Information key to unlocking Shari’ah-compliant pension potential - PenOp

Information and knowledge sharing has been identified as critical in unlocking the potential in non-interest Shari’ah-compliant investments in pension industry.

According to stakeholders who deliberated in a bid to promote inclusive and ethical investing within the Nigerian pension industry, said expanding awareness among stakeholders will transform the business.

Oguche Agudah, CEO of the Pension Fund Operators Association of Nigeria (PenOp), who spoke during a knowledge session on “Demystifying Non-Interest Shari’ah-Compliant Investments”, organised by PenOp announced that earlier in the year the regulator had inaugurated the Pension Industry Non-Interest Advisory Committee (PINAC).

He emphasized the need for open dialogue between investment professionals and non-interest banking practitioners to close the information gap and encourage wider participation in ethical finance options that avoid usury.

Over the past three years, Fund VI has experienced notable growth, reflecting a rising interest in Shari’ah-compliant retirement options.

Adam M. Abubakar, professor and members of the PINAC Committee emphasized the committee’s role in expanding awareness among pension contributors and aligning investment practices with religious and ethical principles.

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From a regulatory standpoint, Patience Uzoma, who is the unit head, Market Supervision outlined the strategic importance of non-interest funds in offering competitive returns while adhering to Islamic principles.

She reaffirmed that PINAC would help promote transparency and guide the development of globally aligned ethical pension investment products.

The session also featured Onajite Esharegharan, head of Corporate Banking from Taj Bank, who introduced the audience to non-interest banking and its asset-backed, ethical product offerings, such as the Mudaraba Current Account and the forthcoming N20 billion Sukuk.

She explained that Taj Bank’s model ensures profit-sharing, transparency, and buffers to protect investors against market volatility, making it attractive for institutional portfolios like pension funds.

Discussions also addressed key regulatory concerns, risk-sharing mechanisms, and sustainability of returns. Attendees explored questions about fixed income products, the compliance process for pension funds investing in non-interest financial instruments, and the long-term viability of buffers in times of economic uncertainty.

Akinbola Akintola, the head of research and investor relations at PenOp, who moderated key segments of the session, called for a more inclusive conversation across stakeholders in the pension and capital markets. “There’s a significant education gap,” he said. “We must consistently communicate that these funds not only meet compliance standards but also align with deeply held values.”

This session marks another step in expanding Nigeria’s pension investment horizon through faith-aligned, inclusive financial instruments. Stakeholders were encouraged to build on this momentum to ensure that all RSA holders, regardless of belief can secure a dignified retirement in line with their values.

Modestus Anaesoronye

Modestus Anaesoronye is a leading Nigerian financial journalist with over two decades of experience reporting on the insurance and pension sectors across Nigeria and West Africa. He has held key editorial positions at major national media outlets, including The Comet, The Nation, and Financial Standard, and currently serves as a Senior Financial Analyst at BusinessDay Media Ltd. A widely travelled reporter, he has covered industry developments in more than 14 countries across Africa and Asia. Anaesoronye is a multiple award-winning journalist, honoured several times as Insurance Journalist of the Year and Pension Journalist of the Year by recognised industry bodies, including PensionScope and the Pension Fund Operators Association of Nigeria (PenOp), among others.