By 
The Pension Fund Operators Association of Nigeria (PenOp) has stated that the adoption of standardised Environmental, Social, and Governance (ESG) reporting frameworks will fundamentally transform the Nigerian pension industry and catalyse responsible investing.
Speaking at the High-Level Roundtable in Lagos—a precursor to the 2025 Africa Impact Summit Study Tour—Oguche Agudah, CEO of PenOp, emphasised that a shift toward unified ESG disclosure would mark a critical turning point for Nigeria’s pension system. The roundtable was convened by a coalition of impact investment stakeholders, including Impact Investors Foundation, Impact Investing Ghana, GSG Impact, Alitheia Capital, and Kuramo Capital.
Agudah acknowledged that pension fund administrators (PFAs) are often criticised for perceived lack of transparency in investment choices. However, he highlighted growing commitment within the industry to align with global best practices through ESG integration.
“We are working with a development finance institution to design a standardised ESG reporting framework for all pension funds. Once implemented, this will be a mandatory part of annual disclosures—a move we believe will build public trust and help align domestic pension investment with global sustainability goals,” Agudah said.
A Call for ESG Clarity and Regulatory Coherence
Agudah noted that one of the challenges is inconsistency: while some pension funds voluntarily adopt ESG measures, others are not incentivised to do so. He argued that uniform reporting standards will level the playing field and provide a clearer basis for comparing performance and risk.
“Without a consistent standard, ESG leaders are penalised for doing the right thing. We’re changing that narrative. What we are developing will not only define how ESG is measured and reported, but also establish Nigeria’s footprint in the broader Pan-African ESG conversation,” he said, referencing his role on the Governing Council of the Pan-African Fund Managers Association.
Agudah further urged contributors to play a more active role in questioning where and how their pension funds are invested.
“Most Nigerians know their pension balance but have no idea where the money is invested. This needs to change. Contributors must demand transparency and accountability. That is how a more responsible investment culture begins to take root,” he added.
Policy Bottlenecks and Regulatory Limitations
Mrs. Ibukun Awosika, Chair of GSG Nigeria Partner and Vice Chair of GSG Impact, criticised the restrictive regulatory environment governing pension funds. She argued that, despite their potential to drive impact investing, Nigeria’s pension assets are under-leveraged due to outdated policies.
“The deployment of pension funds has not kept pace with the evolving economic landscape. We need innovation, creativity, and context-specific solutions. It’s no longer just about global standards—we must develop local frameworks that deliver local results,” she said.
This sentiment was echoed by Tosin Ojo of Sahel Capital, who pointed to regulatory overreach as a barrier to efficient capital allocation. He cited SEC’s strict gatekeeping role as necessary for market integrity but also warned of unintended consequences that stifle capital flow to high-impact sectors.
“While we understand SEC’s role in safeguarding the market, current rules often limit the ability of pension funds to respond dynamically to market needs—especially when it comes to funding MSMEs,” Ojo said. “There’s an urgent need for regulators like PenCom and SEC to be more integrated into the impact investing ecosystem.”
Unlocking Capital for Inclusive Growth
The session concluded with a consensus on the importance of policy reform to enable pension funds to channel capital into Micro, Small, and Medium Enterprises (MSMEs). Stakeholders stressed that inter-agency collaboration, improved regulatory flexibility, and standardised ESG disclosures are essential to building a sustainable, transparent, and inclusive pension ecosystem.
PenOp’s push for ESG reform, coupled with renewed pressure on regulators to update legacy frameworks, marks a pivotal moment for Nigeria’s pension landscape—one that could unlock billions in sustainable investment and reshape the future of retirement funding.
Comments