The National Pension Commission (PenCom) has taken a significant step towards strengthening transparency, security, and compliance in non-interest pension products.
On Monday, March 3, 2025, PenCom unveiled the Pension Industry Non-Interest Advisory Committee, which aims to ensure that non-interest pension schemes adhere to global best practices.
According to the Director-General of PenCom, Omolara Oloworaran, “The introduction of Non-Interest Pension Funds (Fund VI) was a groundbreaking step in this direction, as it provides an investment option that is free from interest-based instruments while still ensuring competitive returns for contributors.”
Oloworaran emphasized that the rising demand for non-interest financial products, driven by increased awareness of ethical finance principles, made it necessary to establish a structured advisory framework. “In recent years, the commission has witnessed increasing demand for non-interest financial products, driven by a growing awareness of ethical finance principles and the need for alternative investment avenues.”
The committee will serve as a think tank, providing recommendations on best practices, governance structures, product development, and compliance with non-interest finance principles. As Oloworaran noted, “This is precisely why we have established this Advisory Committee—to serve as a think tank, providing recommendations on best practices, governance structures, product development, and compliance with non-interest finance principles.”
The chairman of the committee, Prof. Adam Abubakar, highlighted the importance of Shariah compliance monitoring in Islamic financial institutions, stating that it plays a crucial role in ensuring compliance, building trust, and enhancing credibility.
The establishment of this advisory committee marks a significant step towards deepening non-interest finance within Nigeria’s pension industry, reflecting PenCom’s commitment to innovation, inclusivity, and sustainability in pension administration.