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NPF Pensions is considering investment opportunities in Dangote Petroleum Refinery and Petrochemicals as it seeks to diversify its portfolio.
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The PFA says falling interest rates are making alternative assets, including infrastructure, private equity and energy investments, increasingly important.
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NPF Pensions says it has delivered average annual returns of about 23 to 24 per cent over the past five years.
October 06, (THEWILL) – The Nigeria Police Force Pensions Limited is considering investment opportunities in Dangote Petroleum Refinery and Petrochemicals as part of a broader strategy to diversify its portfolio and sustain competitive returns for police personnel and retirees.
The acting Managing Director of NPF Pensions, Muhammed Dutse, disclosed this in Abuja on Monday during activities marking the 2026 Customer Service Week.
Dutse said the pension fund administrator was exploring alternative investment opportunities as declining interest rates could reduce returns from traditional fixed-income instruments and bank deposits.
“As you can see recently, there’s a lot of hype around Dangote Petroleum Refinery and Petrochemicals. So, we also look up to that as well,” he said.
The comments come amid growing investor interest in opportunities around the multibillion-dollar refinery as efforts to broaden ownership of the facility create potential avenues for institutional investors.
Falling rates push search for alternative assets
Dutse said NPF Pensions was not relying solely on bank investments and was instead pursuing a combination of equities, private equity, infrastructure funds and other alternative assets.
“There are private equity funds, there are infrastructure funds, there are so many investment windows, alternative investments that we can harness to get good returns,” he said.
He said the PFA was also assessing opportunities in the Nigerian equities market, including shares of major companies, as part of efforts to protect pension assets while generating competitive returns.
The strategy has become increasingly important following changes in the monetary policy environment, which have lowered interest rates and could affect yields available on traditional fixed-income investments.
Dutse said the PFA would therefore increasingly examine opportunities in infrastructure, private equity and the energy sector.
“Our strategy is a combination of all these instruments in place. We just don’t rely on what banks give us,” he said.
He added that increased investment opportunities in the economy were creating more options for institutional investors.
“The good thing about this government is that they have opened up opportunities for investment. So, you see a lot of investment opportunities springing up, as I mentioned earlier, infrastructure funds, private equity funds and, especially, in the areas of energy,” Dutse said.
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NPF Pensions targets sustained returns
Dutse said NPF Pensions had recorded an average annual return of about 23 to 24 per cent over the past five years, with returns approaching 37 per cent in one of those years.
He said the PFA had developed strategies to maintain its investment performance despite changes in financial market conditions.
“Clearly, we have worked out some strategies to ensure that we maintain this particular rate of return on our investments, which, of course, is yielding positive returns to all our clients,” he said.
The diversification drive comes as pension fund managers seek to balance returns, liquidity and risk across different asset classes while managing long-term obligations to contributors and retirees.
For NPF Pensions, the potential investment in the Dangote refinery would form part of that broader diversification strategy rather than replace existing investments in conventional assets.
PFA highlights support for retiring officers
Beyond investment management, Dutse acknowledged concerns among retired police officers over pension benefits and said the Federal Government was working on measures to improve retirees’ take-home pay.
He said a presidential committee was considering the issue and that NPF Pensions was involved in efforts to improve the financial position of retirees.
“Currently, there is an attempt by the Federal Government — it’s in fact in the process and we have been working to ensure that the pay, the take-home pay of retirees, is improved,” he said.
Dutse also disclosed that NPF Pensions operates a Retirement Resettlement Support Scheme, which provides temporary assistance to retiring police officers pending the release of their pension benefits.
The PFA also runs pre-retirement programmes designed to prepare officers for life after active service by exposing them to business opportunities and skills, including poultry farming.
On customer service, Dutse said NPF Pensions had expanded direct engagement with contributors and introduced a WhatsApp Business platform that has attracted nearly 100,000 police officers.
The digital platform enables contributors to access pension-related services remotely, reducing the need for officers to visit NPF Pensions offices.
For the pension administrator, the combination of portfolio diversification, digital services and retirement support is aimed at strengthening both investment performance and the experience of police personnel and retirees as the financial market environment changes.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
