LCFE, PenCom explore strategies for pension fund investments in gold-backed securities
The Lagos Commodities and Futures Exchange (LCFE), in collaboration with the National Pension Commission (PenCom), hosted a landmark forum over the weekend to explore strategies for expanding investment opportunities in gold-backed securities through Nigeria’s commodities exchanges.
The event comes in the wake of the revised 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. This regulatory milestone marks a significant step in deepening capital market participation and fostering sustainable economic growth in Nigeria.
The forum brought together key stakeholders from Nigeria’s pension, financial, and commodities sectors to discuss the implications of the revised regulations and practical strategies for leveraging them. Discussions 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.
Speaking at the event, Akin Akeredolu-Ale, Managing Director and CEO of LCFE, noted that the revision of Section 5.9 of the PENCOM Investment Regulation has opened transformative pathways for Pension Fund Administrators (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 stated.
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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.
Delivering the keynote address on behalf of the Commission’s Director-General, Abdulqadir Dahiru, Head of Investment Supervision Department at PenCom, praised the strategic collaboration between LCFE and PenCom. He emphasised that the partnership reinforces 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 recognises gold-backed instruments as eligible for pension fund investment, underscores the Commission’s confidence in the emerging commodities market framework,” Dahiru said.
John Abutu, Head of Legal at the Securities and Exchange Commission (SEC), representing the Commission’s Director-General, 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.
