Nigeria’s National Pension Commission (PenCom) announced the framework for securities lending and repurchase transactions (repos) by pension fund administrators (PFAs), noting it is consistent with international best practice, while being adapted to the Nigerian capital market environment.
The framework “is designed to ensure that securities lending and repo activities by PFAs are conducted safely, prudently, and transparently, for the exclusive benefit of Retirement Savings Account (RSA) holders and retirees,” PenCom wrote.
The circular’s stated objectives are to:
- enhance portfolio returns through prudent and responsible securities lending and repo
- provide a standardized, risk-controlled framework for securities lending and repo operations in the pension industry; and
- safeguard pension fund assets through robust governance, disclosure, and transparency requirements.