PenOp CEO Urges PFAs to Expand Investment Options in RSA Fund VI

Ebere Nwoji

The Chief Executive Officer Pension  Fund OPerators Association(PenOp), Oguche Agudah, has called on  Pension Fund Administrators  (PFAs) , to expand the investment options available under RSA Fund VI through deeper industry collaboration to address existing challenges.

Agudah, who made the call during a webinar session titled, ‘Maximisvng the Potential of RSA Fund VI: Exploring Sharia-Compliant Investments’, further urged operators to seize opportunities of growth in Sharia-compliant and ethical investments to grow the industry.

Also speaking, Chairman of the Pension Industry Non-Interest Advisory Committee (PINAC), Dr. Adam Muhammad Abubakar outlined the current challenges PFAs face in accessing Sharia-compliant instruments. He stressed the need for more investment outlets and enhanced awareness about the growth potential of non-interest financial products.

Head of Investment Supervision of Pencom- Mr. Dahiru, Abdulqadir,

represented by Bil- Taminu  of the same department in PenCom department highlighted the efforts the Commission had made to advance the ethical investment space.

“We understand the challenges PFAs are facing in terms of regulatory clarity. Pencom is committed to providing clear rules that will foster confidence in investing in non- interest instruments, ensuring compliance while driving innovation,” he said.

The session also highlighted how Sharia-compliant investments, particularly Sukuk bonds, have played a crucial role in raising infrastructure funds. Participants at the session argued that expanding the issuance size of such instruments was key to

attracting more PFA participation and driving the growth of RSA Fund VI. They also discussed the importance of clear guidelines from Pencom and SEC to support the growth of non-interest financial instruments.

Also speaking, the Treasurer of Alternative Bank, Abimbola Yusuf, spoke about his firm’s transition into a standalone non-interest bank and highlighted upcoming products for Fund VI.

The CEO of Marble Capital, Akeem Oyewale, was of the same view saying, “The market for Sharia-compliant investments is growing, and we are developing a robust pipeline of instruments to support PFAs in diversifying their portfolios. Collaboration with issuers is key to ensuring that the size of Sharia-compliant issuances grows, creating more investment opportunities.”