LCFE, PENCOM Forge Path for Pension Fund Investments in Gold-backed Securities

The Lagos Commodities and Futures Exchange (LCFE), and National Pension Commission (PenCom), have announced plans to explore strategies for expanding investment opportunities in gold-backed securities through Nigeria’s commodities exchanges. 
This 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.

Speaking at the event, Managing Director and CEO of LCFE, Akin Akeredolu-Ale,  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 recognised 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.

Delivering the keynote address on behalf of the Commission’s Director-General, Head of Investment Supervision Department at PENCOM, Abdulqadir Dahiru, 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. Head of Legal at the Securities and Exchange Commission (SEC), John Abutu, representing the Commission’s Director-General, Dr. 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.

Source: https://www.thisdaylive.com/2025/11/11/lcfe-pencom-forge-path-for-pension-fund-investments-in-gold-backed-securities