The National Pension Commission (PenCom) , has stated that it has introduced a non-interest fund (Fund VI) and issued an operational framework for the fund to guide pension contributors and retirees. The pension regulatory agency added that it was in furtherance of the implementation of the multi-fund investment structure which seeks to provide investment portfolio choices to pension contributors and retirees.
PenCom, specifically explained that the non-interest fund complies with the provisions of Islamic Commercial Jurisprudence and any other established non-interest principles, as approved by the Financial Regulation Advisory Council of Experts (FRACE); or any other body constituted by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) from time to time. The commission directed all Pension Fund Administrators (PFAs) to create and maintain the Non-Interest Fund (Fund VI) for interested Retirement Savings Account (RSA) holders.
The new package, according to PenCom, offers a viable alternative to the conventional interest-based financial instruments for pension funds investment. NIRSAL Microfinance Bank being promoted by the Central Bank of Nigeria (CBN) has also introduced non-interest loans with a live portal directed at MSMEs and financially excluded women and youth. The apex bank is extending its non-interest window to businesses and households that have been impacted negatively by the COVID-19 pandemic.
Eligible MSMEs are those with one to five staff and verifiable evidence of business activities adversely being affected by the pandemic with evidence of job protection for its staff. Moreso, the CBN in a statement said it is boosting the financial inclusion of women and youth in selected states. The Commission has also developed an online application that automated the Annual Pre-Retirement Verification and Enrollment Exercise for retirees/prospective retirees of Treasury-Funded Federal Government MDAs.
The online enrollment application went live on 1st September, 2021 and Retirees and prospective Retirees were given a deadline of 29th October, 2021 to conclude the enrollment process. This is to inform all Retirees and prospective Retirees that the Commission has extended the timeline for the online enrollment exercise from October 29, 2021 to December 31, 2021 in order to ensure that all eligible persons complete the enrollment process.
Culled Independent
