Victor EzejaThe National Pension Commission (PenCom) has established the Pension Industry Non-Interest Advisory Committee to improve transparency, security and compliance with non-interest pension products.
Director-General of PenCom, Omolara Oloworaran, stated at the inauguration in Abuja on Monday that the move is consistent with the commission’s commitment to innovation, inclusivity and sustainability in pension administration.
Join our WhatsApp ChannelShe stressed that the formation of the advisory committee demonstrates PenCom’s commitment to financial inclusion by expanding the reach of non-interest pension products in the industry.
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 stated.
She clarified that increased awareness of ethical finance principles and the resulting demand for non-interest financial products necessitated the creation of a structured advisory framework to direct market, operational, and regulatory developments.
The PenCom DG, however, pointed out that “structured guidance, expert insights, and collaborative strategies to navigate regulatory, operational, and market challenges” are necessary for the growth of this area of pension service.
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“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,” she added.
Prof Adam Abubakar, Chairman of the committee, emphasised the importance of a Shariah compliance monitoring system in Islamic financial institutions, adding that it is critical for assuring compliance, developing confidence, and improving credibility in the industry.
He emphasised that regulatory control is vital to preserving investor trust and ensuring that non-interest pension solutions adhere to ethical and religious financial standards.
The formation of the advisory group is a strategic move towards strengthening non-interest finance in Nigeria’s pension market, reflecting PenCom’s long-term aim for a more inclusive and diverse pension system.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
