Access ARM Pensions Positions Fund VII as Strategic Hedge Against Naira Risks
Access ARM Pensions has intensified efforts to broaden retirement savings opportunities in Nigeria by promoting its dollar-denominated pension product, RSA Fund VII, positioning it as a strategic hedge against ongoing currency volatility that has weighed on Nigerian financial markets.
The Pension Fund Administrator (PFA) made this case vividly during a recent industry webinar titled “Understanding the Personal Pension Plan (PPP) and Dollar Fund VII”, underscoring how these products respond to evolving economic realities at both domestic and global levels.
At the event, senior executives highlighted that Fund VII isn’t just another investment vehicle — it represents a shift in retirement planning philosophy for Nigerian savers who are increasingly exposed to fluctuations in the naira. According to Maryam Musa-Amzat, Head of the Private Client Desk at Access ARM Pensions, the market today demands more resilient and adaptable retirement savings solutions.
She stressed that while traditional naira-denominated pension funds remain central to the Contributory Pension Scheme (CPS), there is growing appetite among contributors for dollar-based assets that can preserve value in real terms over the long term.
Fund VII is structured to meet that exact need. Wale Okunrinboye, Chief Investment Officer, explained that it invests across a diversified suite of U.S. dollar-denominated instruments from bonds and money market assets to corporate and supranational securities as well as allocations in specialist funds such as real estate, private equity, and infrastructure that are registered with U.S. regulators. This design targets contributors seeking foreign currency earnings and a buffer against naira depreciation over extended horizons.
The promotion of the dollar fund is deeply rooted in Nigeria’s broader macroeconomic context. Over recent years, the naira has been subject to persistent exchange rate pressures, driven by fluctuating oil revenues, inflationary trends, and foreign exchange market imbalances.
In such an environment, a pension product tied to the U.S. dollar can serve as a built-in hedge for savers who are concerned about the purchasing power erosion of their retirement assets. Analysts see this as particularly relevant for contributors in the informal sector and Nigerians in the diaspora, whose incomes and obligations may be linked to foreign currency benchmarks.
The Personal Pension Plan (PPP) formerly micro pensions was also a major topic at the webinar. Access ARM Pensions executives explained that PPP is designed to extend pension coverage beyond formal sector workers to self-employed individuals, informal traders, and small-scale entrepreneurs.
Under the Pension Reform Act, the plan allows flexible contributions, with tax incentives for long-term commitment: withdrawals made after five years are tax-exempt, while earlier withdrawals attract tax on income earned.
From a regulatory standpoint, the product suite aligns with the National Pension Commission’s (PenCom) strategic objectives of deepening financial inclusion and strengthening consumer protection across the retirement savings ecosystem.
Access ARM Pensions currently manages over ₦4 trillion in assets on behalf of more than two million Retirement Savings Account (RSA) holders, highlighting its growing influence and the scale at which these products are being positioned within Nigeria’s pension landscape.
Market observers note that the introduction and advocacy for dollar-denominated pension funds reflect broader trends in Nigeria’s investment space, where institutional investors have been encouraged to diversify portfolios away from heavy reliance on fixed-income securities.
In 2025, PenCom urged PFAs to explore alternative asset classes and dollar-based instruments to cushion portfolios against local currency risks and enhance long-term returns a policy backdrop that reinforces the relevance of products like Fund VII.
In summary, Access ARM Pensions’ focus on RSA Fund VII and the Personal Pension Plan signals a proactive strategy to equip Nigerian savers with tools that not only meet retirement income needs but also mitigate the impact of currency erosion.
As economic realities continue to evolve, such products could play a pivotal role in reshaping retirement planning offering more diversified, resilient options that preserve value for contributors both at home and abroad.
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