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

The approval was conveyed in a circular dated May 13, 2026, in which PenCom temporarily relaxed some of the strict investment conditions that usually govern pension fund investments in equities.

The commission described the approval as a one-off regulatory exception granted because of the strategic importance of the Dangote Refinery project to Nigeria’s economy.

Under existing pension investment regulations, PFAs are generally prohibited from investing in companies without an established profitability and dividend payment history.

However, PenCom said the scale of the refinery, its financial structure and expected economic impact justified the special dispensation.

“The Commission has 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,” the circular stated.

PenCom explained that the decision followed requests seeking special approval for PFAs to participate in the IPO using pension assets.

The commission noted that the refinery is part of a broader $40bn industrial expansion covering oil refining, fertiliser production and other related industries.

It also cited the strong financial backing of Dangote Industries Limited, the majority shareholder in the refinery, as one of the factors considered before granting the waiver.

According to PenCom, the refinery is expected to play a major role in reducing Nigeria’s dependence on imported fuel products, strengthening the downstream oil sector and stimulating economic growth.

Despite the approval, the commission stressed that the waiver would not automatically apply to future IPOs.

PenCom described the approval as a “specific and singular exception” granted because of the refinery’s unique national economic significance.

The Dangote Refinery IPO is expected to open in mid-2026, with about 10 per cent of the company’s equity projected to be offered to the investing public.