DG PenCom

By Ngozi Onyeakusi— The National Pension Commission (PenCom) has disclosed that  20  Pension Fund Administrators (PFAS) operating in the country have met the N5billion recapitalisation requirement as at April 27, 2022.

This was made known  by the Commission in a statement released made it clear that the 20 PFAs have complied with the Commission’s directive for the increase of the Minimum Regulatory Capital (Shareholders’ Fund) from N1 billion to N5 billion.

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 percent, from N3 trillion in 2012 (when the previous recapitalisation was done) to N12.29 trillion (as at December 31, 2020). The sustained growth in assets implies greater fiduciary responsibilities that require more operational capacity by the PFAs.

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.

It is worthwhile to state that 10 PFAs had met the new regulatory capital
requirement of N5 billion 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, stakeholders, particularly
RSA holders, should expect increased effectiveness and efficiency as well as
improved service delivery from PFAs.