By: Goodluck E. Adubazi, Abuja.
The Managing Director of NNPC Pension Limited has called for strategic reforms and innovative investment approaches to secure the future of pension administration in Nigeria’s oil and gas industry.
Speaking at the PENGASSAN Pension Summit held at the Transcorp Hilton Hotel, Abuja, on Thursday, the Managing Director said while the defined benefit (DB) pension scheme under NNPC remains solvent, emerging challenges—such as an ageing workforce and increasing voluntary exits—require proactive measures to ensure long-term sustainability.
“From our experience, we’ve seen successes, but also a few challenges,” he said. “We are the only defined benefit scheme where staff also contribute, and that has greatly helped our solvency. However, with an ageing district and increased voluntary exits in the past four years, we must adopt creative strategies to maintain our stability.”
He explained that the company is working to balance pension increments with sustainability, warning that any upward adjustment must be carefully structured to avoid jeopardising the fund’s long-term viability.
“Even when we talk about increment, we must ensure that it doesn’t affect the sustainability of the scheme,” he added. “The goal is to achieve balance between increased benefits and market realities.”
Highlighting the volatility of interest rates and the need for smarter investment, the NNPC Pension chief revealed that the company is shifting focus toward higher-yield assets, while mitigating associated risks.
“We are exploring opportunities with better returns, particularly in real estate and infrastructure,” he said. “Real estate, for instance, offers strong capital appreciation. In some locations, land values have risen from ₦20 million to ₦200 million within five years, which helps hedge against inflation.”
He disclosed that the firm inherited several real estate assets from its sponsor (NNPC), but noted that title and ownership issues have slowed their full optimisation. Efforts, he said, are ongoing to resolve those challenges and turn such assets into value-generating ventures.
The NNPC Pension boss further proposed investments in employee housing and hospitality infrastructure, which he said could serve dual purposes—supporting staff welfare and generating stable income for the fund.
“Imagine if our staff gradually own their homes through structured schemes rather than paying rent to others,” he said. “We can also invest in hotels and training facilities, so every time we host a conference or training, the money circulates within our system and brings in additional revenue.”
He emphasised that the oil and gas pension sector controls both demand and supply chains, positioning it to lead in domestic investment innovation.
“Our key goal,” he stated, “is to take this massive pension fund, channel it into infrastructure with guaranteed and inflation-adjusted returns. That way, we protect contributors’ interests while sustaining the scheme’s solvency.”
He concluded by highlighting the company’s plan to diversify its portfolio into three categories—traditional funds, real estate, and alternative assets such as commodity-based investments—each designed to ensure liquidity, profitability, and resilience against inflation.
“Ultimately, our vision is clear,” he said. “We want a pension system that is self-sustaining, forward-looking, and capable of protecting every contributor’s future.”