futures Exchange (LCFE), Akin Akeredolu-Ale, said the revision of Section 5.9 of the PENCOM Investment Regulation has opened transformative pathways for PFAs to invest in gold-backed ETFs and other regulated commodities instruments listed on recognized exchanges such as LCFE.“This progressive development aligns perfectly with our mission to unlock new investment opportunities that connect long-term funds to Nigeria’s real sector — while promoting transparency, value creation, and financial innovation,” Akeredolu-Ale said.Head, Investment Supervision Department, National Pension Commission (PenCom), Abdulqadir Dahiru, said the strategic collaboration between LCFE and PENCOM underscored PENCOM’s commitment to driving innovation and plays a critical role in deepening Nigeria’s investment markets while creating new opportunities for pension fund growth.“Pension funds represent the largest single pool of patient capital in Nigeria, and our revised regulation, which now recognizes gold-backed instruments as eligible for pension fund investment, underscores the Commission’s confidence in the emerging commodities market framework,” Dahiru, who represented PENCOM’s Director General, said.

Head, Legal, Securities and Exchange Commission (SEC), John Abutu, who represented SEC’s Director-General, Dr. Emomotimi Agama, highlighted SEC’s role as a proactive and innovative regulator.

He noted that the Commission has established a dedicated committee to oversee derivative trading in the Nigerian capital market, develop regulatory frameworks, ensure market integrity, monitor risk management practices, and foster investor confidence to support the growth of Nigeria’s derivatives and commodities markets.

Panelists including Gbenga Awe, Acting Chairman of Commodities Tradenet Limited, and Akinbola Akintola, Head of Investment and Research, Pension Operators of Nigeria, spoke extensively on the potential and strategies for gold-backed securities as a vehicle for portfolio diversification and long-term wealth creation.The forum underscored the growing synergy between Nigeria’s pension industry and commodities market, reinforcing the role of gold-backed investments as a stable and profitable asset class for institutional investors.

Pension funds to begin investments in gold-backed securities - The Nation Newspaper