The National Pension Commission (PenCom) has introduced new guidelines to ensure uniformity in calculating and reporting pension fund performance.
The move is aimed at strengthening transparency and curbing short-termism in Nigeria’s pension industry.
The directive, signed by the Head of Surveillance at the commission, Muhammad Abdulrahman Saleem, took effect from July 1, 2025, and applies to all licensed Pension Fund Operators (PFOs).
It is a new initiative that replaces sections of the existing regulation on the valuation of pension fund assets.
Under the new framework, Pension Fund Administrators (PFAs) must compute investment returns using a rolling 36-month period and annualise the figure to four decimal places.
For unitised funds, this involves calculating the root of the ratio between the end and beginning accounting unit values.
Non-unitised funds such as Approved Existing Schemes CALS), Closed Pension Fund Administrators (CPFAs), and Additional Benefit Schemes (ABS) must adopt the Time-Weighted Return (TWR) method to ensure uniformity across fund structures. The guideline further requires PFAs to publish monthly performance reports by the 10th of each month on their websites.
