Breaking News

PenCom Confirms N5bn Recapitalisation Of All PFAs In Nigeria

The National Pension Commission on Friday announced that as at 27 April 2022, all Pension Fund Administrators have complied with the Commission’s directive for the increase of the Minimum Regulatory Capital (Shareholders’ Fund) from N1bn to N5bn.

Recall that the Commission had approved the recapitalisation exercise for the PFAs with a 12-month transition period from 27 April 2021 to 27 April 2022.

The exercise became expedient as the value of pension fund assets under management and custody had grown exponentially by 244 per cent, from N3trn in 2012 (when the previous recapitalisation was done) to N12.29trn (as at December 31, 2020).

The Commission said in a statement that the sustained growth in assets implies greater fiduciary responsibilities that require more operational capacity by the PFAs.

It said in the statement that the urgent need to ramp up PFAs capacity to manage the increasing number of registered contributors and value of pension fund assets under management led to the recapitalisation exercise.

The statement said, “It is worthwhile to state that 10 PFAs had met the new regulatory capital requirement of N5bn as at 31 December 2021, while the others intensified efforts to meet the deadline of 27 April 2022.

“This resulted in some mergers and acquisitions, which led to the reduction of the number of PFAs from 22 to 20.

“The Commission approved the acquisition of AIICO Pension Managers Limited by FCMB Pensions Limited; and the merger between Tangerine Pensions Limited and APT Pension Funds Managers Limited and subsequent change of name of the merged entity to Tangerine APT Pensions Limited.

“In addition, the Commission also approved Norrenberger’s acquisition of IEI-Anchor Pension Managers Limited, after its acquisition of the majority shareholder, IEI Plc.”

With the conclusion of the recapitalisation exercise, the statement said all stakeholders, particularly RSA holders, should expect increased effectiveness and efficiency as well as improved service delivery from PFAs.

About Editor

Check Also

BUA announces 50% salary increment for staff

Chairman of BUA Group, Abdul Samad Rabiu, says the company has approved a 50 per …

Leave a Reply