Police pension fund weighs Dangote Refinery investment

The Nigeria Police Force Pensions Limited (NPF Pensions) is exploring investment opportunities in Dangote Petroleum Refinery and Petrochemicals as part of its diversification strategy. Acting Managing Director Muhammed Dutse revealed this during a Customer Service Week event in Abuja. The pension fund administrator is considering equities, private equity, infrastructure funds, and other alternative assets to generate competitive returns for police personnel and retirees, as declining interest rates threaten traditional fixed-income instruments.

NPF Pensions has maintained an average annual return of 23-24% over the past five years, with some years exceeding 37%. The company is also evaluating investment opportunities in the stock market and assessing the impact of changes in Central Bank of Nigeria's monetary policy on yields. Dutse emphasized that diversification in infrastructure, private equity, and the energy sector would strengthen the pension fund's investment position.

He noted that the government's openness to investment opportunities would attract more potential investments. NPF Pensions has also developed strategies to maintain its investment performance despite changing financial market conditions and is working on improving retirees' take-home pay.