The National Pensions Commission (PenCom) said it had introduced an interest-free fund (Fund VI) and published an operational framework for the fund to guide contributors and retirees.
In a post, the pension regulatory agency said it is promoting the implementation of the multi-fund investment structure that aims to provide investment portfolio choices to contributors and retirees.
Explaining further, PenCom said that the interest-free fund complies with the provisions of Islamic business case law and any other established principle of no interest, as approved by the Expert Advisory Council on Financial Regulation (FRACE); or any other body incorporated by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) from time to time.
The committee called on all pension fund administrators (PFAs) to create and maintain the interest-free fund (Fund VI) for interested Retirement Savings Account (RSA) holders.
The new package, according to PenCom, offers a viable alternative to conventional interest-based financial instruments for the investment of pension funds.
The NIRSAL Microfinance Bank promoted by the Central Bank of Nigeria (CBN) introduced interest-free loans with a live portal aimed at MSMEs and financially excluded women and youth.
Apex Bank is extending its interest-free window to businesses and households that have been negatively affected by the COVID-19 pandemic.
Eligible MSMEs are those with one to five employees and verifiable evidence of business activities adversely affected by the pandemic with evidence of employment protection for its staff.
The funding limit for MSMEs is 2.5 million naira while the household is limited to 1 million naira, the bank said.
Additionally, the CBN said in a statement that it promotes the financial inclusion of women and youth in some states.
The digital financial inclusion campaign set to begin in Gombe State from November 1-5, 2021 is the first of six pledges expected to cross states with high numbers of financially excluded women and youth.
The statement identified Bayelsa, Ebonyi, Jigawa, Niger and Oyo as other states with large populations of financially excluded vulnerable women and youth, adding that those belonging to these groups should benefit from the campaign throughout. year.