By Chinwendu Obienyi

Given Nigeria’s large Muslim population, the new pension Non-interest fund, expected to be launched in the last quarter of this year, will help deepen financial inclusion in the country, the Managing Director, Sigma Pensions, Dave Uduanu, has said.

The non-interest fund, which is Fund VI, under the multi-fund structure introduced by the National Pension Commission (PenCom), is for contributors who choose to have their pension contributions invested in Non-Interest Money and Capital Market Products.

In his speech at a virtual conference to promote ethical investments in Nigeria on non-interest investing hosted by Sigma Pensions, Uduanu stated that when launched, the non-interest fund will boost investments in the nation’s non-interest finance sector.

Uduanu said that the Islamic finance global market has been expanding rapidly in recent years, recording 15-20 per cent annual growth, and is estimated to be worth $3 trillion even as the industry is gaining wider recognition in Nigeria.  

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“The Non-Interest Fund will take off in the fourth quarter of this year. It will boost interest in non-interest finance and also deepen financial inclusion in Nigeria given the country’s large Muslim population that is not participant in the ethical fund investments and Islamic financing and this is the right time for it.”

The Sigma Pensions boss called on ethical investors to tap into the many investment opportunities which, according to him, abound in the country. 

He stated that when it takes off, the non-interest fund will be a positive development for the pension industry, adding that Nigeria is probably the only country with a large Muslim population that does not currently have such an ethical Fund.

He explained that for the second time in two years, Sigma Pensions decided to host the 2021 conference, which had as its theme, “Non-Interest Investing: Investing my money; my values,” as part of its efforts to raise public awareness about non-interest finance ahead of the launch of the Non-Interest Fund.