PenCom raises equity limits for pension funds, unlocking N1.6 trillion liquidity
PenCom increased equity allocations for Pension Fund Administrators (PFAs) across four RSA fund categories: RSA Fund I to 35% (up from 30%), RSA Fund II to 33% (up from 25%), RSA Fund III to 15% (up from 10%), and RSA Fund VI (Active) to 33% (up from 25). This creates N1.6 trillion in potential new equity investment capacity. The move addresses prior liquidity constraints in pension portfolios and aligns with improving market fundamentals, including a 25.3% year-to-date gain in the NGX All Share Index. With fixed income yields moderating and corporate earnings strengthening, the regulatory change provides structural demand support for equities, potentially enabling the market to outperform 2025's 50% returns.