Sulaiman: Fund V11 ‘ll Diversify Assets, Support Foreign Capital Formation

The Executive Director, Investments and Strategy, Access ARM Pensions, Abimbola Sulaiman, in this conversation with Nume Ekeghe,  discusses  the new innovation recently introduced into the pension industry, how her firm is preparing  to take advantage of the positive changes among other issues: Excerpts:

The National Pension Commission recently introduced Fund VII, the Foreign Currency Pension Fund. How significant is this development for Nigeria’s pension industry, and what does it mean for Nigerians in the Diaspora?
Fund VII is a groundbreaking innovation for the pension industry, it addresses the growing demand of Nigerians both at home and in Diaspora for a pension savings product in foreign currency.  It offers a more secure and highly regulated way to save in foreign currency. This segment of customers either already  earn in foreign currency or envisage having foreign currency liabilities in future which they would like to save towards. Furthermore, the product provides enhanced risk management for the contributor by protecting their savings from currency depreciation while preserving value and offering flexible withdrawal terms. Foreign currency retirement savings offer enhanced inflation protection and is protected from maladministration. You will agree with me that the pension industry is one that is highly regulated, and the National Pension Commission (PenCom) has ensured strict compliance to its standards over the last two decades.
For the industry, it deepens asset diversification and supports foreign currency capital formation which can be directed to productive segments of the economy thus strengthening it.

From your perspective, how will Fund VII redefine the relationship between Nigeria’s pension system and Nigerians abroad — particularly those who may have opted out of local retirement planning in the past?
I would not say they opted out of the scheme, rather, the opportunity to save in foreign currency was not made available to them. As I mentioned earlier, there are two categories here, the first category are contributors who have relocated abroad in recent times, and the other being those who were living abroad prior to the pension reform. The first category might have wanted to continue contributing from where they had stopped before relocation. The new foreign currency Fund VII has now opened a pathway for that to happen. It is an opportunity to save in a high regulatory environment with strict oversight compared to other products in the market. It gives them comfort that their funds are safe.
Nigerians naturally are people with strong primordial affiliations to the motherland; hence, even for Nigerians who have not hitherto been in the contributory pension scheme, Fund VII has changed narrative by bridging the gap and allowing contributions in United States Dollar(USD), under strict regulatory oversight and compliance framework, as well as global-standard investment options. It signals that the Nigerian pension system is evolving to meet the realities of the Diaspora workforce.

Do you believe the industry is adequately prepared for the complexities of foreign-currency pensions — such as FX transactions and cross-border engagement? And does Access ARM have the platform and capacity to manage these seamlessly?
Yes, the industry is prepared for this development, and I believe it is long overdue. PenCom has issued clear guidelines in this regard. As a leading operator in the industry, Access ARM has the professional wherewithal to manage the complexities you highlighted. We have invested in robust technology, compliance and risk management framework and FX transaction capabilities. Our platforms are designed for seamless cross-border engagement, ensuring contributors enjoy convenience and security without worrying about operational complexity. Our customer experience team is well equipped to provide necessary support for all existing and prospective customers.

Some potential contributors have expressed concern about currency exposure and regulatory oversight. How does Fund VII strike the right balance between opportunity and prudence — both for contributors and pension operators?
Fund VII offers flexibility without compromising safety. Contributions are in USD; withdrawals are regulated and PFAs operate under PenCom’s strict oversight. Just like every other fund, the assets are not held directly by the PFA but with Pension Fund Custodians who have the backing of some of Nigeria’s largest Tier-1 banks. The allowable investment outlets are also strictly monitored by the National Pension Commission with all necessary prudential limits.  This structure ensures contributors benefit from foreign currency diversification impact while maintaining strong governance and risk controls, better value preservation and confidence that their retirement savings are protected against inflation and currency risk.

In your view, what safeguards or governance measures are most critical to ensuring Fund VII remains both sustainable and transparent?
PenCom has ensured that the key safeguards include robust KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance, mandatory independent audits, and transparent reporting. These critical measures not only shield contributors from fraud, but also ensure adherence to global best practices thereby preserving public trust in the system. The regulatory oversight by PenCom’s framework also mandates strict adherence to investment guidelines effectively preventing any misuse of funds. A significant layer of protection, mirroring the traditional local currency pension funds, is the separation of roles of the fund administrator and the fund custodian. All these provisions are critical to ensuring the safety and sustainability of the contributory pension scheme.

Access ARM Pensions has earned a reputation for innovation and leadership within the industry. What unique steps have you taken to prepare for Fund VII — from technology integration to investment strategy and customer engagement?
We have invested in robust technology and compliance systems to make foreign currency pension contributions easy and secure. Our platforms are built for smooth cross-border transactions, so contributors don’t have to worry about safety and security.  We are proud to be an innovative and technology-led pension provider, which we capitalize upon to deliver convenience and reliability. As we launch this service, you will see how we make it simple for Nigerians abroad to contribute to their pensions from anywhere in the world. Our technology is flexible enough to integrate with other pension partners like Accredited Pension Agents (APA) approved by the commission and the pension fund custodians.

How does Fund VII fit into your broader strategy of offering more choice and flexibility to contributors, both at home and abroad?
The vision is clear;  to give contributors choices that fit their lifestyle and help them stay secure. Fund VII makes this possible by allowing Nigerians whether in Lagos, London, or any part of the globe to save in foreign currency.However, we also want to emphasise that the local currency option remains available and viable to those who prefer that. The local currency personal pension now has two offerings, classified by the underlying investment strategy. There is a growth investment option and a more conservative investment option to cater for contributors’ varying risk appetites.
Ultimately, it is all about freedom, convenience, and confidence. Wherever you are, you now have the flexibility to save in a way that works for you and keeps your future safe.

Beyond serving as a USD savings vehicle, what wider benefits do you expect Fund VII to bring — for the Nigerian pension industry, and perhaps even for the country’s foreign exchange market?
Fund VII transcends the traditional scope of a pension plan: it is also a strategic move for national economic development. By attracting foreign currency contributions from Nigerians overseas, this will inject crucial foreign exchange(FX) inflows into the pensions sector and the wider economy. Foreign currency remittance into Nigeria has grown over the past decade and now exceeds US$ 25 billion annually, therefore this product is designed not only to increase remittance volumes, but also to channel these large inflows into highly productive economic segments via the domestic capital markets. This will ultimately boost Nigeria’s foreign reserves and supports overall economic stability.

Do you see Fund VII as a potential bridge between domestic capital formation and the global investment community — particularly for Nigerians who wish to remain financially tied to home?
Yes, indeed. Fund VII connects Nigerians abroad to opportunities at home while giving Pension Fund Administrators (PFAs) some scope to invest in the international markets and preserving value for pension fund. This two-way exchange benefits individuals with better returns and helps Nigeria by deepening capital markets and attracting foreign capital to support local economic growth.

The Personal Pension Plan (PPP) seeks to bring informal-sector and self-employed Nigerians into the pension net. What challenges do you foresee in adoption driving, and how is Access ARM addressing them?
The biggest challenges are low awareness, trust and limited disposable income at the lower economic rung of the populace. For many informal workers, retirement planning is simply not an immediate priority. Furthermore, with Nigeria’s youthful demographic, young people often see retirement as a distant concept. We are addressing these issues through intensive education, engagement and financial literacy campaigns. We are collaborating with key partners in financial inclusions to ensure that the imperative to prioritize retirement planning and pension savings is clearly commuincated across every segment of the population. 

How does PPP align with your vision of financial freedom for everyday Nigerians, especially given that many still live outside formal retirement structures?
PPP is all about inclusion. A large segment of Nigeria’s working population are not in formal employment where contributory pension saving is mandatory. This innovation gives self-employed and informal sector workers a clear and structured way to save for retirement. This means every Nigerian, no matter how they earn can look forward to retiring with dignity and security. It is all part of our mission to make retirement planning accessible to everyone.

What digital tools or partnerships are you leveraging to make participation seamless — particularly for Nigeria’s mobile-first, cash-driven workforce?
We have designed everything to be quick and stress-free ensuring transactions are safe and reliable. We would leverage on our mobile apps and secure payment gateways, alongside partnerships with financial technology companies and banks. Our goal is to ensure that this product is e-enabled right from on-boarding customers to contribution collections and ultimately, benefit administration.

With recent mergers and rapid product evolution across the industry, how do you see customer trust and brand confidence evolving in the pension space?
Trust will depend on transparency and service quality. At Access ARM, we prioritise clear communication, strong governance, and consistent performance. In a fast-changing industry, trust is earned through reliability and customer-centric innovation.

Looking ahead, how do you envision the future of pensions in Nigeria — as technology, globalisation, and shifting work patterns continue to redefine how people earn, save, and retire?
The future of pensions is digital, global, and flexible. Technology will make saving simple, globalisation will create more investment opportunities, and changing work patterns will require innovative solutions like PPP and Fund VII. Our goal is clear: every Nigerian, at home or abroad, should be able to plan confidently for retirement—with convenience, choice, and security