The National Pension Commission (PenCom) has inaugurated a Pension Industry Non-Interest Advisory Committee to enhance transparency and compliance in non-interest pension products.
The Director-General of the commission, Omolara Oloworaran, in her keynote address during the inauguration of the committee on Monday in Abuja, explained that the initiative aligned with the commission’s commitment to innovation, inclusivity, and sustainability in pension administration.
She pointed out that the initiative would ensure that non-interest pension schemes adhered to global best practices while catering to individuals’ needs on financial solutions that align with their ethical and religious beliefs.
The Director-General maintained that the inauguration of the advisory committee demonstrated the commission’s sustained drive for financial inclusion and deepening the reach of non-interest pension products within the industry nationwide.
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According to her, the introduction of Non-Interest Pension Funds (Fund VI) is 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 clarified that the rising demand for non-interest financial products, driven by increased awareness of ethical finance principles, had made it imperative for the commission to establish a structured advisory framework to guide regulatory, operational, and market developments.
She said: “In recent years, the commission has witnessed increasing demand for non-interest financial products, driven by a growing awareness of ethical finance principles and the need for alternative investment avenues.
“However, the development of this segment requires structured guidance, expert insights, and collaborative strategies to navigate regulatory, operational, and market challenges.
“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,” the Director-General added.
In his remarks, the Chairman of the advisory committee, Prof Adam Abubakar, harped on the importance of a Shariah-compliant monitoring system in Islamic financial institutions in view of the role in ensuring compliance, building trust, and enhancing credibility in the sector.
The industry expert described the regulatory oversight as critical to ensuring investor confidence and guaranteeing that non-interest pension products operate in line with ethical and religious financial principles.
Industry analysts believe that the inauguration of the advisory committee marks a major step in the PenCom’s efforts aimed at deepening non-interest finance in the pension industry demonstrates its long-term vision of a more inclusive and diversified pension system in the country.
