The National Pension Commission (PenCom) has launched the Pension Industry Non-Interest Advisory Committee to enhance transparency, security, and regulatory compliance in non-interest pension products.
During the inauguration in Abuja, PenCom’s Director-General, Omolara Oloworaran, emphasized that this initiative aligns with the commission’s commitment to inclusivity and financial innovation, ensuring that non-interest pension schemes meet global standards while catering to individuals who prefer ethical and religious-based financial solutions.
She highlighted that the rising demand for non-interest financial products, driven by increased awareness of ethical finance principles, necessitated the establishment of an advisory framework to provide guidance on regulatory and operational matters.
The introduction of Non-Interest Pension Funds (Fund VI) was a step toward offering an alternative investment option free from interest-based instruments while still delivering competitive returns.
Committee Chairman Prof. Adam Abubakar underscored the importance of Shariah compliance monitoring in Islamic financial institutions, stressing that regulatory oversight is crucial for maintaining investor trust and ensuring adherence to ethical financial principles.
The formation of the advisory committee represents a strategic move to deepen non-interest finance in Nigeria’s pension industry, reflecting PenCom’s vision for a more inclusive and diversified pension system.
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